Integrated Information Technology

One of tools that help to increase the effective in supply chain management and need a good coordination among departments is the integrated information technology. As the high competiveness in globalization market, a wide range of information shared among supply chain network is necessary. This technology will provide the opportunity to obtain the data in each segment or product line in the real time basis that benefit to whole network including suppliers, manufacturing, warehouse and customers as the result of lower cost, higher profit and increase the effectiveness and efficiency of operation in the supply chain system. On the other hand, it is not easy to implement this tool into the system. The limitation of information sharing is the major problem of using this tool. The level of security or confidential data will limit the transparency of information sharing among supply chain partners. To overcome this problem, we need to build trust with in the network such as write an agreement of permit in sharing information and limitation of use. This will help to avoid a misuse confidential information for own benefit that against the benefit of the other parties.

Introduction

The new integrated information technology in supply chain management show the way for organization to improved their efficiency and effectiveness in a firm logistics system compared to the existing one. If firms can utilize the new system in an appropriate way will aid to space reduction, product quality improvement, enhance productivity, utilize machine operation and increase flexibility in the process. Additionally, firms can reach economic of scale by planning a long term strategy and build relationship with its network such as suppliers to continually improvement in the integrated logistic information system. (Brace, Coleman, and Bhattacharya 1995) For instance, we will safe a large space to keep enough products to serve customers demand that lead