It's naïve of anyone even vaguely aware of what's happening in business today to suggest that technology doesn't matter. It matters—and the companies that have emerged as the top performers in their respective industries know how to use technology wisely and well.

But for these leaders, technology is not the be all and end all. They understand that other dynamics come into play that facilitate the use of supply chain technology...things like sound processes, good data, an appropriate supply chain design, and strong relationships up and down the supply chain. Technology enhances all of these building blocks. And these building blocks, in turn, enable the technology to fulfill its promise.

Well-known educators and authors David Simchi-Levi of MIT and Claus Heinrich of the University of Mannheim underscore this point in their opening piece on "Do IT Investments Really Pay Off?" The short answer to their question is yes—provided that the right business processes are in place. Their quantitative research found that companies with mature business processes and strong supporting software outperform the competition across a number of key supply chain metrics—including order fulfillment leadtimes, inventory levels, and cash-to-cash cycle time. They also stand out in another critical metric: profitability.

When it comes to maximizing supply chain technology, having the right supply chain design really goes hand in hand with having the right processes. As James Reeve and Mandyam Srinivasan point out in their article, business and competitive situations change, and supply chain designs need to change with them. The authors lay out the four basic types of supply chain design and tell how to determine which one makes the most sense for your business—both now and in the future.

Remember, too, that the most sophisticated technology won't do much good if it's superimposed on inaccurate data. According to Eric McMillian and Gurram Gopal, the "cure" for this malady is data synchronization. More specifically, they advocate participation in the GS1 Global Data Registry, a synchronization service offered by standards organization UCC.EAN. The real-life case study included in their article highlights the clear and immediate benefits that companies can realize by joining the registry.

When it's all said and done, business success is largely about relationships. And while the transaction part of these relationships can be automated through technology, the core of any strong relationship depends on real live people working together. Booz Allen Hamilton consultants Bill Jackson and Conrad Winkler talk about this in their article on the "advantaged" supply network. Yes, technology is part of this. But the real secret to success is something a lot more basic: A desire to work together for higher productivity and mutual gain.

(781) 734-8652, fquinn@reedbusiness.com