Question

discuss the role of information systems on improving logistics supply chain performances

Answer 1

Supply chain management involves many activities like material sourcing, production programing and physical distribution system, all of that area unit these days unceasingly supported by data systems. corporations these days have to be compelled to adapt their provide chain and business model to the dynamic surroundings and increase cooperation and data sharing. within the following the positive and negative influences data technology has on the performance of the provision chain are going to be examined.

Increase in provide chain potency through data system-

1- exaggerated management OVER PRODUCTION
Use of data technology in provide chain management provides improved visibility and answerability. so as to bring potency to the full production method, it's vital that a producing company have clear sight into the present stage of in-production product, foresee any potential issues or delays they may face and be able to align production schedules consequently. Use of technology will bring the mandatory transparency into the total method. It permits the producing corporations to own higher management over product flow and data flow across the provision chain.

2- higher INVENTORY MANAGEMENT
Maintaining best levels of inventory could be a challenge moon-faced by all makers. whereas excess inventory ends up in risk of waste associated for an exaggerated would like for assets funds, too low of inventory might result in stoppages within the production cycle and of losing business through stockouts. With the employment of technology, makers will produce pliant business processes that offer flexibility to handle varied demand things. The analytics can assist you succeed money goals with foreseeable success by managing your inventory and sales orders effectively.

3- exaggerated COLLABORATION BETWEEN provide CHAIN PARTNERS
With the IT enabled, real time data sharing, makers will increase the collaboration with their key partners. makers may track activities through the total provide chain, with visibility into provider finish and distributor processes. Such data will facilitate the makers in creating additional wise to selections and higher forecast future demand. This helps management the producing method and ends up in lower prices through more practical selections in procurance and contract management.

A new generation of looking choices through eCommerce and mCommerce has created provide chain management an important space of concern for several businesses. it's notably crucial for producing corporations, that area unit heavily obsessed on the provision chain partners to deliver their product. makers, suppliers, retailers, shippers and distributors area unit the foremost stakeholders within the provide chain of producing corporations, that ends with product delivery to the client. With associate increasing stress on technological advancements, still because the changes in client expectations, the requirement for associate integrated provide management has become more and more vital. For producing corporations to make substantial client bases, conversion of business processes has become additional of a necessity than a value-add proposition. This has exaggerated the need for making a digital surroundings that seamlessly integrates the operations meted out by numerous entities within the provide chain.