How to Use Supply Chain Optimization Technologies

| Updated on March 21, 2024

Supply chain optimization is intended to improve the performance of a supply network. There are different technologies that are used in his process. The main goal of supply chain optimization is to develop a supply chain so it works seamlessly and both business owners and customers have the best experience from it.

Supply Chain Organization Process

There are three stages that occur in the process of supply chain optimization:

  • design;
  • planning;
  • execution.

Supply chain design mainly refers to designing important operations and interconnections, planning implies creating all of the major plans, and supply chain execution refers to the processes of executing and managing different aspects. 

Some of the benefits of supply chain optimization include:

  • lower costs;
  • better customer service;
  • better risk management.

How do Supply Chain Optimization Technologies Work?

Nowadays, the supply chain has become more digital. As a result, users can increasingly benefit from platforms or sets of standard digital technologies-powered processes, tools, and approaches, allowing users to create value by adding products and services mutually synergistically. However, achieving digitalization across the entire supply chain will require people with the vision, skills, and know-how to help the organization weather the cultural shift necessary for an organization to adopt such a significant advance. 

Technologies like blockchain and AI are used together in the process of supply chain optimization. Blockchain becomes more powerful when used with AI and IoT. AI enhances the work of blockchain and derives meaningful context from it. 

All of the technologies used in the process have complex algorithms and ensure customer demands are met in the best possible way. A Supply chain app can help you effectively forecast the future inventory demand. Logistics planning software uses similar methods in its work.

In order to use supply chain optimization technologies effectively, a thorough analysis has to be done. With the help of technology, business processes can be easily organized, standardized, and enhanced. Supply chain optimization tools handle many important processes and make the most out of them.

What platforms are must-haves in your supply chain technology stack? Technological adoption is so rapid that what used to take a decade to percolate across industries now takes mere months. 

As a result, supply chain professionals are using many platforms to manage the supply chain. In this blog, I will glimpse how to use supply chain optimization techniques in every supply chain technology stack.

ERP (Enterprise Resource Planning) 

Enterprise Resource Planning or ERP is business process management software that allows an organization to use a system of integrated applications to manage the business and automate mini-vac office functions related to technology services and human resources. 

The feature-reach working environment of ERP combined with the more streamlined and efficient workflow of an effective supply chain management process can provide a range of essential advantages like improved efficiency, customer service, workflow automation, and more. 

WMS (Warehouse Management System) 

Warehouse Management System or WMS is a software application that helps control and manage the day-to-day operations in a warehouse. For example, WMS software guides inventory receiving and putting away, optimizes picking and shipping of orders and advises on inventory replenishment. Benefits of a WMS include

  • promoting customer satisfaction and service by reducing errors in the order fulfillment process,
  • reducing redundancies and picking routes, and
  • decreasing the deep per equipment cost of shipping and managing inventory.

It also helps to boost labor efficiencies and reduce security breaches.

YMS (Yard Management System)

Yard Management System or YMS is a software application designed to manage trailer movement within large yards or Transportation hubs. The value of a yard management system often varies by industry vertical for internet retailers; velocity is everything. At the same time, a manufacturer deals with knowing where their inventory is in the yard to feed the production line. Retail distribution focuses mainly on on-time deliveries that drive customer satisfaction.

TMS (Transportation Management System)

Transportation Management System or TMS is a platform to streamline the shipping process. A TMS allows shippers to automate the procedures and receive valuable insight to save time and reduce spending on future shipments. Shippers also get benefits like reduced freight costs, improved scheduling, more control, and the ability to fly to market conditions.

Integration and APIs (Application Programming Interfaces)

These are not platforms per se but connection technology, no matter how many systems the supply chain executive uses. If they are not connected, also known as integration, data flows are not shared. As a result, visibility decreases, causing inefficiency and disjointed operations. As mentioned, those that can integrate various platforms can increase the ROI of every technology investment.


The process of supply chain optimization is highly beneficial for business owners as it creates possibilities for minimizing expenses and meeting all the client’s demands. 

If used properly, supply chain optimization is a powerful tool for reducing unnecessary expenses and enhancing productivity. The supply and demand in the process of supply chain optimization are managed in a way that helps provide the best service.

John M. Flood

John is a crypto enthusiast, Fintech writer, and stock trader. His writings provide guides to perform your best in the crypto world and stock planet. He is a B-Tech graduate from Stanford University and also holds a certification in creative writing. John also has 5 years of experience in exploring and understanding better about the FinTech industry. Over time, he gained experience and expertise by implementing his customized strategies to play in the crypto market.

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