{"id":6642,"date":"2026-03-31T18:19:30","date_gmt":"2026-03-31T22:19:30","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=6642"},"modified":"2026-03-31T18:22:10","modified_gmt":"2026-03-31T22:22:10","slug":"what-is-supply-chain-management","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/what-is-supply-chain-management\/","title":{"rendered":"What is Supply Chain Management? Components, Technology &amp; Best Practices for Distributors"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/strategy-legal-operations\/\" class=\"entry-header__link\">Strategy, Legal &amp; Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat is Supply Chain Management? Components, Technology &amp; Best Practices for Distributors\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tLearn what supply chain management is, how the SCOR model works, and how Industry 4.0 technologies help distributors build connected, resilient supply chains.\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2026-03-31T18:19:30-04:00\">March 31, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What is Supply Chain Management? Components, Technology &amp; Best Practices for Distributors\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-supply-chain-management\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/ashleyhindsman\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/02\/Ashley-Thompson-350x350.jpg\" class=\"entry-author__image\" alt=\"Ashley Thompson\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/02\/Ashley-Thompson-350x350.jpg 350w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/02\/Ashley-Thompson.jpg 600w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Ashley Thompson<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Supply Chain Management (SCM) is the end-to-end coordination of sourcing, procurement, production, inventory, and delivery \u2013 from raw materials to the final customer. Supply&nbsp;chains today are complex, dynamic networks that require seamless connectivity, real-time data visibility, and the ability to adapt quickly to disruptions. Businesses must prioritize collaboration, proactive decision-making, and digital transformation to build a resilient supply chain.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Getting organized and understanding the basics of how a successful supply chain works are the first steps to scaling up production.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this article, we\u2019ll define what supply chain management is, and walk through the tasks, objectives, and components you\u2019ll need to do it well.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-here-s-what-we-ll-cover\">Here&#8217;s what we&#8217;ll cover<\/h4>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-is-supply-chain-management-scm\" data-level=\"2\">What is Supply Chain Management (SCM)?<\/a><\/li><li><a href=\"#h-the-scor-model-evolving-for-a-digital-supply-chain\" data-level=\"2\">The SCOR model: Evolving for a digital supply chain<\/a><\/li><li><a href=\"#h-industry-4-0-technologies-for-supply-chain-management\" data-level=\"2\">Industry 4.0 technologies for supply chain management<\/a><\/li><li><a href=\"#h-achieve-unprecedented-control-and-resilience-in-your-distribution-network\" data-level=\"2\">Achieve unprecedented control and resilience in your distribution network<\/a><\/li><\/ul><\/div>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Move beyond ERP with Sage X3<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p><span data-teams=\"true\"><span class=\"ui-provider ath ati ol atj atk atl atm atn ato atp atq atr ats att atu atv atw atx aty atz aua aub auc aud aue auf aug auh aui auj auk aul aum aun auo\" dir=\"ltr\">Take control of your entire business, from supply chain to financial with X3. <\/span><\/span><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><span data-teams=\"true\"><span class=\"ui-provider ath ati ol atj atk atl atm atn ato atp atq atr ats att atu atv atw atx aty atz aua aub auc aud aue auf aug auh aui auj auk aul aum aun auo\" dir=\"ltr\">Incredibly customizable software for established manufacturers and distributors looking for greater efficiency, flexibility, and insight.<\/span><\/span><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-us\/sage-business-cloud\/sage-x3\/?#gate-d21fb4c2-0128-4fde-b93a-17c7d6bbe099\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-3903\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>See how X3 supports Industry 4.0 SCM<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"540\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Distribution_0262-540x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Distribution_0262-540x810.jpg 540w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-supply-chain-management-scm-nbsp\">What is Supply Chain Management (SCM)?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Supply chain management (SCM) encompasses a wide range of activities, including demand forecasting, procurement, supplier relationships, production, inventory control, warehousing, and logistics.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s about using <a href=\"https:\/\/www.sage.com\/en-us\/blog\/real-time-insights-with-supply-chain-dashboard-customization\/\" target=\"_blank\" rel=\"noreferrer noopener\">supply chain visibility tools<\/a> to ensure real-time visibility into the movement of materials and products, from suppliers to end customers, while enabling organizations to anticipate disruptions, make data-driven decisions, and respond proactively to shifting demands. Additionally, it requires the monitoring of industry trends to anticipate future needs and challenges.