Supply Chain and Information System Essay

2443 Words Sep 17th, 2010 10 Pages
Information Systems in Supply Chain Management

Chao Hsuan, Liu (41845491)

Information systems (IS) for the supply chain management have become critical tools for synchronizing information among the customers and suppliers of a supply chain (McLaren et al., 2004). Moreover, the supply chain concept has become a concern because of global competition and increasing customer demand. Thus, the information must be available in real time across the supply chain and this cannot be achieved without an integrated information system for supply chain management. More importantly, information technologies enable firms to become more
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It was also found that the use of the Internet in SCM is rapidly increasing (Lancioni, Smith, & Oliva, 2000). They claimed that Internet will continue to provide logistics managers with important information and enable them to improve the profitability of the supply chain.
However, sharing of information can obviously be a major issue because the companies in a supply chain may not be prepared to share their production data, lead times, especially when those companies are independent of each other (Terzi & Cavalieri, 2004). In fact, the lack of trust between business partners is one of the main obstacles to collaboration in the supply chain (Ireland & Bruce, 2000). Therefore, Li and Lin (2006) found that information sharing is impacted positively by top manager’s support, trusting in supply chain partners and shared vision between supply chain partners, and negatively by supplier uncertainty. Their study indicates that partner relationship plays an important role in implementing SCM practice and improving SCM performance. It is a must that an effective inter-organizational relationship needs to have a high level of information sharing. Moreover, it would be worthwhile for organizations that are contemplating sharing information to spend time and effort to build good relationships with their supply chain partners. In

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