Important of It in Supplychain Management

The Importance of Information Technology Applications in Supply Chain Management

Abstract

Supply chain management is a part of business processes that companies use to manage the processes of buying and selling between suppliers and customers. However, supply chain process is complicated and difficult to manage manually because companies have to contact both suppliers and customers who use different systems. Hence, information technology applications are necessary in order to reduce the problems and increase manufacturing processes efficiently. Supply chain process is divided into three categories: procurement processes, operations management, and sales and distribution which information technology applications can enhance these processes effectively. Procurement processes can be improved by using information applications so as to smooth buyers’ routine activities. Moreover, information technology applications also increase the ability of production processes in operations management by analyzing and controlling inventory data properly. Finally, information technology applications are useful for sales and distribution and decrease the complexity of delivery the finished product to customers as well.

Keywords: supply chain management, information technology applications

Introduction

Supply chain management is about controlling the entire activity of buying and selling in the supply chain flow from the beginning to the end. This process can be enhanced by using information technology applications. Information technology applications are useful for the supply chain management processes as well as increasing a company’s competitiveness. The purpose of this paper is to illustrate the importance of information technology applications to enhance the entire supply chain flow efficiently. The supply chain processes will be divided into three categories: procurement processes, operations management, sales and distribution.

Background

Business trade consists of...