Final answer:
Information technology, notably RFID, can enhance supply chain efficiency and effectiveness by increasing visibility and inventory management. However, its implementation in underdeveloped countries like Togo is hampered by infrastructure challenges. Technological diffusion, such as increased mobile phone use, has begun to transform supply chain dynamics, enabling better market access and mobile banking.
Step-by-step explanation:
The impact of information technology on supply chain efficiency and effectiveness is particularly significant when examining the use of RFID technology in underdeveloped countries such as Togo. Advanced technologies like RFID can greatly improve supply chain processes by enhancing visibility, reducing waste, and improving inventory management. However, the application of such technologies in underdeveloped countries faces challenges such as inadequate infrastructure, limited electricity, and a lack of education and access to technology.
Despite these challenges, the use of information technology in supply chains can be transformative. For example, the growth in mobile phone usage has already shown potential for positive change. Access to mobile technology enables fishers and farmers to verify market demand before making costly trips to markets. It also facilitates mobile banking and secure money transfers, which can significantly affect the economics of rural market vending. As companies commit to improving their labor policies, technological interventions can also enhance labor rights and working conditions within supply chains.
Furthermore, technological globalization and technological diffusion lead to economic growth and can help alleviate poverty by bringing new innovations to traditional farming methods or by enabling low-tech markets to operate more efficiently. Technological advancements such as mobile banking can result in increased competition, lower prices, and improved information sharing among stakeholders in the supply chain.