Strategic Supply Chain And Logistic Management

2779 words - 12 pages

Introduction

An successful integrated supply chain management depends heavily upon areas of operation management, logistics, procurement, and information technology (IT), together they strives for better results . Therefore, transparency with one another with the help of computer systems and programs that can be access or tailor to individual needs is essential. Depending on the operating purpose, it is important that all machines in the company use the same software. This can be important to control the company’s own processes optimally and may even provide a platform for collaboration with suppliers and manufacturing partners. With modern technology of today, there should be minimum obstacle forbidding us from using the same software. Development in new and faster software with improvements and features are available on the market daily. It is thus important to ensure that all parties who are preparing to make it big can have an equal share in this distribution of knowledge, using it to avoid the so-called bull whip effect.(Bartsch, 2013)

Some companies like General Motors uses information in the hope to achieve
• Increased customer satisfaction through the whole supply chain.
• Flexibility
• Reduce inventory holding cost
• Reducing the number of expediting activities, frequencies
• Reduce production interruptions, changes
• Increase opportunities on collaboration proactively.

The challenges of doing so are considerable huge, but so are the benefits too, which are the main explorations this paper intends to do (Handfield, 2005).

Customer satisfaction through information technology

There was much talk of using information technology to attain competitive advantage.
But mostly these promised benefits did not materialize and it is not surprising as most computers software is used for purely operational purposes. However, no real money is to be made in the operational aspects of businesses, so something strategic has to resolve this issue. There are signs of organizations who are starting (just starting) to look again at the truly important aspects of their business with the people who uses and understand IT to help their organization achieve outrageous levels of customer satisfaction.

This presents a whole new challenge for organizations and their use of IT, as many investments have been about reducing or removing people from the delivery chain. In this current customer- and people-centered world, instead of removing people, IT should be put to use in a way that enable people to spend enough time with customers, understand them better and deliver what they need quickly and effectively, it does not mean organizations need to absorb more cost or focus only on activities that customer value. If that is to be, it will see as a distant, remote entity within a business which does not justify the investment. Information technology can make enormous contributions; have its own merits, a means to sell what the buyer need and what a...

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