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The use of GIS applications in supply chain management (SCM) is essential for modern business operations. GIS tools are applied in various areas of SCM, such as mapping manufacturing units, processing centers, supplier locations, distribution hubs, and vehicle routing. Geographic data provides spatial insights that improve logistics, ensure cost efficiency, and enhance customer satisfaction.
The primary goal of SCM is to efficiently plan and manage materials, information, and financial flows to ensure the seamless delivery of goods and services. A supply chain management system with GIS applications typically involves at least three phases:
GIS software has proven to be highly useful in the utility sector, providing a powerful tool for managing and analyzing complex spatial data related to infrastructure, assets, and operations.
GIS helps analyze the impact of product location by identifying optimal sites for manufacturing units, warehouses, and distribution centers. It considers factors like proximity to suppliers, transportation accessibility, and regional demand, enabling businesses to reduce costs and streamline operations. GIS also allows for scenario planning, helping adapt to market shifts or environmental constraints.
GIS enhances logistics by monitoring transportation delays, traffic, and infrastructure bottlenecks in real time. It also identifies alternative routes during geopolitical turmoil, ensuring minimal disruptions. These insights enable businesses to optimize delivery schedules, improve efficiency, and maintain customer satisfaction.
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GIS improves material availability and delivery by tracking supply routes and estimating arrival times. It also supports demand forecasting by analyzing geographic trends and consumption patterns. This helps businesses align supply with demand, manage inventory, and avoid overstocking or shortages.
