Effectiveness Of Information Technology In Supply Chain Management

1574 Words 7 Pages
Alvin Wilson Professor Amy Berrier Eng101 11th June 2016

Argument Essay on Effectiveness of Information Technology in Supply Chain Management

“Is there a need for Supply Chain Technology to be implemented in all of the Supply Chain process?” In my opinion, it is imperative to utilize cutting edge supply chain technology from the start of the chain to the finish in order to be assured a competitive edge, profit maximization and corporate survival. Some people do not see the need for efficient I.T to be establish along the Supply Chain. They state it is a waste of money and resource to implement effective I.T infrastructure on every level of the chain. Some parties do not even see the need for supply chain technology in general whiles some
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There is however an iota of truth in the fact that it is a huge investment in the first place and also the concern of it being a risky business but these are all short term allegations and it doesn’t justify the reason not to use technology. The risk involved in relying solely on computers and technology is one of a major concern according to Watson. He stated and claim that technology has its limitation and sometimes the cost of rectifying a technological fail outweighs the cost of investing in the technology. According to the article “The role and impact of technology on Supply-Chain management in the food industry” Watson stated that “These technologies are not without their limitations. Technologies may have high capital costs and, depending on the size of the firm, these investments may not be feasible. For example, RFID technology has limits to its performance. According to Welt (2003), lack of hardware interoperability has been a major limiting factor for RFID implementation. Certain products such as liquids can interfere with the transmission of the electromagnetic waves to the terminals and result in a “bad read” of the data”. (Watson, …show more content…
This is because the companies realized that smooth information flow increases the efficiency of entire supply chain, which was absent in 1980 when paper based methods were used. Now the information is extracted, processed and stored in most efficient manner using information technology. Those who have utilized this man-made boon have reaped good gains, like Dell, Walmart, P&G etc. (nmims-optumiz, 2011). I can’t imagine having a paper based inventory system and supply chain processes. In an era where almost everyone is going green and going paperless, technological advancement with the environment in mind has obviously motivated the cause to save the earth by going green. Dean vella, and NMIMS optimiz have indeed justified the importance of supply chain technology in today’s business operations and have demystified the fear and anxiety in the choice to go all the way out to use supply chain technology at every level and point in the supply chain, from customer placing demand to customer receiving the product or

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