Information Technology Competitive Advantage
According to Laudon and Laudon (2007), more than 23 million managers and 113 million workers in the United States’ labor force rely on information systems to conduct business. IT offers the supply chain organization a competitive advantage by achieving operational excellence, customer and supplier intimacy, and improved decision making. IT allows the supply chain to respond to customers in real time, thus all improvements add up to higher sales and higher profits to the organization (Laudon and Laudon 2007).
Reducing and Controlling Costs
Gendron (2006) states, “Studies by the Aberdeen Group have shown that non-production materials like office supplies, computer equipment and maintenance, repair and operating provisions (MRO) can account for 30% to 60% of a company’s total expenditures yet they remain poorly controlled and costly to process at most organizations” (p. 91). Information technology permits the supply chain organization to control and process purchasing requisition for supplies efficiently and at reduced costs. Amazon.com, though is an e-commerce company, is a company that uses IT to track orders, place orders from suppliers, and also tracks...