Competition

IT IN SUPPLY CHAIN MANAGEMENT

ABSTRACT

Supply chain management (SCM) refers to the management of activities that procure raw materials, transform those materials into intermediate goods and final products, and deliver the products through a distribution system to the end-user. There are numerous key factors that play an important role in the successful management of supply chains in today's dynamic environment. Among those are: paying utmost attention to the needs and desires of the end customer, designing flexibility into the supply chain for rapid response to changing conditions, utilizing the latest communication and logistics technologies, employing a sound measurement system for making the right decisions, and always communicating through the total supply chain.

The strategic and technological innovations in supply chain will impact on how organizations buy and sell in the future. However clear vision, strong planning and technical insight into the Internet's capabilities would be necessary to ensure that companies maximize the Internet's potential for better supply chain management and ultimately improved competitiveness. Internet technology, World Wide Web, electronic commerce etc. will change the way a company is required to do business. Contribution of IT helps to restructure the entire distribution set up to achieve higher service levels and lower inventory and lower supply chain costs. The broad strategic directions which need to be supported by the IT strategy are increasing of frequency of receipts/dispatch, holding materials further up the supply chain and crashing the various lead times. IT contributions and implementations are discussed. Fundamental changes have occurred in today's economy. These changes alter the relationship we have with our customers, our suppliers, our business partners and our colleagues. It also describes how IT developments have presented companies with unprecedented opportunities to gain competitive advantage. So IT...