The role of information systems in Supply Chain Management.

The role of information systems in Supply Chain Management Introduction The purpose of this essay is to explore and evaluate the various approaches that can be taken to facilitate the management of supply chains. Supply Chain Management - A terminological background The Institute for Supply Chain Management has defined supply management as the identification, acquisition, access, positioning and management of resources an organisation needs or potentially needs in the attainment of its strategic objectives. The essence is a shift of focus away from business units such as warehouses or factories to a more holistic view of a supply chain. For a given company this might include parts suppliers, manufacturers, transport, logistics and†¦show more content†¦It need not stop there either, systems are available to transfer information between various trading partners; systems such as these are known as inter-organisational information systems (IOIS). The virtual corporate integration that results when such systems are adopted can lead to a reduction in what has been termed supply chain uncertainty. All companies within the IOIS will have a greater awareness of the state of play at any given time resulting in increased operational efficiency. The company that has access to this information is also going to be able to offer value added services to its customer such as order tracking. New approaches to manufacturing become possible such as Just-in-Time (JiT) and Build-to-Order (BTO). A large company is now able to react to a change request from a customer, giving more added value. Inventory Carrying unsold inventory costs U.S. businesses about $332 billion per year. As can be seen from the above statistic there is huge scope for clawing back lost potential revenue in this area. If, for example, at the end of a supply chain, company A is supplying vendor B; it is quite possible that both companies might keep a reserve surplus stock or worse still, they may both run out of stock. The solution here, as I hinted at earlier, is to share information between the companies or even to integrate systems. This has been implemented in a number of different ways; we shall examine VMI (VendorShow MoreRelated Apply Chain Management vs Traditional Mananagement Systens Essay1406 Words   |  6 Pages A. Approach The use of information technology by firms that want to gain competitive advantage has increased dramatically in the last twenty years. Large and small firms have been utilizing information systems to connect their internal business functions and the company’s activities to stakeholder such as suppliers and customers. (FORMAN WEB 13). 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In case there was any disruptionRead MoreThe Supply Chain Of Honda Essay1334 Words   |  6 PagesFrom above, the process of Honda’s supply chain in purchasing is very clear. Firstly, the purchasing division of Honda signs a purchase order with the component suppliers and then these suppliers determines the needed raw materials and sends a demand to Honda after receiving the order. The next is that Honda trading classifies these orders into different materials and signs a purchasing order with these raw materials factor ies. After then these factories send these raw materials to suppliers. FinallyRead MoreWal Mart s Supply Chain Management Essay1510 Words   |  7 Pages WAL-MART’S SUPPLY CHAIN MANAGEMENT TECHNIQUES Praseeda Sasanka Pisipati NUID :94862513 Table of Contents: Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦3 A Brief History of Supply Chain Management (SCM)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦....4 How Supply chain management influenced the retail business †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..5 Gartner hype cycle and scope of SCM trends†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.7 Supply Chain Management in the Gartner hype cycle†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