Unit 5-1
Unit 5-1
Supply Chain
Last Modified: 1 September, 2020 1 Comment
This section focuses on how information can make logistics and supply
chain management decisions more effective, considers the role of
information management in the development of supply chain strategy,
and then discusses the issuers from an operational perspective.
Information Technology in Supply Chain or
Logistics
The following are the reasons why information technology is important for
the supply chain:
1. Effective Information Management
Effective information management can help ensure that a firm meets the
logistical needs of its customers.
The logistics managers are responsible for these activities and time and
accurate flow of meaningful information enable them to successfully
implement the same.
The logistics activities assist significantly in meeting customer needs and
an accurate and relevant information system can facilitate the logistics
mission.
The ability to integrate and thus leverage the power of the technologies
makes the firms more successful than other firms that do not have such
abilities.
The cost and efficiency of the entire communication can result in loss of
customers or excessive transportation, inventory, and warehousing costs
together with possible manufacturing inefficiencies caused by frequent
changes in the production line.
The order processing and information systems form the foundation for
logistics and corporate management information systems.
6. Competitive Advantages
Computer-based decision support systems (DSS) support the
executive decision-making process in logistics and supply chain
management.
Conclusion
Many firms today effective management of logistics and supply chain
activities as a prerequisite to the achievement of overall cost efficiency and
as a key to ensuring their ability to price their products and services to meet
and beat the competition.
The logistics competencies of a firm provide unique ways in which the firm
is able to differentiate itself in the marketplace.
Customer Relationship
Management and Supply
Chain Management
What is customer relationship management in supply chain management?
CRM also helps companies improve their sales and revenue by making the supply
chain more efficient.
It provides a way to make sales and marketing more targeted and impactful.
Customer Relationship
Management and Supply Chain
Management Key Terms
Before we get into the details, let’s define some key terms:
The system helps them resolve customer issues quickly and efficiently.
Manufacturing operations use the CRM system to track inventory, ensure that
products are made correctly, and ensure that orders are fulfilled quickly and
efficiently.
Finance uses the CRM system to manage customer accounts and transactions.
The system tracks all of the money flowing in and out of the supply chain.
It also provides reports that help businesses analyze their financial performance.
They also allow businesses to target their marketing efforts and make them more
efficient. Additionally, they help businesses develop better relationships with their
suppliers.
A CRM system can help businesses identify the best ways to improve customer
satisfaction, retention, and loyalty.
It also helps businesses analyze data to identify trends that may affect sales or
revenue.
Supply chain sustainability aims to reduce the impact of factors such as pollutants,
deforestation, ozone depletion and global warming affecting the environment. Solutions
could range from intelligent packaging such as from using right-sized packaging boxes,
avoiding oversized boxes for smaller consignments to using recyclable paper pads as
replacement for plastic packaging.
The other big revolution that’s slowly picking is the use of electric-powered fleet instead of
fossil fuel-based fleet to lower carbon emissions. However, EVs can also provide better
performance in terms of maintenance and longer range per charge.
Manufacturing industries bring onboard suppliers that have a proven track record of
implementing green practices in their offices and processes, thereby incorporating
environmental consciousness as a factor or metric for supplier selection.
Figure 1.
Green supply chain makes the applications of the key sustainable development
strategy outstand. It emphasizes how green practices can be adopted in firms to
mitigate the environmental degradations and increase the economic and operational
performance of firms, while Figure 2 illustrates a simple model of green supply
chain. Khan et al. [2] have explained the concepts of sustainable and green supply
chain management:
Figure 1.
Green supply chain practices are unable to be adopted without active participation of
customers and suppliers [19, 20]. Strong collaboration with suppliers enhances incentive
systems, boosts the adoption and development of innovative ecofriendly ideas. Technologies,
green partnership agreements and openness in implementation of innovative green practices
may generate enhancement in operational and environmental performance so as to achieve
economic goals of firms [21].
2.4 Competitiveness
A number of published researches showed that competence and relevant elements could play
a part in green practices implementation in their supply chain [22, 23]. Competitiveness has
been perceived as a significant factor to implement green practices rather than organizations’
wish to protect environmental sustainability. Implementing green practices in firms’ business
operations may also be dated back to additional voluntary for competitive factors [8].
2.5 Social
A number of researchers found the significance of societal factors for attaining environmental
friendly practices objectives [15, 22, 24]. With growing attention of regulatory bodies and
awareness of customers on environment, firms have to exchange end-to-end information
regarding their supply chain operations’ effect on local community and people lives [25]. In
addition, NGOs (nongovernment organizations), electronic and social media are more
effective in exerting pressure on firms to adopt green practices.
2.6 Regulatory
A DVERTISEMENT
The actions directed to all incorporates and consumers comprise green marketing, a
broad range of marketing activities (e.g., planning, production,, process, price,
promotion and after-sale service) designed to illustrate the goal of organization to
mitigate the harmful effects of their products [36]. Green marketing practice
promotes the products with environmental friendly properties [8, 37]. It contains
the activities that can satisfy human desires of minimum negative effects on the
environmental beauty. In addition, green marketing enhances firms’
competitiveness and financial and environmental performance with positive
corporate reputation and image [35, 38].
Green distribution and warehousing can reduce the waste and play an important
role in energy reduction and value addition of green products in warehousing
significantly improve overall performance of organization with better corporate
image [7]. Green distribution helps enterprises to obtain superior financial and
environmental performance [42, 43].
Luthra et al. [8] highlighted that 80% impacts on environment from product and
process related could be controlled with the adoption of ecological design in
supply chain management. Ecological design incorporates many ideas such like
using cleaner technology processes, green raw material and components [28, 44].
Green design of products reduces ecological impacts of products during their life
[8, 45]. In addition, green design of products also supports reusing, recycling and
remanufacturing of products, which not only helps firms to improve their
environmental performance but also provide opportunity to reduce their costs [1].
Undeniably, global logistical and supply chain operations mainly depend on energy
as well as fossil fuel, which are the main cause of climate change, global warming
and pollution with greater carbon and greenhouse gas emissions [46]. Renewable
energy and biofuels are required in supply chain operations so as to obtain
sustainable environmental and economic growth [48]. Anable et al. [49] highlight
that logistics related activities consume greater energy to accomplish their task.
Renewable energy and biofuels improve economic performance of firms and also
reduce carbon emissions. In addition, fossil fuel is more expensive than biofuels
and green energy sources [50]. The strict governmental policies together with
customer awareness build pressure on corporate sector to use biofuels and
environmental friendly energy in their supply chain operations. The bioenergy
mitigates the carbon emissions and also improves profitability of enterprises with
better image and reputation building [7, 46].
The cost minimization is considered as the most important factor for firms to
implement green practices in their supply chain operations. The implementation of
green supply chain initiatives would help to cut down the costs of packaging,
components and materials due to use of reused, recycled and remanufactured
products. Khan et al. [2, 46] highlighted that green practices provide opportunity to
capture new markets and export to pro-environmental countries, while polluted
firms are unable to export their products in pro-environmental countries such as
USA, Germany, UK and Poland. Undeniably, green supply chain management
practices have been a tool for firms to decrease their products’ cost, enhance
profitability and increase market share [51]. On the other hand, to improve social
performance, firms also adopt green practices in their business activities. Social
performance indicates improvement of people’s quality life standard without
compromising on environmental beauty. In addition, social performance includes
the enhancement of firm image and the improvement of environmental
sustainability, as well as reduction in environmental risks [29].
By adopting GSCM practices, firms may enhance their operational performance
through improving products quality and improving delivery service [15]. Green
supply chain management initiatives also help organizations to improve their
environmental performance such as reduction in carbon emissions, elimination of
waste from end-to-end supply chain, effective and strong collaboration with
suppliers would decrease their communication costs and easily promote reuse,
recycling and remanufacturing [52]. Environment management system (EMS)
integrated into firms’ manufacturing strategy will assist the firms to enhance its
ecological performance [53].