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Supply chain management is a critical function within wholesale distribution because its efficiency impacts the success of other integral parts of the business:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Customer service:<\/strong> A connected supply chain enables real-time tracking and transparency, allowing customers to access updates at every stage of the process. This builds trust, reduces uncertainty, and improves overall customer experience.<\/li>\n\n\n\n<li><strong>Operating costs:<\/strong> The supply chain must be timed in a way that supports the demand level for the product to avoid overstocking and inventory costs. It\u2019s also where you manage supply costs like raw materials and transportation.<\/li>\n\n\n\n<li><strong>Financial management:<\/strong> As you speed up the product flow to your customers, you speed up your cash flow into the business. If you can get your product to the customer in 10 days instead of 30, you can invoice them 20 days sooner. Visibility into your supply chain can highlight where you can reduce costs and wait times, and increase profit margins.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-scor-model-evolving-for-a-digital-supply-chain\">The SCOR model: Evolving for a digital supply chain<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Supply Chain Operations Reference (SCOR) model has long been a standard framework for optimizing supply chain performance. Traditionally used to structure and measure supply chain activities, it must now also embrace connectivity, transparency, and resiliency to address today&#8217;s evolving challenges.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-the-digital-evolution-of-scor\"><a><\/a>The digital evolution of SCOR<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Modern supply chains demand real-time visibility, predictive insights, and adaptive decision-making. The SCOR framework is evolving to integrate emerging technologies such as&nbsp;<a href=\"#h-ai-assisted-innovation\" type=\"internal\" id=\"#h-ai-assisted-innovation\">AI and machine learning<\/a>, blockchain for supply chain integrity, and real-time monitoring through the&nbsp;<a href=\"#h-the-internet-of-things-iot-enabling-real-time-connectivity\" type=\"internal\" id=\"#h-the-internet-of-things-iot-enabling-real-time-connectivity\">internet of things (IoT)<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These innovations transform SCOR from a static process framework into a dynamic, data-driven ecosystem that enhances resilience, risk management, and efficiency.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><a><\/a>Collaborative planning and cloud-based platforms<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">SCOR is no longer just about internal processes. It\u2019s also about how businesses collaborate across&nbsp;the entire value chain. Cloud-based platforms are enabling real-time data sharing across suppliers, manufacturers, and distributors, helping businesses:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Plan for and adjust&nbsp;to demand fluctuations<\/strong>&nbsp;instantly.<\/li>\n\n\n\n<li><strong>Gain visibility<\/strong>&nbsp;into supplier constraints and shipping delays.<\/li>\n\n\n\n<li><strong>Improve inventory management<\/strong>&nbsp;by leveraging real-time data.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-key-benefits-of-a-digital-scor-based-supply-chain\">Key benefits of a digital SCOR-based supply chain<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">By integrating these digital advancements, businesses using SCOR can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Increase supply chain resilience:&nbsp;<\/strong>Predict and mitigate risks with AI-driven insights.<\/li>\n\n\n\n<li><strong>Enhance transparency:&nbsp;<\/strong>Leverage blockchain and real-time data for end-to-end visibility.<\/li>\n\n\n\n<li><strong>Improve agility:&nbsp;<\/strong>Rapidly adjust to market changes with&nbsp;scenario planning and&nbsp;cloud-enabled collaboration.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">SCOR is broken into six components, each including a set of processes that contribute to production:f six components, each with specific processes that support efficient production and distribution:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-planning\">Planning<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Planning starts with nailing down the details of your operation strategy. <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Determine your production and fulfillment locations<\/strong>\u2014whether domestic, nearshore, or international\u2014based on cost, logistics, and market proximity.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Decide whether you make the entire product yourself or purchase some components elsewhere.<\/strong>&nbsp;There are benefits and challenges with either, so this should be done strategically.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Decide how you\u2019ll produce and store your product.&nbsp;<\/strong>Will you make them in advance and store them to await order? Or will you make them once the customer orders? You could also have a portion of the final product made in advance and complete production upon order, or offer order customization.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">You can use any combination of these strategies, and the performance measurement method is established before planning begins.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-sourcing\">Sourcing<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The next phase is procuring your raw materials and any components you intend to outsource.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This needs to happen at the best possible price, at the right time, in the right quantity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Use a <a href=\"https:\/\/www.sage.com\/en-us\/blog\/the-ultimate-supplier-audit-checklist\/\" target=\"_blank\" rel=\"noreferrer noopener\">supplier vetting checklist<\/a> to ensure all&nbsp;suppliers are thoroughly vetted&nbsp;and all contracts are negotiated to get the best value without sacrificing quality. Delivery scheduling is critical, too.