Strategic Supply Chain and Logistic Management

2743 Words11 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 mate... ... middle of paper ... benefits from it. Obviously, it will not be one-time exercise but a continuous process that should synchronized with the organization’s strategic objectives. Equip with this perspective, managers will be able to take a proactive approach in which they focus on building flexibility and IT capability to improve productivity and profitability. With signs that business and people began to use and understand the importance of IT does help their organization achieve optimal levels of customer satisfaction. In additional to that, building successful relationship with global partners through collaboration by using advance information technology as a platform, optimizing its distribution network to attain sustainable competitive advantages and profitability in all organizations will not be just a dream, it is a reality that is achievable if put to good use collectively.
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