THE IMPORTANCE OF INFORMATION SYSTEMS IN GLOBAL SUPPLY CHAIN MANAGEMENT.

Topics: Supply chain management, Supply chain, Management Pages: 6 (1410 words) Published: August 14, 2014
JOM0 KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY

TASK: DISCUSS THE IMPORTANCE OF INFORMATION SYSTEMS IN GLOBAL SUPPLY CHAIN MANAGEMENT.

SUBMITTED TO: MR.PATRICK MWANGANGI
ABSTRACT
Supply chain management information system (SCM IS) plays an increasing critical role in the ability of firms to reduce costs and increase the responsiveness of their supply chain. This paper focuses on: supply chain management information systems, initial research model and theoretical foundations, internal integration ,external integration ,strategic information systems contribution to supply chain integration in line with: transaction execution, collaboration and coordination and decision support and finally E-commerce technology contribution to procurement functions. ABREVIATIONS

ASP: Advanced Planning Scheduling
BACS: Bankers Automated Clearing Services
EDI: Electronic Data Interchange
EFT: Electronic Fund Transfer
E-POS: Electronic Point Of Sale
IT: Information Technology
SCM IS: Supply Chain Management Information Systems.
1.1 INTRODUCTION
The present business environment is increasing competitive and both researchers and practitioners are constantly engaged in proposing ways to thrive in the environment. There are many different measures business have engaged in and many others being proposed to survive in the volatile business environment. For example, Doz and Kosonen (2008) suggested openness to new evidence, flexibility, readiness to access past choices and willingness to change course in relation to new developments as necessary factors I the current environment. In addition, collaboration with different partners, such as, suppliers, customers, competitors, universities, consultants and formulation of supply chains (SC) are such examples of measures to respond to the environment pressures. A supply chain is a group of companies which collaborate to achieve mutually agreed goals (Christopher, 2000).

2.1 SUPPLY CHAIN MANAGEMENT INFORMATION SYSTEMS
Supply chain management information systems (SCM IS) play an increasing critical role in the ability of firms to reduce costs and increase the responsiveness of their supply chain (Chopra and Meindl,2001; Dagenais and Gautsch:2000: Lee 2000). SCM IS is information systems (IS) used to coordinate information between internal and external customers, suppliers, distributors and other partners in a supply chain. Individual studies have explored the benefits and capabilities of different SCM IS such as Electronic Data Interchange (EDI) (Lee et al, 1999: Mukhopadhyay et al, 1995), Electronic Marketplace (Dagenais and Gautschi 2002; Kaplan and Sawhney 2000), or Enterprise Resource Planning (ERP) (Green 2001) systems. However, there are few empirically derived models suitable for analysing the organizational capabilities supported by the range of SCM IS alternatives. As a result, firms face complex and risky decisions analysing and selecting an appropriate SCM IS solution or ensuring that their implemented systems are aligned with their business strategies (Reddy and Reddy, 2001). An organisational capability is the ability of an organisation to achieve its goals by leveraging its various resources (Ulrich and Hake 1990). IS capabilities are organisational capabilities which are enabled by IS. Similarly, SCM IS capabilities are organisational capabilities enabled by SCM IS. Over the years, research on the evaluation of IS has increased in abstraction from matching IS capabilities with functional requirements (lucas, 1981), to desired architecture (Allen and Boynton, 1991), to competitive strategies (Henderson et al, 1996). Although strategic alignment has received considerable attention in recent studies of overall IS strategy (Kearns and Lederer, 2001; Reich and Benbasat, 2000; Sabherwal and Chan, 2001), models have not yet been developed to a sufficiently detailed level to examine the...
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