Supply Chain
Information Systems
Information systems are essential to
managing a supply chain. The supply chain information systems rely on either
EDI (Electronic Data Interchange) or the Internet to transmit information
within the supply chain. A valuable initial element in managing a supply chain
is developing supply chain information systems. The concept of supply chain
management is built on functional integration, which is supported and often
catalyzed by information technology.
One of the components of the
implementation of supply chain management is information sharing through
two-way communication between partners within a supply chain. The activities of
information generation, storage, and utilization in individual firms in a
supply chain are essential to implement supply chain management. Member of a
supply chain need real-time visibility of performance data across the entire
supply chain.
In Dell computer's direct relationship
with its customer create valuable information that, in turn, allows the company
to coordinate its entire supply chain back through manufacturing to product
design with other firms.
Conclusion
World is shrinking day-by-day with
advancement of technology. The expectations of customers are rising and the
companies are prone to more and more uncertain environment. Under this
uncertain & volatile environment, companies will found that their
conventional supply chain integration will have to be expanded beyond the
boundaries of their own organization. In the 21st century companies will have
to start using IT for their strategy development in contrast to the earlier
situation when IT was aligned with existing business strategies to gain
competitive advantage. New developments such as the proliferation of Internet
Technology, World Wide Web, Electronic Commerce, etc., will change the way a
company is required to do business. The companies must also realize that they
must harness the power of technology to collaborate with their business
partners as never before. It can be concluded that a proper IT strategy
integrated with a supply chain strategy can turn around a company's fortune.
About the Author:
The author holds degree
in M.Phil in Commerce from Periyar University, Salem. She has also participated
in different National Seminars and presented numerous papers and has also
authored a book named "Banking Theory, Law and Practices.
Source:
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