Thursday, May 5, 2016

Supply chain information system

An effective way for linking all logistics activities in supply chain together is to implement an integrated supply chain information system.

Supply chain information system can be defined as information systems that automate the flow of information between a firm and its suppliers to optimize the planning, sourcing, manufacturing and delivery of products and services.

The information system becomes the glue of the supply chain. Visibility through operating data coordinates operations, either through automated task or management surveillance.

Information technology can provide managers with overall directions for strategic decisions, to match market requirements with resource allocations to optimize the system. The supply chain management information system and decision-making components are tightly interrelated.

The decision-making components use information from various sources in the supply chain management information system.

Information technology also can automate processes such as documentation and internal operation routines. Orders can be processed and result in complete fulfillment without human intervention.
Supply chain information system

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