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SUBMITTED BY ABHINAV CHANDRA (A01010909359) MBA(Gen) 2009-11
It is a functional net chain surrounding key enterprises to connect suppliers. Starting from the perspective of supply chain management. modern competition has already become the competition among enterprises and their supply chains rather than the competition among enterprises only. In the whole functional net chain. the management of supply chain with information as its core cannot be realized. packaging and transportation to get benefit for the relevant enterprises. which refers to the management in transferring the collected raw . namely material flow. retailers and final customers. Earlier view is that management of supply chain is an internal process in producing enterprise. but also an increment chain from which material increases its value in the process of production. information. The communication among all the parts in the supply chain system as well as the dispatching of basic resource depends on information exchange.LEARNING OBJECTIVES: Supply chain management has become an important way for modern enterprise to get competitive advantage in competition and information technology greatly promotes its development. General Introduction of Supply Chain Management Supply chain is a kind of new organization structuring model based on enterprise cooperation. which does not come from some enterprises. this paper studies the application of information technology in supply chain management and its influence. wholesaler. capital flow and information flow. but from the coordinated ability among the whole supply chain members and the integration of the resource. manufacturers. capital from suppliers to customers. Without the support of highly advanced information network technology. The management of supply chain directly determines whether they can get competitive advantage in competition. IT is not only a chain connecting material. three different flows. This paper discussed the present application of modern information technology in supply chain management and its function. INTRODUCTION: With the development of information technology and economic globalization.
the management of capital flow between enterprises as well as the management of interactive information flow. It integrates different enterprise to increase the efficiency of the whole supply chain and lays emphasis on the cooperation between different enterprises. material flow is not the only content. controlling of supply chain producing. and wholesalers to final customers into an integrated management model through the information flow. It tends to be defined as: the management of supply chain is a transforming process from raw material to finished products of production. thus making each enterprise to share the task of purchasing. producing. In management of supply chain. And the information technology acts as a necessary role. enhancing the competitive strength of enterprise. producers. It shows an integrated concept and method aiming to get the balance between high customer service and low investment as well as low cost and low investment. wholesaling as a coordinated organic unit. retailers. cooperation and controlling of capital flow and information flow are also included.material and spare parts to manufacturing customers by production and sales.´ Phillip thinks that: ³the management of supply chain is not another name of management of suppliers. the demand estimate and planning for product on supply chain. tracking. lowering stock and improving working efficiency. thus elevating service. the management of relationship between strategic suppliers and partners. equipment and the plan. the planning. assembly and wholesaling among different enterprises. . Evens thinks that: ³the management of supply chain is to connect suppliers. designing of products and management. which can make the enterprise to accustom new environment. The later concept of management supply chain lays emphasis on the connection with other enterprises and the external environment of supply chain. It concerns with the following questions the pinpointing of key enterprise. but a new strategy. the material management within and between enterprises. material flow.´ The management of supply chain makes the enterprise on joint point as a part that cannot be cut. It is important to design and run an effective supply chain. effectively lower cost. For example.
which is used to turn around again. traditional enterprise model is material flowing from supplying source to demand source and then sell the products and the end of demand to get capital. aiming to optimize the whole resource to benefit other enterprises on the supply chains to get ³win-win deal´ and all-win deal.Application of Information Technology in Supply Chain Management To general enterprises. Only when advanced . Its operation model is centered with key enterprise. covering the whole process from suppliers to customers.
The application of bar code technology resolves the data entering and data collecting problems. In supply chain flowing system. wholesalers and final customers can be organically bound together. business glow in supply chain can be improved and regularized. producers. cost reduced and supply time shortened. quick recognition technology and computer management technology are all the necessary technology for realizing computer management and electrical data exchanging. which can greatly improve the efficiency of flow and provide support for management of supply chain. code-shaped designing technology. It includes code-editing technology. EDI system is an information system for data exchange and data resource sharing. material flow is characterized by plenty and high-speed.information technology has been gained. retailers. suppliers. By using EDI. Bar code technology: Bar code technology is an important and quick information collecting technology. stores and controls data. which is the fundamental difference from that of traditional enterprise adopts. The application of information technology includes the following aspects Electronic data interchange (EDI) Electronic Data Interchange (EDI) is an electrical information applicable technology based on computer and data communication network technology. The great effects of information technology serves as basis for effectively managing the supply chain and watching it over. can the supply chain concerning resources and links timely and accurately collects. Utilizing EDI to eliminate the blocks between functional departments so as to make the information smoothly and reliably moves between different departments. . information can be obtained quickly to make between communication contacts and to better service for customers. by EDI. At the same time. thus decreasing low effective work and business with no increasing value.
