Role_of_It_in_Scm

Use of IT in supply chain management- Challenges. Here are some of the challenges with respect to use of IT in SCM. Compatible concepts and coherent goals: The key concept of supply chain management is to combine all parts of the supply chain (both internal and external) of an enterprise organically. Today a product’s way to the market depends on all parts of a supply chain instead of great efforts a single manufacturer. Competition emerges between different supply chains. The final competitive advantage of a certain product comes from the teamwork of the whole supply chain that is comprised by effective and efficient organizations with different core competitiveness. In order to achieve this kind of cooperation, the different organizations must keep the concept of compatible and coherent goals in mind. So it becomes very important for the whole of the supply chain (the Organization, Customer and suppliers) to appreciate the role of IT and the effectiveness of the SCM. This coordination among all the elements of the supply chain is one of the key challenges of IT to implement SCM. Open corporate culture Corporate culture comprises values, beliefs, and norms of behavior. Some aspects of corporate culture operate at the subconscious level. A consistent corporate culture is very important for the efficient cooperation of an organization’s highly interdependent departments. If there are disparate beliefs, values, and ways of doing things, the different parts of the organization will “pull in different directions” and fight against each other and that will reduce the organization’s effectiveness. The situation with the different organizations in the same supply chain is the same. Modern supply chain management needs conscientious coordination, opening consciousness and cooperative spirit between the members of a supply chain. Framework of opening and flexibility Purchasing and supply today is seen as an integral part of supply chain management in a company. It cannot, and must not, work independently. It must operate within collaborative teams that go beyond the traditional functional boundaries in a firm. These will involve some functions such as marketing, engineering and design, quality management, research & development, production and so on. So as to meet the need of cooperating between the different departments, the structure of enterprises should be open and flexible. Cooperation between enterprises at the same supply chain is also very important. Close cooperation of enterprises is often needed between different departments of the cooperating enterprises. Provisional trans-enterprise and trans-department project groups need to be set up. And these also require open and flexible organizations.