A proper balance between the fully-grown business processes and the recognized Information Technology being used is needed in order to attain best supply chain performance results. This is because the improvement in the performance of the supply chain is dependent partially on the strength of the Information Technology used and partially it is dependent on the levels of business processes of the company.
Accompanied with the investment in the IT technology, a supportive and dedicated staff is also very important. The need for the simultaneous investment in the IT technology and business processes is because IT just provides with information necessary to function. But to make the most of this information, proper business processes re required. This is the reason why a combination of IT technology and business processes results in best supply chain performance results.
Thus, it is important to realize that the business processes of the company and the IT infrastructure together re responsible for any inefficiencies or improvements in the results of the supply chain management and processes. Investing in either one of them lead to inefficiencies in the supply chain processes.
Most of the articles that were reviewed during the course su…
The different cases of the different companies, for example, Toyota supply chain, Dell, pefa.com and GM support the claim that for the proper management of the supply chain of the organizations, investment in IT is accompanied by the investment in the business processes.
Toyota, as we have studied posses a very efficient supply chain system. Toyota uses the just-in-time inventory method for its supply chain management. And the most important thing is that without the investment in IT and business processes both, a proper supply chain system is not possible. Thus, one of the most successful company. Toyota, also believes in the simultaneous investment in the business processes s well s in IT.
The same is the case with one of the market leaders in computer hardware/software company, Dell. Dell offers the facility of building your own system online. For providing such a facility, Dell of course needs mastery in its supply chain processes. Dell also has invested both in IT and has also given proper attention towards its business processes for building such n efficient supply chain system that can predict and forecast the customers’ requirements.
Other examples of such companies are Wal-Mart, pef.com, peapod, HP and GM. Although GM dint had a very efficient supply chain system but after the formation of NUMMI, GM adopted the best practices of Toyota and was able to form such n efficient supply chain system that remains unmatched. Same is the case with pef.com which is n online auctioning for the fishers. possess such an efficient supply management system that is not possible without simultaneous investment in IT and business processes both.
Article 2: Creating and Sustaining the High-Performance Business: Research and Insights on the Role of