THE USE OF INFORMATION SYSTEMS

The use of information systems

The use of information systems DELL

Introduction

The term supply chain management (SCM) was initially used in wholesaling and retailing to denote the integration of logistics and physical distribution functions with the goal of reducing delivery lead times. Manufacturers and service providers have used the same term to describe integration and partnership efforts with first- and second- tier suppliers to reduce cost and improve quality and delivery timing. Terms such as integrated purchasing strategy, integrated logistics, supplier integration, value chain management, supply base management, strategic supplier alliances, lean production, Just-In-Time (JIT) logistics, and supply chain synchronization have been used in the literature to address certain elements or stages of this new management philosophy (Gunasekaran M., 2004, 584).

The use of information systems DELL

Conceptually, SCM includes all value-adding activities from the extraction of raw materials through the transformation processes and through delivery to the end user. SCM spans organizational boundaries and treats the organizations within the value chain as a unified virtual business entity (Handfield R., 2005, 18). (Handfield R., 2005) further expanded SCM to include recycling or reuse activities. In general, SCM seeks improved performance through elimination of waste and better use of internal and external supplier capabilities and technologies (Gunasekaran M., 2004, 584).

Use of ERP

ERP is an adaptable and information-rich approach that states have used to both assess and improve the performance of a variety of sectors. States cite the following four key reasons for pursuing ERP: cost-effectiveness, accountability, improved awareness and cooperation within a sector, and flexibility. Most agencies don't have the resources they need to fully monitor and work one-on-one with facilities in a variety of sectors with a large universe of facilities using traditional methods of compliance assurance. Available evidence suggests that ERP can achieve performance at least as good as that of traditional compliance assurance approaches, with potentially fewer resources over time. ERP appears to be more cost-effective when used in these kinds of sectors and/or when it is applied over more than one ERP implementation cycle. Both of those factors help defray the initial implementation costs of ERP, which can be relatively substantial. More broadly, the reliable performance data generated by ERP statistical approaches can lead managers to make more informed and effective policy decisions within and across sectors.

The retailing industry has focused on different aspects of SCM, namely, location, transportation, and logistics issues. Indeed, the origin of supply chain management can be traced back to efforts to better manage the transportation and logistics functions (Huan K., 2004, 23). The wholesaling and retailing industries incorporate a logistics focus within their strategic decisions. In this respect, SCM is synonymous with integrated logistics systems that control the movement of goods from the suppliers to end customers without waste (Huan K., 2004, 23).

Moreover, integrated logistics systems seek to manage inventories through close relationships with suppliers and transportation, distribution, and delivery services. A goal is to replace inventory with frequent communication and sophisticated information systems to provide visibility and ...