Investigation On The Improvement Of Global Supply Chains By Using Information Systems

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Investigation on the improvement of Global Supply Chains by using Information Systems.


The process of globalisation continues to increase the competitive pressures on all firms. Those who wish to lead the market have to continue to raise the bar in terms of operating in the most efficient possible manner. One key area for companies today is how they manage particular or own SC activities via the increasing utilisation of Information Systems (IS).

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The scope of think over on to research a role of Information System within global supply chain management (SCM) and understand advantages and profits it fetches. Results showed that in order make SCM to be effective, suppliers and customers must work in close collaboration together to truly integrate their business processes. From the results of the analysis undertaken, it has been concluded that using IS throughout the Supply Chain increases efficiency by reducing inventories, which in turn reduces costs to the entire Supply Chain, but also adds significant value from the end customer’s perspective. Furthermore, the use of IS throughout a Supply Chain enables better speed of response to unpredictable demand


List of Abbreviations SC = Supply Chain S-A = Sigma-Aldrich SCM = Supply Chain Management MNC = Multinational Company SME = Small to Medium Enterprise IS = Information System E-commerce = Electronic Commerce B2B = Business to Business B2C = Business to Customer EDI = Electronic Data Interchange ERP = Enterprise Resource Planning MRP = Material Requirement Planning MRPII = Manufacturing Resource Planning POS = Point of Sale MPS = Master Production Schedule CRP = Capacity Requirement Planning RFID = Radio Frequency Identification APS = Advanced Planning & Scheduling APO = Advanced Planner and Optimiser SCC = Supply Chain Cockpit ATP = Available-to-promise CPFR = Collaborative planning, forecasting & Replenishment

Chapter 1: Introduction

Over the past ten years, retailers and suppliers invested huge capital in reducing the occurrences, where customers cannot find right products in stores. This has created a serious problem in retail and other industries (Collins, 005). Gerry Jastremski (Gillette & Co) reported that this serious problem is causing a $69 billion loss for top retail companies. Recent studies revealed more than 70 percent companies face the same problem that their customers cannot find the products they want to buy in stores due to out of-stock mostly because of inappropriate supply and forecasting of products (Gruen, Corsten et al 2002). When more focused on markets during special offers and sales campaigns, the probability of finding desired product is always one in five times ratio when customers visit the store. As a result, customers change their mind and delay their purchase or look for alternative brand’s products.

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