INFORMATION TECHNOLOGY

 

A huge advance in information technology has already taken place in all industries including changes in the logistics and supply chain. A fast data transfer is a result of information technology in supply chain management resulting in increased cooperation. Information technology helps to restructure the entire distribution set up to achieve higher service levels and lower inventory and lower supply chain costs.

RFID-based systems allow for non-contact reading and are effective in manufacturing and other environments where bar codes could not survive. These are used as an alternative to Barcodes to communicate the inventory data to the reader via radio waves. RFID wirelessly exchanges information between a tagged object and a reader. In addition, RFID has improved the ability of manufacturers to better manages inventory levels. It has improved tracking, logistics, and planning operations.

Other than that, new and growing logistics are quite apprehensive and skeptical about transport management, claiming that it will only result in increased expenses that could eventually hurt their business in the long run. This is a common misconception about GPS tracking. The benefits the company can get are improved productivity, better customer service, and real-time monitoring of shipments. Moreover, bar coding is a sequence of parallel lines of different thicknesses with spaces in between. The items of information are in the codified form, which can be read with the help of a scanner. The information printed in the bar code includes country code, manufacturer name, product details, date of manufacturer, and material content. It has increased logistics system productivity through speed, accuracy, and reliability.

At present, market competition is becoming increasingly fierce, and improving production efficiency and reducing operating costs are important to enterprises. Warehouse logistics management is widely used in various industries to design and establish a complete set of warehouse management processes, improve the efficiency of warehouse procurement, reduce the employment of operating funds, turn frozen assets into cash, reduce costs caused by the elimination of warehousing, and improve the company's division important in production efficiency.

In conclusion, the effect of information technology in supply chain management can be mentioned as improving cooperation relationships in internal and external dimensions, increasing responsibility, creating a new relationship with customers to identify their needs, developing sales channels, improving performance, and improving the competitive position of the chain. The pressure to invest in technology is high and will increase. This is because competitors will also be investing in technology to improve the effectiveness of their supply chains and develop new ways of doing business in order to achieve a competitive advantage.