MIS Usage in Supply Chain Management (SCM) - Research Paper Example

 Introduction Supply chain management (SCM) focus on ascertaining a stable, reliable and transparent supply chain processes (Gunasekaran & Sandhu 331). Due to expansion of business activities and the increase in complexities and competitiveness of the businesses, efficiency in business operations requires an efficient supply chain management. Management of information system results to an increase in efficiency of the business operations by ensuring. Therefore, integrating supply chain management and management of information systems results to increase in business efficiency because it ensures that proper coordination of all business components and a timely flow of information from the source of information to the end user (Misuraca 191). This enables all the parties involved in the supply chain process to obtained adequate information regarding the supply chain process and ensure quick decision making that results to efficient and reliable supply chain system. In supply chain management, different entities are involved in the acquisition, processing and delivery of products in the supply chain process (Wisner 104). The use of management of information system in supply chain management of an organization like the police department helps to straighten value chain operations of the organization. Use of management of information system increases the organization’s competence Due to effect of globalization, organizations are experiencing stiff competition from across the globe. In order for such organizations to survive in a global competitive market, there is a dire need for efficiency in the acquisition and distribution of merchandise (Gunasekaran & Sandhu 391). Therefore, application of management information system in supply chain management has resulted to increase in competitiveness of the organizations by ensuring that suppliers are aware of what their customers want and the time at which the supplies should be delivered to the clients. In addition, management of information systems is helping the suppliers to gain knowledge about the most reliable sources of merchandise at the cheapest cost. Sourcing the merchandise from the cheapest sources and supplying them to the clients at the appropriate time and the place is of the essence for the survival of the business in a competitive international market (Misuraca 196). The use of management of information system in the police department assists the department of defense in ensuring that the soldiers have the suppliers they want at the most appropriate time and at the best price. This will ensure the defense force is adequately equipped at all times. Management of information system increases efficiency of the business The organizations are striving for efficiency in their operations. The desire for achieving the best performance has resulted to complication of the processes through which information flows from suppliers to the consumers. Consequently, business managers are developing data bank to assist them in determining their clients and the specific items that those clients would like to purchase (Lambert 173). The use of supply chain management in an organization enables supplier improve the market performance by controlling their inventory and at the same time reinforce their interactions with clients. The police department requires information regarding the type of supplies needed by the soldiers and the time when those suppliers should be delivered (Wisner 114). The use of management of information system in supply chain management in the police department is of great significance for increasing performance of the police officers. The management of information system enables the department of defense to control all the data regarding what the department requires and the time when those supplies are needed. Management of information system aid in distribution of supplies Most of the organizations are engaged in various supply chain activities such as distribution, storage, transfer of merchandise from one location to another, taking stock inventory and ensuring the safety as well as sufficiency of the inventory (Gunasekaran & Sandhu 357). All these supply chain activities require adequate information to ensure smooth operations of the businesses. For example, police department is responsible for acquisition of merchandise on behalf of their clients (police officers). Those supplies are obtained from one source and stored or distributed to various stations. The purchase, storage and distribution of those goods from one location to another involve a lot complicated processes that demand effective management. The use of management of information system in the police department assists in sourcing, storing and distribution of merchandise across various police stations without failure of the process (Lambert 178). Therefore, management of information is assisting the police department to have effective control of merchandise as they flow in and out of the department. Inefficient flow information could result to excess supply in some stations and inadequate distribution to other police stations hence resulting to the high cost of distribution and inefficiency of operations in the station with inadequate supplies. Management of information system assist is loss reduction Organizations suffer immense loss during the purchasing and distribution of merchandises. The loss is either caused by theft of inventory being purchased of supplied or by unnecessary damages caused on the goods being distributed. This loss of merchandise results to inefficiency of the organization and may cause the organization to lose its clients (Gunasekaran & Sandhu 365). During supply chain processes, most organizations engage a lot of activities to minimize the loss in the supply chain activities. Businesses are using management of information system to keep proper record of the goods either leaving the store or those that are being brought into the department. The use of management of information system in organizations is helping in reduction of theft cases by ensuring proper tracking of goods belonging to the organization. For example, organizations are using radio frequency identification devices (RFID) to keep track of the movement of merchandise either during transit or storage in order to minimize the cases of theft (Idea Group Inc 1423). The device detects the signal through electromagnetic fields to send the data of the inventory from the tracking tags embedded on the merchandise (Lambert 184). For example, the department of police uses DFID to track the arms and other merchandise in order to reduce the risk of loss from theft. This procedure saves the department the cost of taking inventory regularly. Management of information system aid in inventory management In order to increase performance