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COMPUSOFT, An international journal of advanced computer technology, 3 (12), December-2014 (Volume-III, Issue-XII)


Role of Information Technology in Supply Chain

Lovedeep Singh Sidhu, Jyoti Sharma, Hina Sharma, Navdeep Kaur
Assistant Professor, Shaheed Bhagat Singh State Technical Campus, Feorzepur (Punjab) India
Abstract: This revision specify that the set exercise of IT has industrialsed in the previous five years. In exacting
Internet knowledge as well as third gathering deal mixing services have provided companies with increased
possibilities to network with supply chain partners. In order to survive and beat the competition in todays spirited
world, one has to direct the potential. Organization the future means managing information. In order to convey
superiority information to the decision-maker at the right time and in arrange to automate the process of data
collection, collation and alteration, organizations have to build Information Technology an ally, strap up its full
latent and use it in the best latent way. IT is precious for collaboration and integration within the stakeholders of the
supply chain. SCM consultant interviews gave understanding of the current state of practice. It will help in
identifying the mechanisms for achieving benefits of IT in SCM.
Keywords: Coordination, Cooperation, Integration, Information Technology, SCM, Benefits of IT.

availability of far above the ground superiority

information for enhanced decision-making and earlier
reply times.

Information technology is revolutionizing the
method, in which we exist and job. It is changing all
aspects of our life technique. The digital revolt has
agreed mankind the skill to delight information with
mathematical accuracy, to convey it with high
accurateness and to control it. These capabilities are
bringing into organism, a total world within and
about the physical globe. The quantity of
computation power that is accessible to mankind is
increasing at an excellent rate and Computers and
communiqu is becoming essential parts. At the
managerial stage, IT should help in specifying the
objectives and strategies of the association. IT should
also aid in rising and supporting, and events to attain
them. At the departmental stage, IT must make sure a
soft course of information crossways departments,
and ought to direct organization to take on the most
practical trade practices. At this stage, IT ensures
flawless course of information crosswise the diverse
sections and expands and maintains an project wide
database. This database will remove the requirement
of the inaccessible data islands that existed and in
every division and make the organizations
information available transversely the departmental
boundaries. This projectthick distribution has lots of
benefits likes mechanization of procedures,


The supply chain management (SCM) is anxious with
the current of goods and information connecting the
supply chain members that includes all of individual
associations such as dealers, manufacturers, repair
sourcers as well as purchasers. These associations
linked jointly to obtain, pay for, change or produce,
collect, and deal out high-quality and examines, as of
dealers to the eventual and consumers.
Nowadays, information and knowledge must be
conceived of generally to include the information so
that industries make and employ as well as a broad
variety of increasingly convergent and associated
technologies that proceed the information with the
appearance of the individual computer, visual thread
networks, the outburst of the Internet and the World
Wide Web. The price and ease of use of information
reserves allocate simple linkages and remove
information-related time delays in any supply chain
network. This way that organizations are moving in
the direction of a impression known as Electronic


COMPUSOFT, An international journal of advanced computer technology, 3 (12), December-2014 (Volume-III, Issue-XII)

Commerce, where dealings are finished via a variety

of electronic medium, including electronic data
interchange (EDI), electronic funds transfer (EFT),
bar codes, fax, automated voice mail, CD-ROM
catalogs, and a range of others. The old paper type
contracts are becoming gradually more out of date.
Leading-edge associations no longer need paper
procure requisitions; acquire orders, invoices, in
receipt of forms, and physical description payable
matching process. All necessary information is
recorded electronically, and connected deal are
performed with the least measure of human
interference. Fresh
progresses in database
arrangements allowed division numbers to be added,
implied, and stored in databases, and electronically
ordered. With the request of the suitable information
systems, the requirement to constantly observe
inventory levels, position orders, and speed up orders
will quickly turn into a fixation of the history. In
additional current prose, for example Simchi-Levi et
al., (2003), Dawson (2002), Chopra & Meindl
(2001), and Levary (2000) comprehensive discussion
is given on the role of new information technology
for SCM.
According to Simchi-Levi et al., (2003, p. 267)
objectives of IT in SCM are:
Providing information availability and visibility
Enabling single point of contact of data
Allowing decisions based on total supply chain
Enabling single point of contact of data
Elaborating on the normally viewed sensible roles of
IT in SCM, the following organization can be

