Logistics :

• Inventory
• Supply Chain
• Transportation
• Warehousing

Business Value Of Supply Chain Management

      Supply chain used by a company is one among the most valuable assets to its business and to its vendors. However, supply chains’ designs and their management involve a hefty price. SCM’s (Supply chain management) business value can be enhanced only if the company is willing to adjust their conventional routines, way of working, and attitudes according to the requirements of its value chain. In case the company fails to do so, its supply chain may fail miserably causing it to lose a significant part of its fortune in the entire process. More..

Supply chain management (SCM) is primarily related to transfer of goods, information, and products between different members of the supply chain, including the supplier, manufacturers, wholesalers, retailers, and finally the consumers.

IT or Information Technology, on other hand, involves extensive use of computer programs to avail, manipulate and store information. Recent advances in the field of IT has enabled the businesses to effectively co-ordinate and manage their main supply chain activities and cut-down the costs to the lowest possible level. Growing rate of IT has drastically brought down the total cost of availing information. SCM in IT operates on an integrated model featuring bi-directional flows of information and reverse material accommodation. Improvements in SCM and advances in IT can be correlated well with each other with an increase in the number of efficient virtual supply chain models.

SCM in IT, however, does not only relate to the application of computers. It also involves extensive use of communication technology, hardware, factory automation, equipments for data recognition, and other related services to tap the business value of supply chains.

In an IT framework, anyone and everyone involved in the organization’s supply chain can access the required information pertaining to changes, delays, and new products, and remain integrated with each other through intranets or web-based technologies. IT, if used properly, can thus help in enhancing efficiency of SCM and reducing the risks and costs involved in the process.

A large financial impact is created by IT on an organization’s supply chain. Therefore, executives should attempt to leverage technology to develop distribution models that are cost-effective. As an example, shipping costs can be cut-down significantly by implementing a system of receiving payments and orders electronically. Thus, if SCM is successfully woven into IT, all the challenges of sales and distribution can be taken in hand readily, thereby reducing costs and increasing profits for the business.

More Articles :

• Business Value Of Supply Chain Management
• Performance Measurements In The Supply Chain
• Risks In Supply Chain Management
• Supply Chain Management In Information Technology