Supply Chain Management

Chapter 17 : Information Technology in a Supply Chain

Value of Information Flow in a Supply Chain

Use of Information in a Supply Chain

Inventory Transportation Facilities

Changing Role of Information Technology in a Supply Chain

Role of IT in Decision Making

Strategic Level IT Systems Tactical Planning Level IT Systems
Operational Level IT Systems

IT Solutions for SCM

Electronic Data Interchange
Internet Technologies
Enterprise Resource Planning

Supply Chain Management Software

Supply Chain Planning
Strategic Level Planning Applications Tactical Level Planning Applications Operational Planning Applications Supply Chain Execution Systems

Process of Implementing an IT- Enabled SCM System

Evaluating Organizational Requirements
Evaluating the External Environment Identification of IT Infrastructure Actual Implementation of the IT System
Scaling up the System
Implementation Issues.

Chapter Summary

Information flow is an important flow in the supply chain. Without the seamless flow of information, the supply chain cannot operate effectively. Information flow enables coordination between the members of the supply chain. Through the use of information systems, trading partners get access to and exchange information.

IT systems also support the decision making processes of a firm. In this chapter we discussed the importance and use of information in the supply chain and also how information technology makes the supply chain more efficient and responsive. IT systems have evolved from mere transaction processing systems to the decision support systems, which exist at present.

We discussed the IT options available for supply chain operations. These are EDI, Internet technologies, ERP applications and supply chain management software. EDI enables the electronic exchange of key business documents between trading partners. Internet technologies include intranet, extranet, and e-business applications. Intranet is any private network set up within an organization.

Extranet is any private network where customers, suppliers and the internal departments are linked. Later we discussed ERP applications and their features. ERP is a transaction processing system, which enhances information visibility across the firm. We went on to a discussion of SCM software. SCM software can be divided into two components: supply chain planning software and supply chain execution software. Finally we looked at how an IT-enabled supply chain management system can be implemented.

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