Information Systems Assignment
Added on 2020-05-04
7 Pages1826 Words112 Views
Running Head: INFORMATION SYSTEMS1Information systemsNameInstitution
INFORMATION SYSTEMS 2Information systemsIntroductionTake a scenario where the alarm clocks reminder you that you should be preparing for work. You quickly switch the coffee maker on and a moment later the aroma of your favoritecoffee fills the house. Have you taken time to reflect how the coffee left the factory to your house and other households in the world? It takes a great deal for any product to move from the factory to every household. Supply chain, which comprises of demanding forecasting, planning, logistics, and procurement, plays a bigger role in moving the coffee globally to our kitchens. Supply Chain Management (SCM)Supply Chain Management (SCM) refers to an oversight of information, material, and finances as they move in a sequential process from the supplier (raw materials) to the consumers via the manufacturer and wholesaler. SCM involves integrating and coordinating the flow of items which the company and the industry as well as among firms (Ballou, 2013). The main goalof SCM is to ensure that products are available when needed by the consumers while the supply cost is reduced (Madenas, Tiwari, Turnera, & Woodward, 2014). The flows of SCM is divided into the product flow, the information flow, and the finances flow. The product flow involves the movement of products suppliers to the customers and returns from the customers to the manufacturers. In the other hand, information flow entails transmitting orders and delivery status. Likewise, financial flow involves credit terms, title and consignment ownership and payment schedules. This study focuses on analyzing the informationflow aspect of SCM (Sweeney, 2006).The information flow aspect of SCM
INFORMATION SYSTEMS 3The flows of information in the supply chain are always bidirectional between all the parties involved: They have to share information to and fro. Experts hold that information flows play an integral part in the success of the SCM activities such as the flow of material and finances. The movement of finances and materials cannot take place effectively without an effective plan for movement of information. In other words, without effective information flows, the entire SCM chain would fail (Christopher, 2005). Recent studies have found out that poor management of information prompts companies to hold the excessive level of inventories leading to increased operating costs. In the context of information management, when the flow is smooth, the relationship with the wholesaler, retailers, and consumers would be enhanced. In return, the demand would increase (all other factors remaining constant) hence a reduced inventory level. Likewise, when the demand is high,effective flows of information ensures that there is a smooth flow of raw materials from the suppliers. Therefore, good information flow is an effective substitute for inventory and finance flow management (Habib, 2011). Information Flow: A Case of Walmart Stores, Inc.The corporation’s information flow system is based on the point-of-sale barcode reader which are used to feed data. The same system also links stores, vendors and distribution centers. Likewise, Walmart has also developed a vendor managed inventory (VMI) system, a retailer-supplier partnership, which have enhanced its connection with major suppliers. The success of the system has been enabled by the sharing of the point of sale information collected from the retailers with the suppliers.
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