In supply chain management, the main issue of concern is the flow of goods and services as well as information between the members of the supply chain. One of the major retailers in Europe, Carrefour Group, a French international hypermarket chain, has integrated information technology systems in its operations. This has brought about a large impact, especially on the sales volumes, consequently increasing the profits of the group.
The integration of information technology systems enables supply chains to be in a position to avail relevant, valid, and required information on the premises as well as to the public, investors, and other relevant stakeholders. The systems also ease the task of managing the chains given their large market base and numerous transactions and operations. In most the chains, the information technology systems involve web hosting, communication technologies, automation in the factory and premises, computer data equipment as well as other services and hardware.
Years back, the flow of information between various departments, not only in supply chains but also in other organizations, was paper-based. This slowed down the information flow and had other disadvantages as information was easily doctored to suit the interest of a few individuals. With the emergence of information technology, the time spent on the inflow of information reduced, and the implementation of processes reduced and became simpler.
With the use of information technology systems, supply chains are able to attract and retain customers, as services to the customer are fast, efficient, and effective. The information systems have moreover made management simpler as it is easy for managers to manage their human resources well, as well as manage the chain’s inventory from anywhere in the world.
The emergence of IT systems has helped supply chains in almost all aspects. From purchasing, operations, logistics, customer relations, and supplier relations to the firm itself, the importance and role of information technology are paramount nowadays.