A supply chain is a process of the procurement of the raw materials, turning them into finished products, and supplying the finished product to the customer. While the process may look simple, it can get pretty overwhelming for the manufacturer and supplier. Ensuring that the product reaches the end customer in good quality is an important decision for any supplier. That’s where the geographic information system comes into the picture. The technology is used for mapping every process and the faculty involved in the supply chain. From warehouses to distribution centers, GIS plays a pivotal role in ensuring quality production.
GIS has made it possible for people to get a visual picture of these areas to better understand the supply and chain environment. Not only that but GIS is widely used for identifying the most prominent route a vehicle must take in order to reach a specific place in the distribution or food procurement process. Combined with GPS technology, a geographic information system is your one-stop solution to find alternative routes if the primary routes are occupied or not in a state to facilitate a seamless supply chain. What makes GIS even more effective is the fact that it helps you find out the best warehouses and facilities in the town based on the places of raw material production and where they are supposed to be supplied.
GIS in Supply Chain Management
Integrating GIS with your supply chain management streamlines a plethora of decisions associated with the supply and demand, such as finding the most accurate route to the target destination or figuring out the most suitable location where you can store your supplies. Although GIS can be used in the product supply and chain network in a plethora of ways, the most popular ones remain its ability to visualize every facility. The maps bring multiple factors into a single platform, helping you get a clear view of what exactly your supply chain looks like, instead of assuming things by looking at the spreadsheet.
As mentioned before, GPS navigation makes it possible for manufacturers, suppliers, and other parties involved in the supply chain to get the product to its final destination. However, it is GIS that incorporates data into the system in a way that allows people to utilize it for making strategic and advanced decisions. The main objective of integrating GIS with the supply chain is to simplify the product development and supply processes by providing people with a visual picture of how their products are performing and what changes can be made in order to ensure a seamless development cycle.
Another important application of GIS is risk management. In the past few years, we have seen many cases where suppliers were unable to ship the product to the target location because of a natural disaster. If you have experienced it before, you know the importance of strategic planning. The best part about GIS is that it provides you with a visual map that helps you see the likelihood of these tragedies ahead of time, so you can make better decisions.