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Influence Internet and Digital Technologies on Supply Chain - Essay Example

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The IT introduction increases organisation’s ability to understand it consumer behaviour, its store, the market that has an effect on the organisation performance. The paper will address the influence created by internet and other digital technology on supply chain management…
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Influence Internet and Digital Technologies on Supply Chain
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Influence Internet and Digital Technologies on Supply Chain

Download file to see previous pages... From the report it is clear that organisations demonstrate concern on the agility of supply chain, reduction of product time cycle, efficiency, and product delivery. The essence of the above contention is to achieve high performance through introduction of effective and efficient services. The move from the traditional system to the electronic system was because of the influence created by the electronic system to the organisation performance.According to the paper findings the understanding of internet or information technology with respect to SCM would refer to a system where the organisation has no boundaries of sharing its information. Supply chain management is a process where an organisation coordinates, plans, and controls materials (goods) from supply to consumer. The chain consists of geographical facilities of distribution and links created through the transport system that connect the chain to the facilities. The chain would begin from the manufacturing organisation and would end with the consumer. The length of the chain determines the efficiency of the organisation. Supplier to buyer relationship shows some degree of interdependence. Factors, which influence the interdependence, are bargaining power and supply power among others. The development of organisation’s strategy largely depends on its supply power. The effectiveness of the chain would depend on the trust demonstrated by the concerned parties. Analysts contends that application of electronic system in product marketing i.e. IT reduces costs associated with coordination because it drastically cut cost of communication and the assets which offer create chain relationship (Salo and Karjaluoto, 2006:56). The competitiveness of a product in the market depends on the consumer information about the product. The essence of digital technology is to influence the traditional supply chain by creating effective operations. Study on traditional chain show that information availability is limited thus leading to in adequate performance (Simchi-Levi, et.al. 2004:132). Communication is a vital element in the supply chain because it dictates terms of service between the suppliers and the buyers. The effectiveness of the system leads to strategic approaches, which influence the performance of the organisation. Researchers have observed that many organisations have embraced internet and other digital systems in their supply chain process. The shortcoming of the traditional chain includes limited functionality of the enterprise, inflexibility to adapt to environmental changes, limited support functionality in decision-making and limited modularity (Gordon, et.al. 2008:58). Supply Chain in the Book Industry Research on internet influence on SCM in book industry indicates that the application has an influence in the following areas procurement, supply relationship management, customer relationship management, and logistics (Wang, et.al.2011:13). The processes involved in supply chain of books include publishing, creation, consumption and distribution. The trend is similar to other trends employed by other organisations. A bid to understand the impact of internet application to SCM leads to the following approach of explanations. Internet and other digital technologies on purchasing Availability of information through internet has influenced processes involve ...Download file to see next pagesRead More
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