In designing how to manage the flow of goods in the supply chain, we always consider the issue of how to process knowledge. reading processing is one of the central functions of SCM. Latest developments and innovations in IT give provided opportunities to increase information processing capabilities, and therefore, to improve the performance of SCM.
IT could engender two contributions in the SCM: one is improvement in information sharing among firms, and the other is act problem identification and optimization.
First, it is argued that the accounting entry of Electronic Data Interchange (EDI) is an effective way of promoting prompt information sharing among firms so that it coincides with the objective of SCM. EDI is defined as connecting computers on- business sector, and exchanging information on transactions among firms (Tsuru, 1998). However, a typical EDI need to introduce a Value Added Network (VAN) or a dedicated line in order to share a network. The large amount of capital needed to invest in a VAN or a dedicated line has been the main reason why the progress of EDI, particularly logistics EDI, has been genuinely slow.
However, such investment problem may also be potentially solved by the spread of Internet technology. reading sharing among firms can be carried out with Web-EDI, instead of a dedicated EDI line. Despite the fact that the Internet presents some problems on security and standardization, Web-EDI is advantageous because of its low cost of investment compared with social structure of a dedicated line, and the enjoyable open nature of the Internet. From these merits, Web-EDI has provided opportunities in promoting information sharing between firms (Tsuru, 1998). Furthermore, the use of the Internet feature with ITS present opportunities to improve the urban logistics systemIf you want to get a full essay, order it on our website: Ordercustompaper.com
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