Supply Chain Management and Information Technology
This paper will discuss how to achieve the benefits of cost reduction and profits through
the utilization of information technology and information systems by examining processes
between buyers and sellers, along with the supply chain.
As information systems technology advances, supply chain partners can now work
together to optimize performance. A basic enabler for coordination is information sharing,
which has been greatly facilitated by the advances in information technology.
In traditional supply chain management, orders are the only information exchanged, but
information technology now allows demand and inventory data to be quickly and
inexpensively shared. This paper discusses the importance of sharing data by utilizing
information systems.
What is supply chain management?
Supply chain management (SCM) is the control of materials, data, and funds as they move
in a process through to the end user. Supply chain management involves coordination and
transformation of flows both within a company and between companies. The ultimate goal
of any successful supply chain management system is to reduce inventory. Companies are
implementing sophisticated software systems to have a successful supply chain.
Supply chain management flows can be divided into three main flows: