Use of Information Technology in Supply Chain Management

In the current business scenario, widespread application of information technology is prominent within the supply chain operations because its use is absolutely essential for the effective management and control of current supply functions. The use of IT for SCM purposes is very effective for transaction processing, supply chain planning, and collaboration, and for the tracking of orders and delivery coordination. Further, it has been observed that the drivers between these uses of IT in SCM differ and enable the organization to grow effectively without limitations. Information technology has enhanced the management of SCM and has considerably improved inventory control in supply chain efficiency.

Information technology has been very effective for the running and maintenance of smooth operations because it removes constraints from the operational processes which are necessary for important management decisions. The coherent application of Information technology solutions boosts efficiency and in the process saves valuable time and money. Despite there being mountains of information about every aspect of the business, managers do not have the time for giving their attention to controllable or uncontrollable factors. When products are sent to wholesalers and further to retailers and then to consumers, the company starts receiving feedbacks and the cycle begins all over again from the beginning. This flow of information makes business procedures and process quite complicated because the involvement of a lot of people is essential to complete the entire process.

The use of Radio-Frequency Identification in warehouses and stores makes it easy for organizations like Wal-mart to effectively communicate with clients for obtaining information which makes for quicker and better operational efficiency. The information obtained and supplied via RFID enables companies to plan their internal processes in a more effective manner.

For effective business outcomes, more and more organizations are adopting RFID technology to improve and expand their businesses. The growth of the business adds more complexities in the operations and therefore the use of RFID technology is imperative in maintaining the best and most advantageous supply chain decisions that will support the growth of the business.

An unscheduled interruption in the supply chain means a lot of empty shelves and unsatisfied customers including massive financial setbacks for the organization which directly affects the market performance and reputation of the organization and also causes massive financial losses Many large companies have effectively incorporated the use of RFID technology with the appropriate bar coding systems for effective management and control of its vast retail network. RFID technology enables the company to successfully utilize its electronic data for simplifying and supporting its varied business interests all over the world.c