Supply Chain Management Essay
Supply Chain Management broadly comprises from the effective and efficient planning and to the management of various activities drawn in resourcing and procurement, movement and storage of materials, conversion of these raw materials into transitional or the so called work-in-progress inventory to the final output or the finished products. Subsequently, it also encompasses successful distribution of these finished products to the point-of-consumption, the customers.
Thus, this gives a crossing point among the information systems involved in all other business functions. Having this as the focal point will consequently help the company achieve each goal in financing and engineering since information systems involved in supply chain management reduces cycle times and cash management as well.
Let’s have a medical supplier as an example on how information systems contribute to a competitive advantage. In Finance, as a supplier, use of appropriate financial information systems in managing cash outflow for payables and supplies bought is significant to balance customer sales orders from orders replenishment stock while making surplus on cash inflow through sales and invoices. As for engineering information systems, the company will be able to design new products through identification of various user needs thus developing a prototype and concept, create testing and other
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While for the Supply Chain Management, manufacturing and inventory control information systems help staging area operations such as procurement of raw materials, processing and delivery of stocks and lessen phases in the warehouse data repository. These data will be transformed into information and makes these readily available to users in the supply chain such as the purchaser and warehouse-in-charge. This is very effective in minimizing costs in maintaining inventory and supply.