Technology’s transformation of commerce, retail and supply chains

A capitalistic economy functions off of the basic act of the exchange of goods, in the form of trade or business. Most businesses offering goods or commodities operate via a supply chain model. ‘Supply chain’ is a commonly thrown-around term in economic discourse used to refer to companies that operate on the basis of a chronological sequence of motion of a given commodity, from its manufacturing state to its final delivery state. In today’s digitized economy, retail and commerce companies have quickly transitioned into online forms of e-commerce, omnichannel, and delivery based systems – further complicating their supply chain designs. This has only been heightened by the pandemic, speeding up the demand of many of these trends. But technology’s role in sustaining the operations of these supply chain models has further potential than just what meets the eye, and the companies that harness this are the ones that will stand out in the years to come.

An article published by Harvard Business Review described how Walmart, a global supply chain management leader, has recently incorporated new blockchain technology-based systems into their procedures for dealing with issues regarding data discrepancies amongst various parties in their supply chain. From gallons of fuel for transport vehicles to weather conditions and temperatures of various regions, there are over 200 data points to be collected and analyzed across multiple data systems in Walmart’s supply chain, according to the article – leaving plenty of room for data errors and miscommunication. Through automating the reconciliation process of these problems via a blockchain network, Walmart has been able to bring down the percentage of its disputed invoices from 70% to 1%.

The role of technology in advancing supply chain management techniques include but are not limited to real-time management of data, cross party order management, automation of logistics, finance management,and legal disputes. From consumer data privacy regulators to online dispute resolution mechanisms, the field of e-commerce and supply chain tech is rapidly transforming the way we do retail, trade, and business: utilizing technology to make the process and experience of exchanging goods as seamless, advanced, and customer-centric as possible.

By Trisha K Venkatesh