Advantages Of Information Technology In Supply Chain

This report explain us what is supply chain management, what is information technology and how it can be used to in supply chain and what are the major information technology tools which can be used in supply chain. In today’s competitive world firms are much more focusing on information technology to achieve competitive advantages either by implementing Information technology in supply chain, warehouse management, distribution centers and so on. According to Harland (1996) “Supply Chain Management is the management of network of interconnected business involved in the ultimate provision of product or services packages required by end customers”. According to Keith Oliver (1982) Supply chain should address its distribution network configuration

Second Customization can be done as per the requirement of the firm. Third Long term advantage - The initial cost of investment is high, but in the long run it will benefit firm. Lastly, Accessibility - The information technology in supply chain can be accessible by the employee from anywhere they want. But there are certain disadvantages associated, which are as follows, firstly Maintenance cost – information technology in supply chain requires huge maintenance cost, which should be borne by firm. Secondly, Training of Employees - After Implementing information technology in supply chain, there is requirement of training which should be provided by Vinsun in order to become familiar with it. Lastly, Internet cost - Internet cost is involved, when the information technology is there in supply chain. There are certain company such as General motors, Dell, Future Stores and Tompkins, which makes extensively use of supply chain in order to have Competitive advantages over other competitors. There are some key factors which the firm should focus on which are as follows Collaborate do not compete, Remember the goal, Recognize the complex manage the simple, Treat the issue not the symptom, Focus on cost drivers and focus on business impact. After implementing Information technology in supply chain the firm has experienced following changes increased in the profit, decrease in the cost of production, wining of the customers, brand image and competitive edge over other competitors. The existing information technology tools and their application in supply chain management. EDI (Electronic data Interchange) it is defined as exchange of structured data from computer to