Information Technology in Supply Chain Management

Supply chain management (SCM) is concerned with the flow of products and information between supply chain members' organizations.Recent development in technologies enables the organization to avail information easily in their premises.These technologies are helpful to coordinates the activities to manage the supply chain.The cost of information is decreased due to the increasing rate of technologies.In the integrated supply chain model (Fig. 1) bi-directional arrow reflect the accommodation of reverse materials and information feedback flows.Manager needs to understand that information technology is more than just computers.Except computer data recognition equipment, communication technologies, factory automation and other hardware and services are included.Bi-directional arrow reflects the accommodation of reverse materials and information feedback flows.Managers need to understand that information technology is more than just computers.Except computer, data recognition equipment, communication technologies, factory automation and other hardware and services are included. Integrated supply chain modelA. The importance of information in an integrated supply chain management environment:Prior to 1980s the information flow between functional areas with in an organization and between supply chain members organizations were paper based.The paper based transaction and communication is slow.During this period, information was often over looked as a critical competitive resource because its value to supply chain members was not clearly understood.IT infrastructure capabilities provides a competitive positioning of business initiatives like cycle time reduction, implementation, implementing redesigned crossfunctional processes.