Final answer:
Digital technologies enhance supply chain management by providing real-time transparency, improving efficiency through streamlined processes, and fostering better integration and collaboration across the supply chain.
Step-by-step explanation:
Three advantages of digital technologies in Supply Chain Management (SCM) include enhanced transparency, improved efficiency, and better integration of complex systems. First, digital tools such as the Global Positioning System (GPS) and Geographic Information Systems (GIS) provide real-time data which allows for precise tracking of products throughout the supply chain. These technologies ensure that companies can identify and address bottlenecks and inefficiencies promptly.
Secondly, advancements in computing and telecommunications have revolutionized SCM by making long-distance management of production and sales more streamlined and cost-effective. With the aid of digital solutions, logistic processes are significantly expedited, leading to faster turnaround times and reduction in holding costs.
Finally, the integration of digital technologies has facilitated greater collaboration and communication across the supply chain. Integration platforms and shared databases allow for a seamless flow of information, thereby enabling alignment and coordination among partners. This improves overall supply chain agility and responsiveness to market changes.