Free «Impacts of Information Sharing and Ordering Coordination on Supply Chain Performance» Essay Sample

Impacts of Information Sharing and Ordering Coordination on Supply Chain Performance

Modern management of business units is influenced by the rapid development of information technologies, which appear to be one of the major factors of economic globalization. Communication activity of companies has become extremely dynamical and global. Managerial practices are constantly developing due to information obtained in periodicals and on the Internet concerning plans and achievements of foreign and domestic companies. Today, Supply Chain Management (SCM) has become one of the most efficient and widely utilized business strategies. “Supply chain management is the range of processes that manage the flow of goods and services, information and dollars between suppliers and customers, as well as the infrastructure needed to enable this flow” (Performance measurement 2009, p. 3). Information sharing and ordering coordination are valuable components of supply chain performance, which involves utilization of SCM software in business performance.

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The concepts of SCM are interconnected with the concepts of logistics, process, distribution, risk, project, and resource management.

Supply chain performance consists of such processes as planning and forecasting, procurement, manufacturing, transportation/logistics, and distribution and warehousing. Information sharing and ordering coordination make impacts on supply chain performance at all stages of business operations.  Although the processes of information sharing and ordering coordination significantly improve business activities of organisations and provide an increase in their profitability, they can negatively influence SCM, as well, due to requirements for additional expenses, utilization of unreliable software, and specific demographic factors.

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