How Does Information System Effect Supply Chains

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02 Nov 2017

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Supply chain is an organization where suppliers, customers, and many different businesses deal with each other. In each organization of these organizations, all customers’ wants must be done just to fulfill the customer’s wants and make him satisfied. This organization does not have a certain function to do these are lots of different functions like: serving, financing, producing new product and marketing.

Supply chain management is divided into three different main parts or flow. The firs one is the product flow, which is a process of moving products or goods from one person to another, from a distributer to the customers; where to fulfill all customers’ needs and wants. The second type is the information flow, for example finding information you need online through the net, and getting all you wants delivery, anytime and anywhere. The last third type is the financial flow. It includes all kinds of the moving process of money, either you pay or credit, cash or online through the internet.

For example a customer walking into certain store, searching for a certain product. The supply chain is the store itself that the customer visits. This store may have supplier to get these product; so supply chain is just a flow of product between different people with different stages.

Another example for supply chain, when a customer goes online searching for an apple computer apple’s web site has an option of taking its customer’s order through the internet.it provides him all information he wants; which products are available now, what are the verities , and each product with its price, the last stage is to full all the information needed for the computer to finish the order requirement’s, so this process includes a flow of different products with different information , and flow of money between different stages in the supply chain.

What is the importance of supply chain management?

In the past in Greek, they have something like statement said that there was a race between a rabbit and a turtle. The rabbit is known by its speed and full of confinement, where the turtle is known by its slowness. The surprise that the rabbit fell asleep in the middle of the race, so from the other hand for supply chain the turtle won the race; the unexpected event. This could be true but not in today’s business environment, you have to be fast in your work not as slow as the turtle and depend on luck. Managers or business man think that getting the customers products wants faster will raise the position of the company. Companies must seek and have for new solution manageress issues also any company must face different kinds of challenges which impact with the supply chain. The company’s sales increase when its products are always available the extra time you have than your competitors do, the more profit you will have. Just any company must try to be the first to get orders to be likely the first in the market share and market growth. It’s clear now that the supply chain of management has a very important part in the process of moving products and goods faster than in the normal way.

Role of information system in supply chain management

Supply chain of management is now very important in the services field. Customer’s satisfaction is the most things that have to be done in any kind of business. And also customers satisfaction depend on how those activates are done either effective or not to the customers and the company itself

For example hotels: one of the greeted businesses that mostly based on fulfilling their customers’ needs and want large supply factor are gathered and collected through the guests requirements and want some data were collected from different hotels in Istanbul .they asked them lot of different question to figure out what are the requirements that are needed lots of different question to figure out what are the requirements that are needed the mostly and if there other requirements not asked for in all hotels .After findings all the answers of what they wanted. They started evacuating what they had with the information system in supply chain management and its different condition.

These results they got were evaluated in many groups first one was purchasing , second one was management .third one was customer relationship , the function was warehousing ,and the last one was services .second in the supply chain of course yes they found that internet . Does the internet have a part more than fax? In this case information system is used the speed, no high costs, and saving much time.

In this example, the supply chain was examined by members interaction so there must be a relationship between supply chain and information systems to achieve any good you want.

Benefits of information system on supply chain performance:

Now days’ supply chain of management doesn’t depend only on the kind of customers deal with each other, the faculties suppliers distribute ,or even the production the produce but also it depends on the supplies timing. The time that supplies use to start producing and distributing to other supplies and dealers in one of the most important part in the supply chain of management, another thing, is putting priorities in your business, what products to produce, when, how, and for whom. Information systems may be helpful with an important way of earning in the supply chain ,by deleting information that are postponed and increasing and new information of an distribution happened. At the begins information systems was developed just to manage information’s and products that out and come in and still now it limits but not like before ,its more advanced

Building a better supply chain:

In the past few years it was obvious that there was an increasing in the economic field .Customers demands weren’t stable ,also the movement of products through supplies the suppliers, who work in the supply chain were under huge pressure to event new , developed ,and more efficient products to satisfy their customers need and wants and from the other hand they put affordable costs for these products .no all what suppliers think of is putting products that they are sure about selling it and not bring from it having more revenue than expenses what most supplies do is putting short run plans not long runs one, because this way help them in having less risk .there are different strategies for building a better supply chain. First one is concentrating on timing when to reduce products to the buyer’s .put sales or production which will make the product the buyer’s .put sales or promotions which will make the products more attractive, may also reduce mot than one product to increase my market share and from the other hand the supplier will gain more money.

The main from the first strategy is try to be challengeable company not only in services but in everything else until you succeed .The second strategy is once you have new product yow want to start selling it in the market ,doesn’t mean you forgot about the old product . Have as many writes as you can which will make a very strong competitor to any other supplier ,you will gain more money and your market growth and share will be high .The third strategy : to be a successful supplier you have to organize your product costs ,put the right costs for the right products .as well as for the product design if the supplier or the company itself managed these stuff ,it will be very strong company in the market filed .What all leaders and suppliers need is to focus on achieving quick goals in certain time .

How to be in better stage in any organization?

