Info technology Essay Example | Topics and Well Written Essays - 500 words

Info technology - Essay Example This article mainly focuses on the approach to be implemented to improve the Supply Chain Management in order to effectively cut down on excess costs. The author discusses how different companies implement the present Supply Chain Management principle and expect different and better results whereas this is not possible. The author states in this article that to gain better profit margins and to gain a better hold over the market, each company has to come up with its own Supply Chain Management principle which suits that company. Despite the changes such as Globalization, Real-Time Supply Chain Process, Lean Management for Waste Reduction, Accounting Rules and Transparency of sales and acceptance, companies present since ninety years back function the same way as they did then. The author suggests the old business principles to be dropped and new improvised ones be implemented. The approach should be more of a strategy than being jut a principle. The first step is to design the a new architecture for the Supply Chain Management. The second step is to define the process, people and technology. The third step is to use resources effectively. The fourth and the final step is to include the scope, breadth and complexity of supply chains. Discussion: Supply Chain Management involves co-ordinating and integrating the flow of materials, information and finances from supplier to manufacturer to retailer to consumer both within and among companies (Ayers, 2000). The product flow involves the flow or movement of raw materials from the supplier to the manufacturer and the movement of products from the manufacturer to the wholesaler to retailer to the consumer. The information flow involves the flow of information such as transmitting orders and updating the status of delivery. Flow of finances includes transfer of credit, payment schedules, etc. Supply Chain Management makes use of