Pan-Pacific Conference XXXIV. Designing New Business Models in Developing Economies

Supply Chain Materials Flow and the Use of Information Technology
Davè, Dinesh
Appalachian State University
Vannoy, Sandy
Appalachian State University
Ken Corley
Appalachian State University
Dinesh Davè, Appalachian State University, Department of CIS & SCM, Boone, NC 28608 USA 828-262-6239
ABSTRACT
The objective of the current study is to discuss the use of
information technology in enhancing the materials flow
in supply chain management. The flow begins from the
raw material and it moves through the chain of supply.
The materials may move either domestically or globally.
Therefore, organizations may gain benefit by employing
appropriate available technology to manage the
movement of materials effectively. The optimum
utilization of technology will enhance cost and customer
satisfaction. The paper will discuss technology
pertaining to materials flow of supply chain including:
Radio Frequency Identification (RFID), Automated
Picking and Put Systems, Automated Transport Systems,
Robotics, Warehouse Management Systems, Drone, and
other technologies.
INTRODUCTION
Supply Chain Management has gain a significant
visibility in last decade and it is becoming a vital
function of organization. Since globalization is
becoming an integral part of many organizations, supply
chain has been receiving importance within the
organization. Recently, upper management and
executive of many organizations have strong supply
chain management background. Supply chain
management describes the coordination of all activities
starting with raw materials, production, warehousing,
logistics, and gaining highest level of customer
satisfaction. With increasing importance of
sustainability, supply chain plays a vital role in recycling
or reverse supply chain.
A supply chain may include suppliers, manufacturers,
distributors, wholesalers and retailers working together to
deliver products and services to final consumers. The
objective of supply chain management is to enhance
organizational performance as well as improve customer
satisfaction by efficiently delivering products or services
to customers while each participating organization in the
channel earns appropriate profits [1]. Additionally, the
objectives of supply chain management include
maximization of responsiveness and flexibility to
customers; minimization of cost, cycle time reduction,
and access to inventory as well as maximizing capacity
utilization and return on assets. A supply chain is a
network of retailers, distributors, manufacturers,
logisticians, warehouses, and companies, which are
engaged in manufacturing and shipping products or
services.
Supply chain management is a systems approach of
managing the entire flow of information, materials, and
services from raw-material suppliers through
manufacturing facilities and distribution centers to the
final consumer. Most importantly, supply chain
management involves the flow of material, information,
and finances in a network consisting of manufacturers,
distributors, suppliers, and customers. Rai et al [2]
suggests that integrated information technology
infrastructure enables firms to develop higher-order
capability of supply chain process integration. This
capability enables firms to split information flows from
physical flows, and to share information with their
supply chain partners in order to create informationbased
approaches for superior demand planning, for
staging and movement of physical products, and for
streamlining voluminous and complex financial work
processes. Materials flows may be viewed as one of the
most inherently complex issues because it, involves the
movement of intangible and tangible goods that range
from raw materials to finished goods to be delivered to
customers.
REFERENCES
[1] Sahin, F & Robinson, E.P. Flow of
coordination and information in supply chains:
Review, implications, and directions for future
research, Decision Sciences, 2002, 33(4), 505-
536
[2] Rai, A., Patnayakuni, E. & Seth, N. Firm
performance impacts of digitally enables
supply chain integration capabilities, MIS
Quarterly, 2006, 30(2), 225-246.
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