Role of IT in Supply Chain Management

Research TopicRole of IT in Supply Chain Management

Haroon TariqMSIT-13NUST201260780MSEECS60012F

IntroductionSupply chain management is the systematic and the strategic coordination management for supplying goods and products required by the end customer. SCM plays a vital role in organization activities and an essential element to operational efficiency which can be applied to customer satisfaction and companys success. You can say that it is just like the backbone of an organization which manages the critical issues of the business organization such as rapid growth of multinational corporations, global expansion and environmental concerns which indirectly or dramatically affects the corporate strategy. It represents a conscious effort by the supply chain firms to develop and run supply chains in most effective and efficient ways possible.

Prior to 1980s the information flow between functional areas in an organization and between supply chain members was paper based, which was to slow. During that period, information was often overlooked as a critical competitive resource because its value to supply chain members was not clearly understood. With advancement of computer Technology, people had easy access to computers which made information sharing easy and cheaper. Businesses realized the importance of digital information and started to use IT in strategic management. IT infrastructure capabilities provide a competitive positioning of business initiatives like cycle time reduction, implementation, implementing redesigned cross-functional processes. Several well know firms involved in supply chain relationship through information technology. Three factors have strongly impacted this change in the importance of information. Serving the customer in the best, most efficient and effective manner has become critical. Information is a crucial factor in the managers' abilities to reduce inventory and human resource requirement to a competitive level. Information flows plays a crucial role in strategic planning.

MotivationUse of Information Technology in Supply Chain Management has become the essential element in operational efficiency and business success. Many of the global and domestic organizations are using SCM to gain efficiency and to cut their extra storage and labor costs. Use of IT in SCM to get strategic advantage and to get efficiency has become hot topic in todays world. People are searching on different techniques to use IT in SCM in way that would provide them competitive advantage over other firms.I shall study that how different firms are using IT in SCM to gain efficiency and achieve their strategic goals. I will try to identify the flaws and problems in current techniques and try to purpose new methods that will provide more efficient way to achieve strategic goals of a firm and will provide more benefits in better way.

ReferencesRohitaKumar Mishra, Role of Information Technology in Supply Chain Management.