2.2 Goals of supply chain IT systems
The new and collaborative business model identified in the previous chapter requires business process integration across corporate and inter-firm boundaries. One pre requisite is information integration. The key drivers of logistics fulfilment excellence identified earlier point to this pervasive attention of firms on information acquisition, processing and utilisation. In the context of supply chain management this requires a system capable of capturing data regarding any product at any stage of the supply chain and making it available to all concerned. There are three basic requirements for this information to deliver 'fulfilment excellence'. These are:
- data capture: All relevant data regarding all products and supply chain system components are to be captured continuously in real time.
- data visibility: This data must be easily available to all concerned at a single point of contact so that they are accessible in real time.
- data analysis: The system must provide the means of making this data actionable. These can then be analysed and converted automatically into meaningful information which decision makers can use for effective decision making, employing sophisticated computerised systems.
The role of information technology in modern business models can be revisited at this stage. The following reading will provide you with industry trends with real life examples of firms gaining competitive advantage by strategic use of IT.
Reading 2.1
Hewitt, F (2001, 1 May). 'After supply chains, think demand pipelines', Supply Chain Management Review . [10 pages]
Activity 2.2
Write a short essay on whether, in your view, the term 'demand pipeline management' is a term more appropriate to describe current views on 'supply chain management'.
Compare the way IT has been used by the following firms for leveraging competitive advantage: Dell. P & G, Matshusita, Harley Davidson. What common element you find in each of these cases?