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Supply Chain Integration - Case Study Example

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In this case, information and technology enabled the two partners to share information, trade goods and integrate their processes (Clark, and McKenny, 1995). In doing…
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Supply Chain Integration
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Supply Chain Integration

Download file to see previous pages... The power of IOIS also helped in creating an adversarial relationship between Wal-Mart and P&G. In this case, information technology helped in creating an accurate and timely information flow within the organizations. In simple terms, technology helped in establishing a common language especially during the partnership (Clark, and McKenny, 1995). Through technology, both organizations’ costs were driven down.
Supply chain integration entails the flow of both products and information between organizational supply chain members. Recently, technology use is considered a requirement for any effective control in supply chain integration. In fact, development in technology enables organizational supply chain management to avail information easily. These technologies remain significant especially in coordinating the activities that help manage supply chain. Despite the acknowledged significance of IT use in supply chain integration, most studies assessing technology use in supply chain context remains limited (Coyle, Langley, Gibson, & Novack, 2012). According to the article, technology use especially in supply chain management is divided into at least three aspects. The three aspects include;
Use of inter-organizational systems in supply chain integration remains important especially in information sharing. It also helps in processing across organizational boundaries. In organizations such as Wal-Mart, technology has played various roles in the company’s supply chain integration. Key roles in this case include driving out costs via automation, joint scorecards and measurements, and sharing information to better consumer understanding. It also helps in driving sales (Coyle, Langley, Gibson, & Novack, 2012). On the other hand, technology in supply chain integration helps in emphasizing strong commitment into developing mutually beneficial ...Download file to see next pagesRead More
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