Supply Chain Management

Information flow is an important flow in the supply chain. Without the seamless flow of information, the supply chain cannot operate effectively. Information flow enables coordination between the members of the supply chain. Through the use of information systems, trading partners get access to and exchange information.

IT systems also support the decision making processes of a firm. In this chapter we discussed the importance and use of information in the supply chain and also how information technology makes the supply chain more efficient and responsive. IT systems have evolved from mere transaction processing systems to the decision support systems, which exist at present.

We discussed the IT options available for supply chain operations. These are EDI, Internet technologies, ERP applications and supply chain management software. EDI enables the electronic exchange of key business documents between trading partners. Internet technologies include intranet, extranet, and e-business applications. Intranet is any private network set up within an organization.