Technology Adoption in Supply Chain Management

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Technology Adoption in Supply Chain Management
In the recent past, there has been increased reliance on package-delivery companies to facilitate the movement of goods from one place to another. Individuals, hotels, businesses, and other customers rely on companies such as FedEx and United Parcel Services Inc. to deliver products in an efficient and reliable manner. Baskin reports that these leading companies have embraced new approaches for handling the holiday rush without increasing the number of employees. The two largest players in this industry have invested in technology and capacity, which will enable the organizations to process millions of parcels during the holiday seasons. Suggestively, there is an upsurge in the activities that occur in the supply chain, and companies have responded by incorporating appropriate technologies. The increased demand for delivery services in the holiday season can be attributed to online shopping. Many businesses have online platforms where they sell their products or use third party companies to reach the consumers (Oh and Kwon). Once goods are purchased online, they need to be transported to the buyer. The delivery process is an essential aspect of online shopping. The increased competition on online platforms requires businesses to seek means of creating competitive advantage in the supply chain. There is growing evidence that online shoppers show concern over the quality of the product when they get it, and the time it takes to be delivered. In this light, retailers outsource delivery services for companies such as FedEx and UPS, which have specialized in the transportation business.
The peak season in online shopping is experienced during the holidays, which adds to the delivery requirements of other retailers. Often during this period, there are multiple days where the volume of products to be delivered approaches or surpasses the average volume requiring the companies to seek extra labor (Oh and Kwon). A survey by Deloitte shows that more than half of the shoppers are likely to send a gift to a recipient who could not buy for themselves. Additionally, Baskin reviews that the time between Thanksgiving and Christmas in the USA is the busiest time for business for FedEx and UPS. In previous years, the companies faced challenges in ensuring that items were quickly sorted and shipped. Before 2016 the two carriers addressed the issue by hiring huge numbers of contract workers that increased the operating costs.
FedEx and UPS have introduced improved automation technology and software that will ensure effective and enhanced organizational performance in the peak period. The introduction of technology in the supply chain is essential for reducing the time spent between the producer and the end consumer (Fisher, Vaidyanathan, and Gu). Additionally, technology is key in reducing labor costs because the numb...