Supply Chain Management and Information Flow

This paper analyzes the importance of information flow in supply chain management and discusses current trends and future practices in the field. It highlights the five important information flows in a supply chain and the technologies adopted by organizations to improve information gathering and exchange mechanisms. The paper also discusses ethical considerations and the impact of globalization on supply chain management.

SUPPLY CHAIN
NAME
INSTITUTION

INTRODUCTION
• Supply chain management is the comprehensive systematic approach that is
used in managing the flow of money, information, as well as materials between
the consumer and the supplier.
• Supply chains are dependent on accurate and timely flow of information. The
paper conducts a deeper analysis of supply chain management and information
flow.

Importance of Information Flow
• Information flow is very critical to the performance of a SC since it offers a ground on
which managers can make decisions
• Nonetheless, information flow facilitate working together of the supply chain drivers
with the primary objective of developing an integrated and coordinated supply chain
(Cannella, Framinan, Bruccoleri, Barbosa-póvoa and Relvas, 2015, pp.122).
• There are five important information flows in a supply chain:
• Production flow
• Financial flow
• Information flow
• Value flow
• Risk flow

Improving Information Gathering
• Several technologies have been adopted by organizations to improve information
gathering and exchange mechanisms (Prajogo and Olhager, 2012, pp.516). Such
technologies include:
• Distribution requirement planning: a management procedure that provides a
connection between operations and transportation requirements
• Marketing information system: enables organizations to manage a large
amount of data

Ethical Consideration
• The way organizations conduct their market research comprise of many serious
ethical consequences hence affecting the lives of consumers (Irizarry, Karan and
Jalaei, 2013, pp.252). Such ethical considerations include:
• Use of deceptive practices: most methods used to gather and access
consumers' data can result to deceptive practices and lack of honesty.
• Breaching of confidentiality
• Invasion of privacy is also an ethical issue that companies are facing

Current Trends and Future Practices
• IoT Analytics: By 2020, it is estimated that there will be over 20.4 billion internet of things
devices
• Augmented Analytics: It is effective in assisting data scientists automate processes
associated with preparing and analysing data along with building models.
• Data Ops Data Analytics: Using the technology assists organizations to build data analytics
platforms with ease.
• With new regulations in place, future practices in data gathering and analytics to change (Li,
2012, pp.62). For instance, organizations along with data analytics will be required to put in
place processes, including internal records to ensure that they comply with these regulations.

Conclusion
• Globalization has resulted in many advancement in the supply chain of many
organization and this has led current trends and future practices in supply chain
such as IoT analytics, augmented analytics, and data ops data analytics.
• Organizations have incorporated IT systems such as distribution requirement
planning and management information system to improve speed and accuracy
and help organizations to anticipate for future demands.

Bibliography
•Cannella, S., Framinan, J.M., Bruccoleri, M., Barbosa-póvoa, A.P. And relvas, S., 2015. The effect of
inventory record inaccuracy in information exchange supply chains. European journal of
operational research, 243(1), pp.120-129.
•Irizarry, j., Karan, E.P. And jalaei, F., 2013. Integrating BIM and GIS to improve the visual
monitoring of construction supply chain management. Automation in construction, 31, pp.241-254.
•Li, l., 2012. Effects of enterprise technology on supply chain collaboration: analysis of china-linked
supply chain. Enterprise information systems, 6(1), pp.55-77.
•Prajogo, d. And olhager, J., 2012. Supply chain integration and performance: the effects of long-
term relationships, information technology and sharing, and logistics integration. International
journal of production economics, 135(1), pp.514-522.