In these days if you kept doing the same thing over again you won't do anything good and won't be acceptable anymore ,in order to get and have good result in your business you and also other suppliers in the supply chain have to upgrade your process ,y having new ways and methods . There are many and different practices that companies should do in order to be in a much better plan than before .some of the practices may be normal, easy, simple, common and others may be unfamiliar, difficult. But achieving at least most of them could make and build every strong company .The first thing you have to do is putting a leader under you (as a manger), to help you in organizing your business. Try always to make your company visible as possible as you can which will help you in increasing your market growth ,The more the you worked hard the more you will be willing to make other companies work with you and difficult for some companies to organize their supply chain in a way that could bring benefit to the company .some companies see that putting their business in different places will affect punitively on their companies ,and the same things with companies who see that minimizing there business will be more effective so it depends on the company and its leaders plans.

Staffing your organization correctly what will always make you succeed your priory in evaluating you staff knowledge and skills :especially management skills of course any leader should have more abilities and their employees and stuff with how or her internal or external environment and of course very strong and high management skills .some companies for example choose certain software that they which they may change and improve it .Which will make them more efficient The problem here is choosing without reviewing first .you have to see if this chosen technology need to be more advanced or not. Many companies choose first and later on start figuring out. another thing that may benefit any company is focusing or looking not only at the prices but also the total cool of you ownership .you look at what process whether consuming services of products .The total cost of owner ship is a goal that the supply chain of management need There must be policies for the supply chain management to be followed .they must be kept and reviewed a lot .These policies should be easy to understood

Best company in the supply chain:

Apple has the best supply chain in the world, and many professions believe in that. Apple has the highest market growth and market share in the whole supply chain. It is also known for its advanced proudest : develops all king in is hairweave , soft waves and other different services .Apple supply chain is not like any other traditional supply chain . it is fascinating one where comes before building the company's advantages and disadvantages .Apple always invent new products which attract their customers more and increase their loyalty: the more Samsung loses .Apple now has a huge part in the market . Apply take care for every single thing before selling it products .it may take weeks or even months only margin or making the products design

Disadvantages of management information system: it caused many people to be unemployed. Because information technology have simple in the business operation , so it made many same jobs there wasn't varieties of job activities to choose from and the person don't like working at that field didn't easily find another satisfied job, it also made people life so private, not like before. Know everyone is communicating with others through the cell phones, internet, and other advanced technologies.

What about the disadvantages of the whole supply chain of management, the supply chain of management is a very familiar and efficient device for the business operation and to make it better and progressed. Although there are lots of advantages could be made by the supply chain of management but also it has lots of disadvantages, if it wasn't managed properly from the beginning. The large development and investment needed resources, money and time, may be 3 of the biggest

Disadvantages is the whole supply chain if there is no enough money for investment, this will cause a huge drop in the supply chain , and the same with time and needed resources. If you couldn't manage your time correctly it will easily affect you company's supply chain.

Any success of any organization either a private one or a public one, depends on the way you manage the circular flow of money, goods, and information. Any kind of chain even the supply chain could be long and includes different kind of dealers. Many problems could happen in any kind of organization that could effect on customers’ satisfaction. A problem happened once in the Dell computers; there were many delays and lost some sales. Dell has its own website to view all its products through it; so Dell would have better relationship with their customers, if anyone can’t reach Dell itself, he or she can buy anything through the internet. Dell kept growing and has a great value in the market, and at the same time it had lots of competitors, and many suppliers and distributers to deal with; it was very complicated supply chain. Their way of managing their supply chain was wrong, they lost lots of money; over sixty million dollar, and Compaq; the dealer in the market wanted to take off, and remove Dell from the market at that time. So the solutions was Dell decided to change its supply chain; from the dealers and suppliers till the customers. First thing Dell did was viewing all its products online; so it would be easier to contact with customers and have much better relationship with them, and also made a very satisfying way in delivering their products to their customers, anywhere and anytime. Second thing they did was managing their time either in producing new products or in delivering. In both ways they were successful in their work activities. Dell supplies’ location were so close to their factories, so it was so easy for them to reach their factories if anything wring happened; they handle it easily and quickly. They invented new electronic machines to arrange some of their products; so they may save lots of money and lots of time as well. Dell knew the way their customers think; what products they want to be newly invented, and they know how to do it. At certain time Dell was gaining more than three million dollars each day for its selling computers through the internet. Since Dell had changed its supply chain and everything have changed; it starts gaining money instead of losing and having also a great value in the market. In 2001 Dell was the first in selling computers in the whole world.

How does information system effect on the supply chain strategies and performance?

In order to make a good performance; and even a better one of your organization or firm, the supply chain of management should be the supportive part that makes you move forward in the business. So to achieve your accomplishments you planned for in your supply chain, you should have use an appropriate, proper, and suitable information system. There are different kinds of information system; each kind is used for its own purpose, in its own time. According to the manager’s requirements, he or she choose which kind to use. Information system helps companies to perform well, do plans and get some advantages from their competitive. The classic field of information system is adjusting the organization performance. It also helps in dominating your deal and product prices. Information system concentrates on the market’s stability and the way of taking decisions. This flexibility helps in some changes in time, paying money, making effort, having better performance, and also from the other hand maximizing customer’s value at low pricing. So information system has two positive influences on supply chain of management. When it is for efficiency if affect positively on the slope of the supply chain of management and its performance, and when it is used for flexibility market it affect positively on the supply chain agility and its performance. In either to ways, information system can affect and change a whole cycle of a supply chain of management.



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