A blog post by Preeti Havaldar
but the
one most responsive to change.
- Charles Darwin
With the ever-changing
market demands, it is critical for any supply chain management system to evolve
continuously. The use of Information Technology is considered as prerequisite
for the effective control of today’s complex supply chains. Modern supply chain
management uses advanced techniques such as business intelligence, demand
sensing and network optimization to forecast and manage demand in a better
fashion.
Modern
supply chain management uses powerful data analytics to extract the business
intelligence out of the shared data needed for strategic and actionable
insights into the supply chain network. Such supply chain intelligence tools
operate on real time data which makes the chain intuitive and more responsive
to demand. Business intelligence upgrades the quality and timelines of data and
helps in decision making process. It improves reliability of forecast and
reduces uncertainties in supply chain. Implementation of BI system with
effective tools is critical in the whole process of supply chain management. Automated information processing prevents manual mistakes and results in accurate information.
The success
of these new supply chain management approaches depends on the organizations’
willingness to share supply chain information which is often facilitated by
internet based technologies. Supply chain collaboration requires sharing of
information between supply chain partners, congruence of goals across the
supply chain, synchronization of decision making, alignment of incentives and
sharing of resources. Collaborative communication is required to facilitate
this along with the creation of pooled knowledge base.
In this competitive world,
managing the future is the equivalent of managing information. Intelligent information is
the key to effective decision making. Timely and accurate information is more critical
now than at any time.
With the rate the technology world is progressing, are we heading towards building fully IT enabled supply chain networks in the near future?
References:
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