Question

Describe the structure and characteristic of supply chains and explain any challenges. Based on these challenges, describe how information systems can enhance supply chain performance. Give specific examples.

Answer 1

answer-

supply chain is the business chain which involves activities of transporting the finished products from the production point means producer to consumption point means end consumers.

structure of supply chain in general-

1. supplier & manufacturer are start points of supply chain in which supplier provide raw materials to producer & manufacturer produces them into finished products.
2. whole seller is the member of supply chain who purchases the products of manufacturer in bulk or huge quantity.
3. retailers are those which purchases the products either from manufacturer or whole seller.
4. customers are the last member of supply chain structure to whom product is transferred.

characteristic of supply chains-

• supply chain helps to transport or distribute the products of the company to end customers.
• supply chain helps in inventory management because it decides how much to produce to meet the demand & how much to carry the stock.
• supply chain is flexible as it can be changed with the changing environment.
• supply chain helps to meet the demand of the customers.
• supply chain helps the business to sustain for long period of time because it provides the way to distribute its products at the right time, at the right place.

there are some challenges in supply chain-

• challenge of communication gap among members of supply chain.
• relationship conflict between producer & supply chain members.
• lack of customer knowledge.

these challenges can be overcome by information systems also can enhance supply chain performance.

use of information system would help to store & process the customer data which would help the producer to make effective decision so that customer would get what they want.

use of information system would help to share relevant information from producer to supply chain members which would remove the communication gap & supply chain members would work as per the message & performance of supply chain would improve.

when communication gap is removed then conflict would be less & supply chain would perform better.

*hope above answer in my own words would help you.good luck & rate.