IT changes industry structures and rules of

competition, creates competitive advantage, and
creates new business opportunities. In the
logistics/supply chain context, Bowersox and
Daugherty (1995) outlined that IT is key in
supporting companies producing tactical benefit by
enabling central tactical arrangement with day-to-day
federal operations. A universal vision held is that IT
has a philosophical crash on running supply chains.
Using case studies in six Finnish industrial supply
chains as facts, Kemppainen and Vepslinen (2003)
argue that IT is, alongside specialization and
outsourcing, a key precondition for networking of
organizations. One grouping of scholars dispute that
since of information technologies, supply chains turn
into less incorporated and additional market oriented
combines the structural benefits of SCM with the
competence advantages of an arms span move
toward, enabling, for example, lower cost through
possibilities of selecting from a larger supplier base.
The landmark work of Malone et al., (1987) proposes
that the value offerings through IT are electronic
communication (speed of communication), electronic
brokerage (by IT providing a lean, automated
intermediary for resolving market transactions), and
electronic integration (coupling of processes). IT
seems to be mainly significant in quick clock velocity
industries (Guimaraes et al., 2002) or at what time
suppleness and agility are needed (Sanders &
Premus, 2002; Heinrich & Betts 2003).
Information is the center to the choice making in
trade. A noteworthy part of the information secondhand to current among practical areas within an
association, and connecting supply chain associate
organizations, were paper-based. In numerous case in
point, these paper-based business and communiqus
were sluggish, untrustworthy, and mistake level.
Conducting trade in this behavior was expensive
because it decreased firms efficiency in organism
clever to plan, expand, obtain, produce, and deal out
their products. Throughout this era, information was
frequently unnoticed as a serious spirited reserve
because its cost to supply chain members was not
obviously unspoken. On the other hand, firms that are
embarking ahead supply chain administration
initiatives currently be familiar with the vital
consequence of information and the technologies that
construct this information existing.
Timely and accurate information is more critical now
than at any time. Three factors have strongly
impacted this change in the importance of
1) Information flows play an essential role in
the strategic planning for and deployment of


IT in universal, and IT in SCM, is argued to allow
great chances: ranging from straight set benefits to
the formation of planned advantage. For example
Porter and Millar (1985) argued previously in the
1980s for the strategic possibilities of IT for business.
Porter and Millar (ibid), in particular, advocate that


COMPUSOFT, An international journal of advanced computer technology, 3 (12), December-2014 (Volume-III, Issue-XII)


applications that may be used by many different

types of lower level participants; and finally.

2) Satisfying
something of a corporate obsession. Serving
the customer in the best, most efficient and
effective manner has become critical, and
information about issues such as order
status, product availability, delivery
schedules, and invoices has become a
necessary part of the total customer service

It is incorrigible that the significance of IT and
superiority of information are balancing to every one
additional since physical filtering power vanish.
Although robotic information dispensation prevents
labor-intensive errors, it also makes the course fewer
clear and consequently, incorrect information or
information of short rate may be generated if the
information contribution is previously of terrible
value and not correctly checkered. A difference can
be generated among the level of information and the
wealth of information replace. The division of
information in methodical verbal communication
involves more deed and commitments hold to
improve the quality of any association which is
helpful in the luminosity of supply chain network.

3) Information is a crucial factor in the

managers abilities to reduce inventory and
human resources requirements to a
competitive level..
In supply chain-management, the contractors,
creators, purchasers are the parts and are linked from
side to side the last stage of combination. These
members are incessantly abounding with information
in factual time. The groundwork of the capacity to
contribute to information is the useful use of
Information Technology within the supply chain.
Suitable function of these technologies presents
decision makers with sensible contact to all
mandatory information on or after any spot within the
supply chain.
Recognizing the
consequence of information in an incorporated
supply chain surroundings, a lot of organizations are
implementing a number of form of an interorganizational information system (IOIS).
The development of an IOIS for the supply chain has
three distinct advantages: cost reductions,
productivity improvements, and product/market
strategy. Five basic levels of participation for
individual firms within inter organizational system
1) Multi participant exchange node, in which the
member develops and shares a network inter-linking
itself and any number of lower-level participants with
whom it has an established business relationship
2) Application processing node, in which the member
develops and shares a single application such as an
inventory-query or order-processing systems.
3) Remote I/O node, in which the member
participates from a remote location within the
application system supported by one or more higherlevel participants.
4) Network control node, in which the member
develops and shares a network with diverse


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