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Supply chain strategy
Importance of information systems in business
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Nowadays, rapid growth in the information technology industry affects decision making styles. For today’s managers, it could be beneficial for managers if they are able to take the advantages of the information technology systems. In order to apply information technology systems, often, managers are using computers and software tools to collect and enrich their information and data. There are plenty of computers and software tools to make business runs effectively and efficiently. Moreover, in the business complex environment, building venture scale programming arrangements has never been simple. It requires of seeing big and complex business areas which are ordinarily intensified with all the challenges of dealing with technology advancement …show more content…
Normally, in mega factories or any complex businesses, computers are used to control and ensure the quality of products. For example, Rouse (2010, p.1) provides a definition of supply chain management which “is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer”. It is also often called supply-side activities to boost customer value to enrich a competitive advantage in business. However, this activity requires set of computers with sophisticated processor in order to improve process efficiency. As a result, automobiles and mega factories needs a combination of human workers and computers or robots to make sure every parts in the products are perfectly installed. Before settling on choices on the supply chain strategy for exporting, firms must attempt a careful and full investigation of the attributes and significance of quality control factors (Jraisat & Sawalha, 2013). The illustration of supply chain management is given to realize the fact that managers need computers to guarantee the quality of the products and management control in factory and warehouse. Hence, it is important to realize that computers are play big role in supply chain management and the functions of controlling in the company. In addition, supply chain management would not have been successful if a company does not meet the information system requirements. Therefore, to enhance the supply chain efficiency with a more reasonable arrangement, inventory and production managers need to settle on choices with the frameworks ' reasoning capacity and the consistency (Moon & Dong-Jin,
Supply chain management is connected with the flow of products and information between supply chain members and organizations. New development in technologies enables organization to get correct information easily in their premises. Technologies used are helpful in coordinating the activities which manage the supply chain. By this the cost of information is decreased because now we have increasing rate of technologies. In an integrated supply chain where product or raw material and information flow in a bi-directional we as managers needs to understand that information technology is more than just computers.
Asemi observe that Management Information System (MIS) is one of the information systems that is computer based. Besides, Asemi defines MIS as “an organizational method of providing past, present and project information related to internal operations and external intelligences. It supports the planning, control and operation functions of an organization by furnishing uniform information in the proper time frame to assist the decision makers,” (2011). The aim of MIS is to satisfy the general information need of the entire manager in an organization. Before the advent of computers, the process of decision-making was one that was full of built-in advantages and ad hoc methods. Computers technologies have changed the landscape of the decision-making process completely by making the process less demanding and easy to undertake. The reason for this situation is that information technology has made access to information more automated, efficient, effective, timely, and less ambiguous. Consequently, the ordinary t...
Generally, as figure 1 shown that the Strengths for this supply chain is good for short run production and hard make mistake. It could avoid the lack of materials and make materials mixed together.
[5] “The Smarter Supply Chain of the Future: IBM Global Chief Supply Chain Officer Study.” IBM Institute for Business Value. January 2009. http://www-07.ibm.com/sg/manufacturing/pdf/manufacturing/Auto-industry.pdf
Due to relatively new threats to the industry, increasing numbers of cars and trucks are parked in dealer lots and showrooms, creating an alarming trend of stagnation and profit erosion. Foreign-based automakers, such as Toyota and Honda, have expanded operations onto domestic shores and, in turn, have wrestled market share from American automakers. As a direct result, unit over-capacity has steadily risen, while heightened competition and diverse product lines have led to increasing customer demands. To answer these threats, Ford has made recent attempts to transform its dated vertical integration production model into a maneuverable, efficient supply chain. Emphasizing methods such as Just-In-Time (JIT) inventory, Total Quality Management (TQM), and Synchronous Material Flow (SMF), Ford has derived a multi-tiered system of supply.
It is suggested for any organization to review, reassess any existing supply chain management or any delivery techniques, before developing a new supply chain method so that any exposure to high risk of failure is reduced. Somerset as a company taken advantage of outsourcing and transferred it product manufacturing to China leveraging low cost labor and raw material. The labor cost and other cheap material reduce Somerset overhead cost, but there is always the risk of not delivering product on time due to the foreign country political climate, change in tax and tariff and local
Dell, one of the largest technological corporations in the world, sells personal computers, software, computer peripherals and other digital products among the world. According to the Fortune 500 list, Dell is currently listed as number 51. Dell is well known for its customer-oriented services such as supply chain management and electronic commerce. More specifically, the supply chain management (SCM) used by Dell allows customers to build their own PC online and successfully satisfies each customer’s specification. The selling and buying of products in Dell is conducted over electronic systems, for instance, online transaction process enables consumers attain various services through the Internet. Such considerate services advanced Dell among other computer retailers.
