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Impact of IT alignment, a suppliers perspective - Essay Example

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Summary
In this era the evolution of the technology supply chain management has a vital role to play to enhance the process methods of the services. The fallowing article has typically evaluated the various impacts of the IT and eluded the various outcomes of the recent changes crept in the supplier-buyer relationship. …
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Impact of IT alignment, a suppliers perspective
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Impact of IT alignment, a suppliers perspective

Download file to see previous pages... The overhead costs of the implementation of these IT initiatives has raised the investments capitals of these small supplier companies. These suppliers are very small companies in terms of their revenue generated and their areas of operations when compared to their clientele, which are mostly of high revenue generating hubs ,supplier company was unable to tune with. Thus the welfare of these companies has been overlooked, the industry bigwigs has pressurized the suppliers with this act. The benefits of the supplier were in threat as the supplier in this form not been able tune to the clientele requirements. The IT initiatives will create an active flow of the operations involved in between the provision of the services. So, there should be an enhanced correlation between the activities between the supplier and buyer. As, the ideal supply chain management require free flow of the information in both the directions ,it is essential to induce IT enabled service base for effective communication The internal organizational coordination has an important role as it is the prime source to produce the services relevant to the valued clientele but it is complex in nature .



Supply chain management is typically viewed to works between fully vertically running

hierarchy , members operates independently. Therefore coordination between the various

players in the chain is key in its effective management.

The article has stressed the relationships between suppliers and buyers are

the strongest between players who directly pass the baton, but the entire team needs to

make a coordinated effort to provide valuable services. All functions along the chain

share the common objective of supply and are involved in strategic decision-making

activities perceived by the supplier. The Supply Chain becomes responsible for total

inventories, the supply pipe line and also for satisfying customer needs and expectations

while meeting all agreed customer service parameters and company targets. The effective

use of the IT service standards, reduces the operational discrepancies in the supplier's

performance. By effective control of the operational constraints from the fundamentals,

will provide an opportunity to induce the IT enables services more in depth to enhance

service capabilities. The supplier should be encouraged in such a way that his

organisation moulds the requirements of the clientele.


The induction of IT enabled services increases the pace of the transfer of the credentials

relating to product flow from supplier to the buyer with whom the supplier is dealing

with, this aspect will increase the buyer loyalty towards the supplier. Aligning the

Supply Chain with Corporate Strategies will tune your activities with the clientele. The

ability of the supplier to extend effective services depends upon the way he moulds the

fallowing factors by inducing the IT services in his firm: forecasting the demand and get

ready to future course of action to be implemented, assuring the delivery of order

according to available of the resources to go with the assignment, selecting the active and

shortest channels in order pave a highway to implement the assignment, concentrating on

controlling of the costs incurring on the production and opting for effective distribution

pattern to increase the reach to the buyer. Production span ...Download file to see next pagesRead More
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