Role of Ict in Scm

Topics: Supply chain management, Supply chain, Management Pages: 12 (4361 words) Published: September 16, 2012
Role of ICT in Supply Chain Management including E-Commerce, M-Commerce, e-SCM, ITESCM

School of Management Studies

Abstract: Supply chain management (SCM) is concerned with the flow of products and information between supply chain members’ organization. Companies are attempting to find ways to improve their flexibility and responsiveness and in turn competitiveness by changing their operations strategy, methods and technologies that include the implementation of SCM paradigm. The emergence of Information and Communications Technologies (ICT) is reshaping the business models and intensely interlining enterprises across its internal as well as external value chain. In this paper, date regarding the interrelation between ICT and SCM from some major components and applications of ICT perspective is presented. E-Commerce, M-Commerce, e-SCM and ITESCM are some of the ICT enabled business strategies used for optimization of all the activities of the organization. With the development rate to technology and adaptation of organizations to it will lead to more innovations and new models of SCM. Key Words: supply chain management SCM, E-Commerce, M-Commerce, e-SCM, ITESCM


Supply Chain Management is about managing the flow of information, materials, services and money across any activity, in a way which maximizes the effectiveness of the process. SCM assists business organizations to compete in the dynamic international market. With proper implementation of SCM, organizations have been able to add value, reduce cost or reduce the response time in various parties involved in the manufacturing supply chain. Organizations that have implemented SCM have already gained an advantage over its other competitors; this has forced many more industries to look in to the implementation of SCM. Organizations increasingly find that they must rely on effective supply chains, or networks, to compete in the global market and networked economy During the past decades, globalization, outsourcing and information technology have enabled many organizations to successfully operate solid collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities. Traditionally, companies in a supply network concentrate on the inputs and outputs of the processes, with little concern for the internal management working of other individual players. Changes in the business environment have contributed to the development of supply chain networks thereby increased efficiency.

Electronic commerce or e-commerce refers to any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact. The terms e-business and e-commerce are now often seen and used interchangeably. E-commerce is only part of e-business because, e-business refers to all online business transactions including selling directly to consumers (e-commerce), dealing with manufactures and suppliers and conducting interactions with partners. Information exchange via database is also done in e-commerce.

In the emerging global economy, e-commerce and e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic development. The integration of information and communication technology (ICT) in business has revolutionized relationships within organizations and those among organizations and individuals. The use of ICT in business has enhanced productivity, encouraged greater customer participation, and enabled mass customization, besides reducing costs.

The e-Supply Chain combines the concepts of electronic business (e-business) and supply chain management (SCM), and depicts how trade channel members are working together to optimize resources and opportunities. The e-Supply Chain will have customers and suppliers seamlessly linked together, throughout the world,...
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