Role of IT in Supply Chain Management

Topics: Supply chain management, Supply chain, Information Pages: 5 (3158 words) Published: May 4, 2015
International Journal of Modern Engineering Research (IJMER) www.ijmer.com

Vol.1, Issue.2, pp-747-751

ISSN: 2249-6645

IMPORTANCE OF INFORMATION TECHNOLOGY FOR
EFFECTIVE SUPPLY CHAIN MANAGEMENT
Prof. Himanshu S. Moharana1, Dr. J.S. Murty2, Dr. S. K. Senapati3, Prof. K. Khuntia1
1

(Raajdhani Engineering College, Bhubaneswar, Odisha) India
2
(Ex-Head, Design, RRL, Bhubaneswar, Odisha) India
3
(Professor, Dept. of Mech. Engg., IGIT, Sarang, Odisha) India

ABSTRACT
In order to survive and beat the
competition in today’s competitive world, one has
to manage the future. Managing the future
means managing information. In order to deliver
quality information to the decision-maker at the
right time and in order to automate the process
of data collection, collation and refinement,
organizations have to make Information
Technology an ally, harness its full potential and
use it in the best possible way. IT is beneficial for
cooperation and integration within the
stakeholders of the supply chain.

Keywords – Coordination, Cooperation,
Integration, Information Technology, SCM

I. INTRODUCTION
Information technology is revolutionizing the way,
in which we live and work. It is changing all aspects
of our life style. The digital revolution has given
mankind the ability to treat information with
mathematical precision, to transmit it with high
accuracy and to manipulate it. These capabilities are
bringing into being, a whole world within and
around the physical world. The amount of
calculation power that is available to mankind is
increasing at an exceptional rate and Computers and
communication is becoming integral parts.
At the organizational level, IT should assist
in specifying the objectives and strategies of the
organization. IT should also aid in developing and
supporting, and procedures to achieve them. At the
departmental level, IT must ensure a smooth flow of
information across departments, and should guide
organization to adopt the most viable business
practices. At this level, IT ensures seamless flow of
information across the different departments and
develops and maintains an enterprise – wide
database. This database will eliminate the need
of the isolated data islands that existed and in each
department and make the organization’s data
accessible across the departmental boundaries. This

enterprise–wide sharing has many benefits likes
automation of procedures, availability of high
quality information for better decision-making and
faster response times.

II. INFORMATION TECHNOLOGY AND
SUPPLY CHAIN
The supply chain management (SCM) is concerned
with the flow of products and information between
the supply chain members that encompasses all of
those organizations such as suppliers, producers,
service
providers
and
customers.
These
organizations linked together to acquire, purchase,
convert/manufacture, assemble, and distribute goods
and services, from suppliers to the ultimate and
users.
Today, information and technology must be
conceived of broadly to encompass the information
that businesses create and use as well as a wide
spectrum of increasingly convergent and linked
technologies that process the information with the
emergence of the personal computer, optical fiber
networks, the explosion of the Internet and the
World Wide Web. The cost and availability of
information resources allow easy linkages and
eliminate information-related time delays in any
supply chain network. This means that organizations
are moving toward a concept known as Electronic
Commerce, where transactions are completed via a
variety of electronic media, including electronic data
interchange (EDI), electronic funds transfer (EFT),
bar codes, fax, automated voice mail, CD-ROM
catalogs, and a variety of others. The old “paper”
type transactions are becoming increasingly
obsolete. Leading-edge organizations no longer
require paper purchase requisitions;...
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