Use of Information Technology in Supply Chain Management

How to Use Information Technology in Supply Chain Management

Before the Internet became a vital component of a business, the supply chain was quite different from now. It was slow-moving, getting the output (product or service) took significantly longer, and interacting with providers was another issue.

However, the use of information technology in supply chain management has simplified the world of procurement and purchasing through supply chain management, cloud applications, and other forms of IT that assist enhance the efficiency of the supply chain.

What is Supply Chain Management?

What is Supply Chain Management diagram

When referring to two separate things, the phrases “procurement” and “supply chain” are sometimes used simultaneously. As a result, supply chain management and procurement management are entirely different when it comes to leadership.

The supply chain refers to the overall entity/procedure involved in producing a product, from its conception to its actual completion. Procurement is simply one aspect of the supply chain because it involves acquiring the commodities and services required to create the end product.

Why Supply Chain Management So Essential?

Procurement, manufacturing, packing, storage, shipping, risk mitigation, and delivery are all part of the supply chain and it is important because it connects everything and finally delivers the product to its end.

Merits of Information Technology in Supply Chain Management

Use Of Information Technology In Supply Chain Management

Many instances of global sourcing in supply chain management may be found in current times due to the usage of information technology in supply chain management. However, IT may also be utilized in various ways. It may connect multiple areas of the supply chain (such as procurement and production), making data collection more effective and, as a result, analytics more straightforward to execute.

Cost Cutting

Because of supply chain automation, resources are being used more skillfully and effectively, rather than wasting time on long, drawn-out, and tedious tasks.

Increase Productivity

The application of information technology in supply chain management undoubtedly boosts productivity since everything runs more effectively due to automation.

Transparency and Accessibility

Enabling executives and everyone engaged at all supply chain stages to see information results in fewer inquiries, improved cooperation, and a smoother workflow. It also reduces blockages and waits times because managers do not have to wait for data to be given to them to keep the operation moving.

Features of Supply Chain Management Software

Having the correct software is essential if you want to effectively learn about using information technology in supply chain management. Of course, each software suite has its unique set of capabilities, but while shopping around, you should keep a few crucial aspects in mind. These are some examples:


Your software should be able to forecast procurement and manufacturing needs for both raw resources and finished items with reasonable accuracy.

Inventory Control

You would like to be capable of managing your inventory, including stocked components, natural resources, and spare parts, as well as your investment management.

Return Administration

When this occurs, you must process insurance claims or exchanges for damaged products.

Supervision of Logistics and Shipping

A substantial part of storage and shipping management will be included in good supply chain software. Depending on the severity of your firm, your usage of information technology in supply chain management may tend further towards procurement, manufacturing, or even a different component of the distribution chain, so you’ll want software that reflects your genuine needs.

Contact Nketechnica today to learn more about using information technology in supply chain management or schedule a software demonstration. We urge you to rethink your approach to procurement.

Leave a Comment

Your email address will not be published.