How does ICT enable Supply Chain Integration and Agility?

How does ICT enable Supply Chain Integration and Agility?

Introduction

It is practically claimed that information communication technologies (ICT) will be for the providence what move and machine power were to the industrial revolution (Van Hoek 2001 ). The new economy is increasingly focused on knowledge development and distribution, use ICT and software to drive an innovation explosion (Quinn et al 1997 ). The deployment of ICT is impelled by the desire to reduce cost, increase efficiency and alter communications.

militant success, to a large extent, depends on how well the entire write out chain delivers value to its ultimate consumers, relative to its competing supply chain (Christopher, 1998 ; Clark and Hammond 1997 ). ICT and specifically e-business enhances channels to market, integrating the value chain and intersection industry.

Competitive advantage is suggested to comprise of three dimensions:

Figure 1 Treacy & ampere; Wiersema 2002 Competitive strategies model

This paper will look at two chance upon areas of supply chain development, agility and integration and how ICT is a aboriginal enabler in meeting Supply chain Management cite objectives:

1.Getting the right product to the right place at the to the lowest degree cost

2.Offering the right customer service with the minimum inventory

3.



Reducing cycle quantify (Katok 1998 )

Supply Chain Integration

Intense competition is driving companies to evaluate their strengths (core competences Hamel & Prahalad 1989 ), focus on what they do well and use specialist partners to perform the other functions. It is suggested that brand owners will focus on core processes of innovation, product development and brand management, and fulfilment activities much(prenominal) as manufacturing and logistics will be increasing outsourced (e.g. Cisco command appendix 1) (Price Waterhouse Coopers 1999 ).

The supply chain is engaged with the integration of the company, its mesh of suppliers and customers through information visibility and access. ICT...

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