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Assessing supplier performance is a continuous requirement for optimal supply chain management, as well as scheduling payments and ensuring import\/export requirements are met.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-location\">Location<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Location is critical for successful supply chain management. A suitable location that is convenient for your resources and materials is ideal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, a carbonated drink company that\u2019s set up in a location where water is scarce could hamper the vitality of the business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-making\">Making<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This is where assembling, testing, and packing activities happen.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This stage also includes establishing rules for performance measurement, how you\u2019ll store data, your production facilities, and regulatory compliance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-delivery-logistics\">Delivery\/Logistics<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This component encompasses all the steps for&nbsp;<a href=\"https:\/\/www.sage.com\/en-us\/blog\/reduce-lead-time-in-supply-chain\/\" target=\"_blank\" rel=\"noreferrer noopener\">reducing supply chain lead time<\/a>, including processing customer orders, distributing them, and transporting them.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Warehousing and inventory, or paying a service provider to manage both, are also included in this stage.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is also where you factor in trial and warranty periods and invoicing once the final product is delivered.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-returns\">Returns<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019ll need a smooth and easy process for customers to return defective products.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This will also include how to handle \u201cend of life\u201d products when the time comes for you to discontinue making, selling, and supporting certain products.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For defective products, this stage includes your company\u2019s established rules for monitoring performance, costs, and inventory for the returned product.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Identifying the product condition<\/li>\n\n\n\n<li>Authorizing returns<\/li>\n\n\n\n<li>Scheduling replacement product shipments<\/li>\n\n\n\n<li>Providing refunds<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">SCOR&nbsp;is not just about efficiency. It\u2019s about creating an adaptable, intelligent, and interconnected supply chain that can withstand disruptions and thrive in a complex global economy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The technology driving this evolution, collectively known as Industry 4.0, is what makes modern SCOR implementation possible.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-industry-4-0-technologies-for-supply-chain-management\">Industry 4.0 technologies for supply chain management<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">New technology is changing the way businesses <a href=\"https:\/\/www.sage.com\/en-us\/blog\/avoid-supply-chain-problems\/\" target=\"_blank\" rel=\"noreferrer noopener\">manage their supply chains<\/a>. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-us\/erp\/business-management-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">Business management solutions<\/a> allow managers to identify and act on time and cost-saving opportunities at every stage.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additionally, for wholesale distributors, <a href=\"https:\/\/www.sage.com\/en-us\/sage-business-cloud\/sage-x3\/product-capabilities\/supply-chain-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">robust enterprise resource planning (ERP)<\/a> solutions often include embedded SCM capabilities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This technology makes it easier to plan, forecast, and manage inventory alongside supply chain-related financial information.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-us\/blog\/future-manufacturing-free-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">Industry 4.0<\/a> refers to major innovations in technology that are coming into maturity at the same time, embedded by companies around the world, integrating the virtual and physical worlds to bring forth powerful new ways of working.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Examples of this technology include:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-ai-assisted-innovation\">AI-assisted innovation<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">AI enhances forecasting, identifies potential supply chain disruptions before they occur, and optimizes logistics for greater responsiveness. AI-assisted tools are at work right across the wholesale distribution supply chain, enhancing efficiency, accuracy, and decision-making through:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-demand-forecasting\">Demand forecasting<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\" id=\"h-demand-forecastingai-analyzes-historical-sales-data-and-market-trends-to-predict-future-demand-helping-businesses-optimize-inventory-and-reduce-overstock-or-stockouts\">AI analyzes historical sales data and market trends to predict future demand, helping businesses optimize inventory and reduce overstock or stockouts.