of the supply chain of the businesses, distributors and retailers are collaborating in information sharing. The collaboration between suppliers and retailers is saving the time business takes to replenish their stock once it has been exhausted. This ensures the merchandise is available at the right time and place required by the clients (Wisner 127). Consequently, this results to reduction of cost supply chain processes and the cost of maintaining the stock. To ensure effective coordination between suppliers and the retailers, organizations have incorporated management of information system in the supply chain management (Misuraca 201). This enables retailers to receive the stock from the suppliers on time hence lowering the cost of inventory and reduce the time the suppliers take to deliver fresh supplies to the retailers. For example, in the police department, integration of management of information system with supply chain management ensures all police stations have received supplies at the right time. Delay in delivering of essential such as arms may result to terrible loss of lives and other damages. The police officers share information with their seniors electronically through the use of internet or make use of the phone to call to the stations in order to receive suppliers in time. In case of an attack where the police officers are surpassed by the attackers, the police officers can communicate to the base commandant and request for reinforcement (Gunasekaran & Sandhu 371). Therefore, the use of management of information system in the police department help the police officers to request for supplies of ammunitions and manpower in case of the enemies overpower the police officers. Management of information system helps in decision making Supply chain management involves choosing what type of merchandise is required by the clients and how to distribute it to the clients. In addition, the business managers have to decide on where they will source the merchandise and the distribution techniques they will in order to reach the clients. In most cases, the organization will stock their supplies in selected locations where they can strategically deliver to their clients whenever it is required. Therefore, the use of management of information system in supply chain management enables the organization to make such a decision easily (Misuraca 217). The organization is able to determine the most strategic place to store the merchandise from which they can transport to their clients whenever they are required to do so. Also, the organization can be able to determine the best strategy to use when sourcing for suppliers and decide whether to source from and external source or whether to manufacture own products. In the police department, the use of management of information system is of the essence because it enables police officers to decide on where to source their supplies. The information regarding the police department is very essential because it involves a lot of secrecy hence should be handled with a lot of confidentiality. Management of information system enables the police officers to maintain their secrets without any risk of leakage of information (Kildow & Fbci 121). The officers are able to determine what to purchase, how to distribute to their clients and where store the supplies without any risk of exposure of information to the public because otherwise this may jeopardize the security of the state. Management of information system helps in understanding of how the organization operates The efficiency of supply chain management requires a clear understanding of all the processes involved by all the parties concerned (Lambert 186). For example, those who are involved in the acquisition of the stock should be aware of their work and when they should fill the purchase order. On the other hand, those who are concerned with taking inventory should be aware of their work and ensure they communicate to those concerned with purchasing and inform them of the stock level. In order to ensure proper coordination among all the parties involved in supply chain management, there is a need for integrating management of information system and supply chain management within the organization. Management of information system will enable the supply chain managers to understand all the processes involved thoroughly and conduct their activities effectively (Idea Group Inc 1503). For example, use of management information system in supply chain management of the police department enables the police officers to understand the logistics of the police department. This helps to reduce the conflicts of interest among different police officers since each individual involved with purchasing is aware of his or her role in the process. This ensures smooth operations and competent value chain process. The use of management of information system in the value chain management results to proper coordination of supply chain processes in the police department. It ensures timely delivery of information hence resulting to adequate coordination of activities within the organization (Kildow & Fbci 127). Efficiency of operations results to improvement in performance of the organization and reduction of cost of supply chain operations. Conclusion Use of management of information system in supply chain management helps the organization to increase its efficiency and reduce competition. Management of information system in supply chain management results to reduction of cost of operations, and helps to determine the time when supplies are needed. It helps those involved to understand how the organization works. The supply chain managers are able to decide on how the supplies are distributed to consumers and the means of distribution required. In addition, the organization is able to maintain appropriate stock and was to source the supplies for the organization. The management of the organization can be able to trace the movement of the suppliers hence reduce loss caused by theft. Works Cited Gunasekaran, Angappa & Sandhu, Maqsood. Handbook on Business Information Systems. World Scientific (2010). 324-397 Idea Group Inc. Enterprise Information Systems: Concepts, Methodologies, Tools and Applications. Information Resources Management Association (2011). 1324-1642. Kildow, Betty, A. & Fbci, Cbcp. A Supply Chain Management Guide to Business Continuity. American Management Association, New York (2011). 117-167 Lambert, Douglas, M. Supply Chain Management: Processes, Partnerships, Performance. Supply Chain Management Institute (2008). 165-213 Misuraca, Gianluca, C. E-Governance in Africa, from Theory to Action: A Handbook on ICTs for Local Governance. International Development Research Centre, Ottawa (2007).187- 224 Wisner, Joel, D. Principles of Supply Chain Management: A Balanced Approach. Cengage Learning, (2011) 84-135 Read More