As competition increases within organizations of similar markets, seeking ways to improve overall operations of a business is imperative. Businesses strive for development and that can be done by constructing an effective and efficient supply chain and inventory managing system. Supply and inventory management must be regulated by both the suppliers and the leadership teams of an organization, but primarily the organization being that they know exactly what products are needed for production. Planning, scheduling, forecasting and knowing an entities consumer demands are some qualities that can pursue a business with managing these operations. Organizations must assure its operations are sufficient to the point
This report has clearly in detail described the meaning, benefits as well as the need and challenges of the RFID in the supply chain system. While RFID comes with a larger magnitude of benefits than the bar code, it’s an expensive medium and comes at a price that may be prohibitive to many businesses. On the one hand, RFID is advantageous in different areas of the supply chain and does not require line-of-sight scanning; it helps in labor reduction, enhances visibility of products and processes , and helps in inventory management. On the other hand, RFID is an expensive solution, lacking benchmarks or standards, suffers from some adverse deployment issues, and suffers from major privacy concerns. However with the ultimate aim to see the establishment of item-level tracking which should act to revolutionize SCM practices, RFID is here to stay.
Lean manufacturing and just-in-time processing are great business strategies that can severely stress a supply chain. The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market. The supply chain is one of many pieces critical to maximizing value to the end customer and requires close management to minimize external impacts. If a company is relying on another company to supply the raw materials needed for their production line, then impacts to this other company could impact their supply chain. Careful risk management is needed to optimize performance. As a company expands into global markets and global suppliers, this risk and management challenge is multiplied. The global nature of the company could impact important activities such as transportation, funds transfers, suppliers, distributors, accounting and information sharing. Disruption to the supply chain can significantly reduce revenue, cut market share, inflate costs and threaten production. A major disruption would have obvious impacts to profit, but could have additional intangible impacts to the credibility of the company if products are not delivered on time.
The Internet has played a major role in transforming industry value systems through globalisation and supply chain integration. Factories all over the world each produce a key component necessary for the production of a particular good/item and thanks to the internet it is now easier than ever to manage these supply chains and get the product from production to shelf as quickly and as cheaply as possible.
A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system [1]. The basic objective of supply chain is to “optimize performance of the chain to add as much value as possible for the least cost possible.
The business environment is increasingly becoming competitive and challenging. In the recent past, manufacturers have found themselves facing the threat of dwindling profit margins due to unfortunate global events such as the 2007 global financial crisis and the on going Europe economic crisis. The need to improve operation efficiency so as to ensure current and future investment yield the highest rate of return has therefore become extremely important. Manufacturers are now actively engaged in, managing their costs, Research and Development, adopting best procurement strategies, among other Actions. While such actions might eventually lead to positive results, additional business value can be achieved through proper management of the supply chain (Waymer, Ivanaj & Mussa 2009; Krivda 2004).
A supply chain may be characterized as a coordinated procedure wherein various different business elements (i.e., suppliers, makers, wholesalers, and retailers) cooperate with an end goal to: (1) gain raw materials, (2) change over these raw materials into indicated complete items, and (3) convey these last items to retailers. This chain is generally portrayed by a forward stream of materials and a retrogressive stream of data. For a considerable length of time, scientists and professionals have basically researched the different procedures of the supply chain separately. As of late, in any case, there has been expanding consideration put on the execution, configuration, and examination of the supply chain in general. From a reasonable outlook,
My interest in Information Systems Management was drawn when I was working on my final year project at Maharashtra Institute of Technology under the able guidance of the head of the Computer Engineering department. Professor R. K. Bedi’s support provided a much needed boost to my confidence in my programming skills. This new found confidence, in conjunction with the organization management skills I had acquired through active participation in extracurricular activities like “Tesla”, in inter college programming fest, made me realize I wanted to pursue a program that had comprised a blend of both the computer science and management disciplines.