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-route-optimization\"><strong>Route optimization<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Machine learning algorithms calculate the most efficient delivery routes, reducing fuel costs and improving delivery times.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-warehouse-automation\"><strong>Warehouse automation<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">AI-powered robots and automated systems speed up order picking, packing, and inventory management, increasing efficiency.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-supplier-risk-management\"><strong>Supplier risk management<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">AI monitors global data sources to detect potential supply chain disruptions, allowing businesses to react quickly.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-dynamic-pricing\"><strong>Dynamic pricing<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">AI adjusts pricing in real-time based on demand fluctuations, competitor pricing, and inventory levels.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This innovation boosts productivity, lowers costs, and increases customer satisfaction by ensuring faster, more reliable deliveries and better supply chain visibility.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-the-internet-of-things-iot-enabling-real-time-connectivity\">The internet of things (IoT): Enabling real-time connectivity<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">IoT connects physical assets\u2014machinery, vehicles, packaging, sensors\u2014to the internet, enabling real-time data collection and automated responses without human intervention.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It enables real-time communication, making it possible to initiate physical systems without human intervention and giving rise to smart cities. Sensors track shipments, monitor environmental conditions, and enable immediate responses to delays or quality issues.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">IoT lets you build digitized, connected supply chains\u2014fully integrated ecosystems that are fully transparent to marketing, product development, manufacturing, and distribution.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-leveraging-data-and-advanced-analytics-in-supply-chain-management\">Leveraging data and advanced analytics in supply chain management<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">With the Internet of Things comes a huge amount of data, and the way your business reads and analyzes that information is important.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In <a href=\"https:\/\/www.sage.com\/en-us\/industry\/wholesale-distribution\/\" target=\"_blank\" rel=\"noreferrer noopener\">wholesale distribution<\/a>, the availability of data on customer preferences and buying behavior can add new dimensions to the way you purchase and ship goods, offering better innovation, marketing, and decision-making.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-robotics-and-automation\">Robotics and automation<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Robots are already used extensively in the manufacturing world, deploying mechanical arms on assembly lines for example.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Industry 4.0 could see the contribution of robots massively increasing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-us\/blog\/innovating-in-distribution-with-smart-tech\/\" target=\"_blank\" rel=\"noreferrer noopener\">Smart technology in distribution<\/a>, such as smart factories where automated systems manage manufacturing with minimal human input, is already operational across the industry, powered by integrated computing and communication systems.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-simulations-3d-printing-and-augmented-reality\">Simulations, 3D printing, and augmented reality<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Already commonplace today, goods can be virtually modeled and tested, saving time and reducing the materials, efforts, and money spent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Through 3D printing, we can see the creation of customized, complex, and lightweight designs at remarkable speeds, while augmented reality offers a future where employees can be trained on the job far more effectively than with paper or monitors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When combined with cloud-based services and mobile apps, augmented reality and wearable technology can give workers critical information while leaving their hands free to perform their jobs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-achieve-unprecedented-control-and-resilience-in-your-distribution-network\"><strong>Achieve unprecedented control and resilience in your distribution network<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/images.go.sage.com\/Web\/SageGlobalInstance\/%7Ba5b58c0e-e7b9-4b42-b782-43e94a6363f1%7D_Find-the-right-ERP-for-distribution.pdf?utm_source=Eloqua&amp;utm_medium=email&amp;utm_campaign=SX3_2603_NCA_US_DistributionNorthAmericaNurture_Email07&amp;sFDCLastCampaignName=SX3_PDF_NCA_US_DistFutureTrendsEbook\">Download&nbsp;our e-book<\/a>, <em>Find the right ERP system for distribution: Why Sage leads the way<\/em>.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-fe48e5de wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/images.go.sage.com\/Web\/SageGlobalInstance\/%7Ba5b58c0e-e7b9-4b42-b782-43e94a6363f1%7D_Find-the-right-ERP-for-distribution.pdf?utm_source=Eloqua&amp;utm_medium=email&amp;utm_campaign=SX3_2603_NCA_US_DistributionNorthAmericaNurture_Email07&amp;sFDCLastCampaignName=SX3_PDF_NCA_US_DistFutureTrendsEbook\">Download e-book<\/a><\/div>\n<\/div>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Unify your data<\/strong>&nbsp;into a single, integrated platform, providing real-time visibility across all operations.