Discuss the impact of internet on supply chain management.

Discuss the impact of internet on supply chain management.

We are in a world of Digital Disruption

It’s changing fast and rapidly developing the world as we know it is moving to industry 4.0 that is connected, intense, agile and responsive. Many logistic companies in Pakistan that do not adjust themselves with the rapid changes we are about to explain here will have trouble keeping up with the market. So keep reading to find out what good and best impacts the internet has on supply chain management.

Our planet earth gave us the gift of the internet on its 1960th birthday and we have been rigorously using it for our benefit and to some extent in saving the planet as well.

With the internet came a lot of new disruptive innovations. Some of them to mention would be, Blockchain and IoT (internet of things). These two with AI and other advancements are the biggest contributor to the growth of safe, secure and real-time data gathering.

This real-time data gathering is what our dear supply chain management employees needed to fight against these digital brands that provide customizable products that could be ordered from anywhere at any time.

Understanding Supply Chain Management

You know what supply chain management is, you have read about it in your course books but you don’t understand it? Let’s make it a one-liner (that’s our specialty)

Supply chain management is a process that starts from “Buying raw material” and ends at putting the finished product on retail store shelves.

Get it? This process has a few pit stops that don’t need a supply chain management person’s attention. Like after the raw material has been bought, it starts the production and marketing phase. Which is no concern to a supply chain (we just came up with this)

Your work starts as soon as the product is made and its marketing has started. Because it’s your job to put it on the shelves of every retailer on your companies list. Easy right? No, it involves “EVERYTHING”.

Finding the cheapest supplier for your raw material who deliver on time with consistency, to coming up with fuel-efficient routes, faster delivery techniques and reacting to the sudden change in the market for your product is your job”

Why do you have to put Digitalization in everything??? Why??

Because it’s like salt to your dishes in the 21st century and everything is bland without it. So here is how the internet or shall we say digitalization is affecting supply chain management.

1.   Tie up your supplier in chains!

Not literally but figuratively yes! Try blockchain smart contracts for your next deal with suppliers from around the world and make transactions easy. You don’t know what smart contracts are? Nor do you know what blockchain is? Let’s explain it so you can understand better. Here comes another one-liner!

“Series of blocks that are connected with one another and story data are blockchains”

And Contracts that open when certain conditions are met are called smart contracts”

Smart contracts are a part of blockchains. They are safe and secure just like any blockchain such as bitcoin etc. Smart contracts are slowly taking over supply chain management because of their security and conditions that need to be met before they can be cashed.

You can easily have a smart contract with any of your suppliers around the world and once the conditions mentioned in the smart contract are met the contract would mature and pay the party on the other end.

2.   Use sensory to predict inventory!

Internet of things is a disruption that has connected everyday normal devices to the internet. These devices send information to the server which is used to assist customers. Supply chain management is using this information to predict a shortage of inventory in their supplier’s warehouse to boost up production.


Logistics is rapidly being taken over my digitalization and their effects are so far positive on this field of study. Companies like CFI Pakistan are already developing ways to embrace this change. How prepared are you?

Author Bio:

Muhammad Ahmed is BS in Commerce from the University Of Karachi – Pakistan. And also a Marketing specialist at CFIPak.


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