Benefits of Information Technology Implementations for Supply Chain Management

The usage of Information Technology (IT) in organizations across the supply chain has become a determinant of competitive advantage for many corporations. This chapter focuses on the usage of IT tools for Supply Chain Management (SCM). It also highlights the contribution of IT in helping restructure the entire distribution set-up to achieve higher service levels, lower inventory, and lower supply chain costs. An overview and tangible benefits of the existing IT tools, which are widely deployed, is provided with focus on existing configuration considerations, available applications, and deployments in India. The role of existing communication technologies in making IT an enabler of SCM, is highlighted by addressing a range of different point and enterprise solutions in a variety of supply chain settings. Critical IT demonstrations and implementations in SCM are discussed. Fundamental changes have occurred in today’s global economy. These changes alter the relationship that we have with our customers, our suppliers, our business partners, and our colleagues. Reflection on the evolving and emerging IT trends like software agents, RFID, web services, virtual supply chains, electronic commerce, and decision support systems, further highlights the importance of IT in the context of increasingly global competition. The rapid adoption of the Internet for communication with all stakeholders, seems to reflect the potential of the new-age communication media. It has also been observed that several progressive Indian companies are extensively using emerging tools like virtual supply chains, web services, RFID, and electronic commerce to shore up their supply chain operations. However, adoption of tools like software agents and decision support systems for supply chain integration by Indian companies, is limited.