In this way. the automatic optimizing can be realized to elevate the whole efficiency of the whole supply chain. In the deciding questions concerning in supply chain management. simulating human experts to solve the problem in this area. thus promoting data sharing and improving cooperation between enterprises. The application of expert system and intelligent as well as CIM can effectively eliminate the block between material flow and information flow.Expert system / artificial intelligence: Expert System is an intelligent computer programming system. decision-making is an unavoidable technical problem. .
more quickly to deliver sales and stocking information to improve service. . For example. the application of information technology needs rather big investment. Bymore timely confirm task.Communication technology The basic advantage of communication technology lies in that it can improve the service to customers. However. the application of radio. but the investment cost is rather high. satellite communication and picture dealing technology can effectively overcome the problem brought by products moving and material dispersing.
It pays attention to database integration as well as data seeking and provides SCM for intelligent decision-making information . analyzing cost and decision-making. thus effectively planning. heighten the quality of data. which is hard fort database technology. customer material. database technology can better manage stocking information. Database warehouse resolves the new problem in business activities. In the supply chain management.Database technology / data warehouse technology Database technology is the technical basis for enterprise informationalization.
They provide convenient. by using computer and network technology. stocking management. shorten term and improve information management and improve decision-making.Network technology / electronic business Internet provides a basic instrument for sharing information. Electronic business can improve the efficiency of the supply chain from system management. From quality. transportation management and information flows. It reduces transition cost. Electronic business. timely and low cost sharing information for member in supply chain to reduce cost and improve the efficiency of service. realize the commercial activities between products and service . . in Internet environment. cost and response time to improve enterprise management and enhance competitive ability so as to rapidly satisfy the customers. Both intranet and Internet are the support for normal running for supply chain.
Companies always can carry out virtual business and establish virtual marketing network by using IT. Many companies at home or abroad have already used modern electronic means for information transaction and customer service and also make the most of outsides resource through business outsourcing. 3C company sales its MODEMS product. Nowadays with the Internet widely applied. And IT. which will significantly impact on the whole supply chain. so that it¶ll improve the efficiency of marketing channel and enhance customer satisfaction together with retailers. as soon as the product upgrades each time. IT helps supply chain managers establish new customer relations by forming information flow and knowledge flow with their customers and suppliers. (3) Change the composition of supply chain and achieve the unity of merchandise flow and logistics. successful companies always utilize IT to support and develop their business strategy. which makes an interactive. the development of IT has totally changed its sale manner. in order to know the requirements of the customer and market better. the utilized tendency of product and service is changing their manner of circulation and usage. (2) Benefit to broaden and develop an efficient marketing channel. When customers buy MODEMS. has become an effective way to help companies gain the information about the requirements of the customer and market. the border between product and service has become more and more vague. such as Internet. with e-commerce flourished and third . can establish the order and inventory system of retailers for continuously inventory supplement and marketing conduction.IT Impact on Supply Chain Management Information plays a leading and optimizing role in the whole operations of supply chain. For instance. which gets rid of traditional supply chain of product sale. Such IT starts to rebuild value chain between companies. (1) Establish new customer relations. The development of IT has changed the way that company gains competitive advantages through supply chain management. customers can buy it directly through Internet. co-operating with its distributors. timely and integrated information communication in the whole supply chain from suppliers to customers. (4) Rebuild value chain between companies or company leagues. And through the application of Internet company. so they can expand their own developing space and keep their limited resource focusing on the core ability.
In this way. improving ordering and sending effectiveness and timely answering the questions from customers and improve competition edge. To get advantage in competition. The development of information technology and the continuous lowering of cost make the management of supply chain possible. lowing the stock. Many of them have already connected with their customers and suppliers by computers. Particular attention should be paid on how to use the modern information technologies while adopting the methods of supply chain management. . elevating the efficiency of transportation. CONCLUSION: With the formation of economic globalization. to adopt advanced technology and optimize the supply chain in order to share the information of all joints on the chain. IT will be an important means to enhance their own competitive and serve their customers better.party logistics popularized. voices and words to conveniently store and get data. At the same time. the competition between enterprises has become increasing fierce even beyond the countries.from between products to between services. Nowadays. modern information technology provides a new way for the development of enterprise management. an era with information explosion. they can timely and accurately transfer pictures. ultimately it¶ll become a significant project considered in the supply chain management research. With supply chain. whether an enterprise can adopt advanced information technology will directly determine its development or survival. Nowadays the market competition has changed from originally between companies to between supply chains. which should be studied further by both managers and professors. retailers and third party service suppliers will build a new value chain. the efficiency and satisfaction of customers have been greatly improved. By multi-media technology. the enterprises are imperative to change the traditional information system. thus shortening the term for ordering in advance. decreasing transferring time. manufacturers and retailers start to utilize third party service to outsource logistics and management business. The combination of information technology and management idea of supply chain improves the competitive edge of enterprises. finally manufacturers. the expense need of customers develop to be diverse and personal.
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