3.

Goals of Supply Chain Information Technology

Information Technology has proved it importance role in all fields, of course in
Supply Chain too. As a result, most companies pursue IT in the Supply Chain to
achieve its goals. But, in fact, many companies and industries are currently far from
achieving these goals, while others are well on their way to accomplishing them.
Before knowing how to achieve these goals, we will clarify the goals.
For the purpose of utilizing information, those information need to be collected,
accessed, and analysed. So that, the goals in these areas are:
- Collect information on each product from production to delivery or purchase
point, and provide complete visibility for all parties involved.
- Access any data in the system from a single-point-of-contact.
- Analyze, plan activites and make trade-offs based on information from the entire
supply chain.
- Manage uncertainy by collaborate and combination with supply chain partners.
3.1. Collect Information
The primary goal of IT in the supply chain is to link the point of production with
the point of delivery or purchase in seamlessly. The idea here is to have a flow of
information that follow the physical flow of product. This information' flow need to be
available throughout the physical one for all parties to access and to track. It allows
planning, tracking, and estimating lead times based on real data.
The requirement to access to data that reside in other companies' information
systems as well as across functions and geographic locations inside a company are
necessary, because the retailer needs to know the status of its orders and the suppliers
need to be able to anticipate an incoming order from the manufacturer. Futhermore, the
participants need to see data in their own terms.
The availability of information regarding the status of products and material is
the essential to make a interlligent supply chain decisions.
 Likely to Picture 3.1, information and products flow form the suppliers to the
manufacturer, internally through the manufacturer's distribution system, and then on to
the retailers.

Picture 3.1. Flow of information and goods in the supply chain

Source:
Beside simply track products across the supply chain; alert diverse systems to
the implications of this movement are also really necessary. It helps to notified when
one echelon in chain occur problem, the whole chain can make the proper adjustments.
This goal requires standardization of product identification (e.g., bar coding) across
companies and industries. Example: when the supplier delays in a delivery that will
affect production schedules. In this case, the manufacturer need to be notified timely to
adjustments by either delaying the schedules or seeking alternative sources. And Radio
Frequency Identification (RFID) technology is an attempt to address this issue.
3.2. Access Data
The requirement of this important goal is a single-point-of-contract. This mean
all of the available information can be accessed in one stop and be the same for all
customer or internally department, regardless of the mode of inquiry used (e.g., phone,
fax, Internet, kiosk) or who is making the inquiry. This is a complicated one to achieve
because companies need a synchronizing data across multiple systems and making sure
data is available real-time. Moreover, information may be required that in various
locations within one company and, in some cases, across several companies or other
country.

Picture 10.2. Current information systems

Source:
As Picture 10.2, it illustrates the information system in some real companies that
is separated between different functions department within the company. Customer
service will work with one system, accounting with another, and the manufacturing and
distribution systems are completely separate. It will create a problem that the
information will not be consistent between different parts of the company, especially
when they need to transfer of some crucial information that needs to be accessed across
systems, but if the transfer is not done in real time, then the systems never have exactly
the same data.
 Instead of the information systems tend to be islands like that, companies can
apply the new generation of information systems (Picture 10.3). It will help everyone
who needs to use certain data should have access to the same real-time data through
any interface device, and can update all information timely.

Picture 10.3. New generation of information systems

Source:
3.3. Analysis Based on Supply Chain Data
The third goal is related to analyzing the data to make the best decision, find out
the best way to operate the supply chain, especially in the global supply chain picture.
We can utilize the information system to find out the most efficient ways to produce,
assemble, warehouse, and distribute products.
This entails various levels of analyzing and decision making, includes
operational decisions related to which warehouse to stock with what product, or what
the production plan for the next three months should be, to strategic decisions about
where to locate the warehouse, and what products to develop and produce. Beside that,
it also requires the flexible systems to accommodate and adjustment with changes in
supply chain strategic. That mean, the systems need to be highly configurable, and
develop the new standard.
And beside these three primary goals, collaborate with supply chain partners
also is the important one. The complete information system improves the ability to
collaborate, increases alignment and integration of business processes. For instance, the
supplier relationship management (SRM) systems, Customer relationship management
(CRM).
In conclusion, these goals of supply chain management do not have to be
achieved at the same time and not necesary depend on each other. They can be targeted
in parallel, depend on the industry, company size, internal priorities, and return on
invesment considerations. Companies need to understand many issues in Information
technology development that related to supply chain management and the means to
achieving these goals in Picture 10.4 below.