Importance Of Information In Supply Chain Management
Supply chain management is the integration and coordination of all supply activities to provide best product or service to the customer, reduce cost and time in the best possible way.
Information plays a vital role in supply chain management. Information sharing has improved the way the companies do their business with their partners. Information increases the visibility of demand and supply. Hence information flow facilitates speedy resolution in reducing purchasing costs, expedited fright and better supplier negotiating capabilities.
Supply chain key elements and the importance of Information:
Demand management: A company focuses on the demands of …show more content…
Enterprise Resource Planning (ERP) Systems: This is the system that provides automation in all the activities and functions of a business. It is a transaction- based information system.
Main role: Basically, they allow for data capture for the whole business into a single computer package which’s give a single source for all the key business information activities, such as customer orders, inventory and financials.
Warehouse Management system: Warehouse management systems are systems that control all the traditional activities of warehouse operations. Areas covered usually include receipt of goods, allocation or recording of storage locations, replenishment of picking locations, production of picking instructions or lists, order picking, order assembly and stock rotation.
Transportation Management Systems: Transportation Management Systems provide more visibility into shipments and orders. Scheduling issues are also addressed on time.
This system resulted in improved cost controls, better labor planning and reduced administrative