Information Integration, Globalization, Resource Sharing,Outsourcing, e-supply chain, Real time information challenges
1. INTRODUCTION1.1 Supply Chain Management
“Supply chain is defined as the network of organisations that are involved, throughupstream and downstream linkages, in the different process and activities that producevalue in the form of products and services delivered to the ultimate consumer”.
Supply chain management is defined as management of a network of retailers,distributers, transporters, storage facilities and suppliers that participate in the sale,delivery and production of a particular product”.
OPPORTUNITIES IN SCM
2.1 Information Technology in SCM
The internet wave and the emergence of e-business have highly influenced the traditionalsupply chains by enhancing co-ordination and communication between the partners. Theenabling technologies like EDI, Intranet, Extranet, Electronic market places, ERP, DRP,ware house management system, CRM,CPFR etc has tremendously improved theintegration among the buyers and sellers. Information technology has removed theroadblocks of information sharing making the firm smarter everyday. E-business hasenhanced both supply chain efficiency and responsiveness by sharing real timeinformation regarding inventory, shipment status and other key information like productdesign, product availability and demand between partners. The e-supply chain will havecustomers and suppliers seamlessly linked together, through out the world, exchanginginformation almost instantly. As a result of e-speed information sharing the companies areadopting pull strategy instead of push strategy. Fast access to relevant supply chaininformation can pay-off handsomely in lower product acquisition costs, lower procurementtransaction, less inventory, higher quality decision making, shorter lead times, profitablemeans of disposing unused excess inventory and better customer services. Effectivesupply chain management can impact and improve upon virtually all business processes,such as data accuracy, operational complexity reduction, supplier selection, purchasing,and warehousing and distribution. Other benefits include
Quicker customer response and fulfillment rates
Shorter lead time
Greater productivity and lower costs
Reduced inventory throughout the chain
Improved forecasting precision
Fewer suppliers and shorter planning cycles