Report
Executive Summary
This report is structured to provide a deep and thorough understanding of Information Technology (IT) integration in the Supply Chain Management (SCM) of the organisation. Supply chain management has long been considered as the way of effectively managing the business operations. However, with the development of new technologies and systems companies started to automatize their SCM network by adopting new and latest technologies. Hershey also did the same for improving its overall supply chain network. However, it did so without pursuing any planning or systematic operational strategy due to which it had to suffer the consequences. For improving its shipping and logistic system, it invested a huge amount in implementing IT system from three of the famous IT companies. While doing so it ignored the other two important aspects of supply chain i.e. distribution and delivery that got disruption due to lack of attention. Thus, the report has critically analysed how the operations strategy lead to an effective management of the supply chain model. Moreover, the IT integration in to the organisational supply chain is also discussed in detailed by highlighting Hershey as the example. In the end, a critical evaluation of comparison between Dell and Hershey’s IT enabled SCM has been conducted to show the discrepancies in the Hershey’s supply chain. The analysis showed that Dell due to its effective change management and proper strategic implementation showed potential benefits of IT enabled SCM. However, Hershey lack behind in improving its SCM network despite of implementing the IT systems in its SCM.
S. # | Table of Contents | Page # | 1 | Executive Summary | 2 | 2 | Introduction | 4 | 3 | Question 1 | 5 | 4 | Question 2 | 7 | 5 | Question 3 | 10 | 6 | Conclusion | 13 | 7 | References | 14 |
Introduction
The changing needs and demands of the business and the increasing rivalry of the market is putting pressure on firms to strengthen
This report is structured to provide a deep and thorough understanding of Information Technology (IT) integration in the Supply Chain Management (SCM) of the organisation. Supply chain management has long been considered as the way of effectively managing the business operations. However, with the development of new technologies and systems companies started to automatize their SCM network by adopting new and latest technologies. Hershey also did the same for improving its overall supply chain network. However, it did so without pursuing any planning or systematic operational strategy due to which it had to suffer the consequences. For improving its shipping and logistic system, it invested a huge amount in implementing IT system from three of the famous IT companies. While doing so it ignored the other two important aspects of supply chain i.e. distribution and delivery that got disruption due to lack of attention. Thus, the report has critically analysed how the operations strategy lead to an effective management of the supply chain model. Moreover, the IT integration in to the organisational supply chain is also discussed in detailed by highlighting Hershey as the example. In the end, a critical evaluation of comparison between Dell and Hershey’s IT enabled SCM has been conducted to show the discrepancies in the Hershey’s supply chain. The analysis showed that Dell due to its effective change management and proper strategic implementation showed potential benefits of IT enabled SCM. However, Hershey lack behind in improving its SCM network despite of implementing the IT systems in its SCM.
S. # | Table of Contents | Page # | 1 | Executive Summary | 2 | 2 | Introduction | 4 | 3 | Question 1 | 5 | 4 | Question 2 | 7 | 5 | Question 3 | 10 | 6 | Conclusion | 13 | 7 | References | 14 |
Introduction
The changing needs and demands of the business and the increasing rivalry of the market is putting pressure on firms to strengthen
References: Operations Strategy Framework Source: (Tan & Matthews, 2009) Question 2 There is a significant amount of literature available on the implementation of Information Technology (IT) in SCM (Grieger, 2004 and Johnson & Whang, 2002) IT Decision Support Mattia (2011) articulated that the role of IT decision support is quite obvious in integration of key supply chain partners because it provides a complete system to collaborate with the supply and distributors in a timely manner Improved Decision Making for Fulfilling Customer Demands Wu and Pagell (2011) stressed that the implementation of IT based decision support in SCM also enables the firm to perform its transactions in an efficient manner Auramo, J., Kauremaa, J. & Tanskanen, K. (2005) ‘Benefits of IT in supply chain management: an explorative study of progressive companies’, International Journal of Physical Distribution & Logistics Management, (2), 82 - 100 Dong, S., Xu, S Grieger, M. (2004) ‘An empirical study of business processes across Internet-based electronic marketplaces – a supply chain management perspective’, Business Process Management Journal, 10(1), 80-100 Guide Jr., V Håkansson, H. & Persson, G. (2004) ‘Supply chain management: The logic of supply chains and networks’, The International Journal of Logistics Management, 15(1), 11-26 Ivanov, D., Sokolov, B Johnson, M. E. & Whang, S. (2002) ‘E-business and supply chain management: an overview and framework’, Production and Operations Management, 11(4), 413-423 Liu, X., Akram, S Manuj, I. & Sahin, F. (2011) ‘A model of supply chain and supply chain decision-making complexity’, Emerald, 41 Mattia, A Narasimhan, R., Kim, S. W. & Tan, K. C. (2008) ‘An empirical investigation of supply chain strategy typologies and relationships to performance’, International Journal of Production Research, 46(18), 5231-5259 Qi, Y., Boyer, K Sridharan, U. V., Caines, W. R. & Patterson, C. C. (2005) ‘Implementation of supply chain management and its impact on the value of firms’, Supply Chain Management: An International Journal, 10(4), 313–318 Stadtler, M Tan, K. H. & Matthews, R. (2009) Operations Strategy in Action: A Guide to the Theory and Practice of Implementation. Cheltenham: Edward Elgar Publishing Ltd. Toyin, A. I. (2012) ‘Supply Chain Management (SCM) Practices in Nigeria Today: Impact on SCM Performance’, European Journal of Business and Social Sciences, 1(6), 107 – 115 Wu, Z