<\/li>\n\n\n\n<li><strong>Foster seamless connectivity<\/strong>&nbsp;between suppliers, warehouses, and customers, ensuring efficient information flow.<\/li>\n\n\n\n<li><strong>Strengthen your supply chain resilience<\/strong>&nbsp;by proactively identifying and mitigating potential disruptions.<\/li>\n\n\n\n<li><strong>Drive transparent operations<\/strong>&nbsp;through actionable insights and data-driven decision-making.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/www.sage.com\/en-us\/industry\/wholesale-distribution\/\">Explore Sage for wholesale distribution<\/a><\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/manufacturing\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tManufacturing\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/supply-chain-management\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tSupply chain management\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/technology\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tTechnology\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-36758 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-distribution tag-supply-chain-management business_type-small-business business_type-growing-business industry-distribution industry-wholesale-distribution card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1349031655-1215x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1349031655-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1349031655-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1349031655-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-24T08:00:00-04:00\">June 24, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">7 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/reduce-supply-chain-costs\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tHow to reduce supply chain costs: 10 strategies that work\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tLooking to reduce supply chain costs? Explore 10 practical strategies to identify cost drivers, improve efficiency, and protect your margins without disrupting operations.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-30699 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-automation tag-digital-transformation tag-erp tag-inventory-management tag-supply-chain-management business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-order-management\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1355438061-684x384.jpg\" class=\"card-post__image\" alt=\"Lady carrying cartons\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1355438061-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1355438061-768x432.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1355438061-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-11T08:52:26-04:00\">June 11, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">13 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is order management?\u00a0\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-29062 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-boss-your-business tag-business-intelligence tag-growing-a-business tag-inventory-management tag-productivity tag-staying-competitive tag-supply-chain-management business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-an-order-management-system-oms\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1417607997-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1417607997-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1417607997-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1417607997-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-10T10:25:03-04:00\">June 10, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">19 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is an order management system?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-36674 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-distribution tag-erp tag-sage-x3 tag-supply-chain-management business_type-small-business business_type-growing-business industry-distribution industry-wholesale-distribution\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/supply-chain-integration\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Distribution_0305-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Distribution_0305-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Distribution_0305-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Distribution_0305-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-04T10:56:07-04:00\">June 4, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat\u00a0is supply chain integration and why does it matter?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-36541 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-distribution tag-sage-x3 tag-supply-chain-management business_type-small-business business_type-growing-business industry-distribution industry-wholesale-distribution\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/supply-chain-disruption\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1367106337-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1367106337-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1367106337-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1367106337-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T13:33:42-04:00\">June 2, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is supply chain disruption and how do you manage it?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn what supply chain management is, how the SCOR model works, and how Industry 4.0 technologies help distributors build connected, resilient supply 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