An analysis of the importance of technology in supply chain management systems

3 ways technology is transforming supply chains

Supply chain management was then further defined as the integration of supply chain activities through improved supply chain relationships to achieve a competitive advantage. Cisco is not the only company to recognize the shift toward digital. The characteristics of this era of supply chain management include the need for large-scale changes, re-engineering, downsizing driven by cost reduction programs, and widespread attention to Japanese management practices.

The marketing department, responding to customer demand, communicates with several distributors and retailers as it attempts to determine ways to satisfy this demand.

Here are a few examples of the importance of technology to supply chain, manufacturing and procurement services: If resources - people, money, machinery, facilities, material and information - are to be used wisely, supply chain management personnel must be familiar with computer technology, quantitative methods, and planning and problem-solving techniques useful in analyzing business systems.

If we keep an open mind, we can always do better by digging deeper into data as well as by thinking about a predictive instead of reactive view of the data.

Not allowing for trial and error in detail design process. The ability to quickly obtain and deploy this domain-specific supply chain expertise without developing and maintaining an entirely unique and complex competency in house is a leading reason why supply chain specialization is gaining popularity.

Traditionally, companies in a supply network concentrate on the inputs and outputs of the processes, with little concern for the internal management working of other individual players. As The Wall Street Journal reported, Cisco Systems made Rebecca Jacoby, former CIO, the senior vice president of operations and put the well-being of the supply chain in her hands — a move that highlights the importance of technology in supply chain management.

The cost of information is decreased due to the increasing rate of technologies. The measurement of performance focuses on total system efficiency and the equitable monetary reward distribution to those within the supply chain.

Four fundamental mistakes made when determining information requirements are as follows: At its core, the common attribute of Web 2. In this case the member develops and shares a network interlinking itself and any number of lower level participants with whom it has an established business relationship.

It also includes coordination and collaboration with channel partnerswhich may be suppliersintermediariesthird-party service providers, or customers. Electronic Data Interchange EDI refers to computer-to-computer exchange of business documents in a standard format.

First, as an outcome of globalization and the proliferation of multinational companies, joint ventures, strategic alliances, and business partnerships, significant success factors were identified, complementing the earlier " just-in-time ", lean manufacturingand agile manufacturing practices.

The benefits of EDI are: Logitility planning solution was recently introduced to provide a programme capable managing the entire supply chain.

In this case a member develops and shares a single application such as an inventory query or order processing system.

It is used in many industries to allow companies and organization to make better business decisions and in the sciences to verify or disprove existing models or theories. This era of supply chain evolution is characterized by both increasing value added and cost reductions through integration.

There has been a general shift of power from manufacturers to retailers over the last two decade. Viewing system as functional instead of cross-functional.

However, with the complicated interactions among the players, the network structure fits neither "market" nor "hierarchy" categories Powell, February SCM 2. Specialization era phase II: As a consequence, costs must be lowered throughout the chain by driving out unnecessary expenses, movements, and handling.

An example of this kind of supply chain is Tesco. This article appears to contain a large number of buzzwords. Supply chain specialization enables companies to improve their overall competencies in the same way that outsourced manufacturing and distribution has done; it allows them to focus on their core competencies and assemble networks of specific, best-in-class partners to contribute to the overall value chain itself, thereby increasing overall performance and efficiency.

Recent development in technologies enables the organization to avail information easily in their premises. These technologies are helpful to coordinates the activities to manage the supply chain.

In addition, they need excellent communication skills to work with everyone from those on the assembly line to those in top management. They also share the joint belief that they and all other supply chain participants will be better off because of this collaborative effort.

Supply chain management

In particular, SCIT has multiple characteristics, and each characteristic is linked to different performance indicators. First, satisfying in fact pleasing customer has become something of a corporate obsession.The supply chain is a great place to use analytic tools to look for a competitive advantage, because of its complexity and also because of the prominent role supply chain plays in a company’s cost structure and profitability.

In commerce, supply chain management (SCM), the management of the flow of goods and services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.

IMPORTANCE OF INFORMATION TECHNOLOGY FOR EFFECTIVE SUPPLY CHAIN MANAGEMENT. International Journal of Modern Engineering Research (IJMER) coded, and stored in databases, and electronically ordered. With the application of the appropriate information systems, the need to constantly monitor inventory levels.

Technology can help to simplify your supply chain management, which will enable your business to operate more efficiently, give you more visibility and control over your inventory, and help to reduce your operational costs.

The importance of information in an integrated supply chain management environment: Prior to s the information flow between functional areas with in an organization and between supply chain member organizations were paper based. As The Wall Street Journal reported, Cisco Systems made Rebecca Jacoby, former CIO, the senior vice president of operations and put the well-being of the supply chain in her hands — a move that highlights the importance of technology in supply chain management.

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An analysis of the importance of technology in supply chain management systems
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