Ever wondered why companies have increased spend on IT from 2.6% in 1970 to 80% in 1999?

There are several reasons why IT has been helping the supply chain for several companies:

·         Focused e-business solution improves customer satisfaction

·         Improved efficiency allows company personnel to focus more on essential business activities

·         e-Business solutions improve information quality

·         They support planning collaboration, and improved agility of the supply network ^[2]

IT with customers ^[3]

IT appears to be an important factor to customers. IT has enabled collaborative relationships. IT has affected companies in the following way:

• Enhances inventory management
• Increases processing capabilities of suppliers
• Decreases transaction costs
• Optimizes shipping and reduces order delays and inventory emergencies
• Decreases the delivery lead time and inventory

IT on Operation

IT introduces a human element in buyer-supplier interaction, building trust by

·         minimizing delays

·         improving the communication between vendors

·         optimizing transport

References

sloanreview.mit.edu/article/the-trouble-with-enterprise-software/

http://lrg.tkk.fi/logistics/publications/IT_in_SCM.pdf

http://www.idosi.org/wasj/wasj4(1)/13.pdf