Study on Role of Information Systems in Supply Chain Management
The Institute for Supply Chain Management has defined supply management as “the identification, acquisition, access, positioning and management of resources an organization needs or potentially needs in the attainment of its strategic objectives.” The ess
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Study on Role of Information Systems in Supply Chain Management Hemin Da
Abstract The Institute for Supply Chain Management has defined supply management as ‘‘the identification, acquisition, access, positioning and management of resources an organization needs or potentially needs in the attainment of its strategic objectives.’’ The essence is a shift of focus away from business units such as warehouses or factories to a more holistic view of a supply chain. For a given company, this might include parts suppliers, manufacturers, transport, logistics and retailers. The purpose of this essay is to explore and evaluate the various approaches that can be taken to facilitate the management of supply chains. Keywords Supply chain
Management Information IT SCM
17.1 Introduction 17.1.1 Terminological Background The Institute for Supply Chain Management has defined supply management as ‘‘the identification, acquisition, access, positioning and management of resources an organization needs or potentially needs in the attainment of its strategic objectives’’ [1–3]. The essence is a shift of focus away from business units such as warehouses or factories to a more holistic view of a supply chain. For a given company, this might include parts suppliers, manufacturers, transport, logistics and retailers. H. Da (&) Shanghai University, School of Management, Shanghai 200444, China e-mail: [email protected]
Y. Yang and M. Ma (eds.), Proceedings of the 2nd International Conference on Green Communications and Networks 2012 (GCN 2012): Volume 4, Lecture Notes in Electrical Engineering 226, DOI: 10.1007/978-3-642-35440-3_17, Ó Springer-Verlag Berlin Heidelberg 2013
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17.1.2 Origins of SCM SCM has its origins in organizational extension theory first proposed by Mallen in 1963 [4]. Mallen’s theory was developed within the context of marketing and advocated the extension of an organization to include all members of the distribution channel.
17.2 Body: Why Use SCM Supply chain management as a concept has been evolved to address a number of issues that affect modern companies as follows [5, 6]. The number of suppliers that companies use has tended to increase greatly, for example, Sun Microsystems has three factories of its own but uses its supply base to increase its productivity by a factor of a hundred. Sourcing from such a large supplier base allows a company to choose the best value components available from the world market giving added value to the customer; the downside is the obvious extra management burden that comes as a result. Economic factors such as global recessions and increased global competition have forced companies to focus not just on their product but also on streamlining every process across the value chain from the component suppliers to the end vendor [7]. As supply chains grow in size and complexity, it can become apparent that there are dependencies between companies in the supply chain. For instance, a smaller size supplier may maintain a line purely to service a larger company. When
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