Management Information System Usage in Supply Chain Management - Essay Example

Management Information System Usage in Supply Chain Management Student’s Name Institution Date Management Information System Usage in Supply Chain Management Supply chain management is the process by which an organization’s supply chain functions are streamlined to help it procure and deliver commodities efficiently. Management information systems (MIS) are automated computerized systems which are used to perform a variety of functions in an organization. Many companies are using MIS in their supply chain functions to make their operations more efficient. These automated systems integrate logistics, storage and payment functions, making it possible for a firm to improve the quality of its operations in the industry. This paper will explore the real time application of supply chain functions in a firm and how management information systems add value to these processes. Supply chain management consists of several functions in a firm namely: procurement, service operations, delivery, storage and selling. Therefore, business firms that use automated information systems for supply chain activities need to identify their internal needs before they implement supply chain systems. This will enable them to focus on important supply chain processes such as information management, purchasing, inventory management, logistics coordination and transport management. Therefore, comprehensive systems enable an organization to monitor all important processes it is involved in which are beneficial to its long term operations (Poirie & Bauer, 2001, p. 89). As a result, an organization is able to make its internal systems more efficient to achieve its objectives in the industry. Supply chain management systems chosen by a firm should help it to minimize unnecessary costs which are likely to have a negative effect on its long term financial stability. Management information systems make it possible for an organization to make all production process more efficient. As a result, a firm needs to be flexible in its approach to help it benefit from automated supply chain processes that are beneficial to its operations. Software used for these processes needs to be customized to suit the organizational environment where it is going to be used. This will ensure all workers, management staff, suppliers and distributors understand how the system works to minimize unnecessary delays that may be caused by low knowledge and skills. An effective MIS system can also be used as a forecasting tool to assess quantities of products that need to be procured by a firm within a given period of time (Poirie & Bauer, 2001, p.92). A firm is able to find out the time that is likely to be taken before restocking is done. As a result, the management of a firm is able to plan effectively on how resources need to be allocated to control unnecessary costs. An effective supply chain management information system should have the ability to go beyond the internal working processes of an organization. It needs to empower managers to make informed decisions about crucial activities within the supply chain that have an impact on organizational performance. Therefore, MIS used in supply chain management should focus on demand, capacity and other factors that affect the performance of a firm in an industry. Supply chain functions need to be continuous and seamless to ensure unnecessary interruptions do not affect a firm’s production cycles. As a result, a firm is able to use real time information sharing and networking through the supply chain management process in place to improve its performance. Therefore, a firm needs MIS solutions which gather data in real time from all functions that are related to supply chain management to improve the quality of its operations (Poirie & Bauer, 2001, p. 95). Managers need to observe efficient time management methods to ensure a firm performs its responsibilities in a particular industry more effectively. Therefore, high quality information systems make it possible for managers to monitor and supervise different supply chain activities at the same time. All supply chain processes need to have time limits to ensure suppliers, distributors and other employees involved perform their duties diligently. Therefore, technologies used for these functions should make internal workings of a firm more dynamic to make it well prepared to deal with various challenges that are likely to occur. An effective supply chain system needs to be proactive to ensure all stakeholders are well prepared to solve different problems that are likely to occur (McLaren, Head & Yuan, 2004, p. 210). Business firms need to encourage collaboration at all levels to improve the efficiency of their supply chain systems. They need to use effective communication tools that enable different stakeholders to plan and review different activities that need to be performed using a supply chain information system. This will add value to a firm’s operations because it will be in a position to make its internal and external functions more transparent to suit the needs of its customers and clients (McLaren, Head & Yuan, 2004, p. 212). A firm needs to use information systems which help it analyze the internal and external workings of supply chain management infrastructure which has been put in place. This helps a firm to find out if its supply chain functions help it satisfy the needs of its customers in the market. As a result, a firm is able to identify weaknesses in the supply chain system. Business firms need to invest in supply chain MIS that is easy to manage and improve depending on a firm’s changing needs in an industry. A firm should be able to make improvements where necessary to ensure the new changes which are made are aligned to its vision in the industry. This approach will make it possible for a firm to institute high quality practices to make it more competitive in the industry it operates in. As a result, an effective automated supply chain system should be well equipped to handle shorter product life cycles and demand uncertainty in the market (Misra, Khan, Singh & Sultanpur, 2010, p. 104). It should also be well designed to respond to increased competition in the market from other firms which target the same consumers. An important factor to consider during the integration process is the ability of different channels that are used to work in harmony without conflicting with long term organizational goals. Organizations need to ensure the MIS systems that are implemented have high security features to limit any form of unwanted intrusion. Data security safeguards need to be put in place to protect the organization from incurring large losses that occur due to poor data management. All important financial records need to be well protected to ensure customers; suppliers and other stakeholders that use the system are adequately protected (Misra, Khan, Singh & Sultanpur, 2010, p. 106). The MIS infrastructure put in place needs to inspire confidence in all users to make them more willing to use it to perform different transactions within and outside the organization. As a result, design features used to put in place supply chain information system should control all data entry and exit points to ensure important company data does not fall into the wrong hands. Other important design features that need to be included in the system should enable it to monitor and identify any data inconsistencies. This makes it possible for an organization to improve its internal data collection and storage capabilities. This improves the quality of all financial procedures in a firm to ensure all processes a firm is involved in are transparent. Managers in a firm also need to improve its internal supply chain functions by collaborating with suppliers, consumers, employees and distributors. This encourages all stakeholders to share information regarding different business processes that affect performance (Sabherwal & Chan, 2001, p. 15). This makes it possible to manage inventory records in a firm and increases productivity and transparency. As a result, the firm is in a position to optimize its performance to make it responsive to different conditions that exist in the business environment it operates in. Business firms that rely on automated supply chain management systems are able to schedule their activities effectively. As a result, these firms create systems that are responsive to customer needs and expectations. For instance, companies which are involved in export operations are able to record customers’ personal details before sending products to them. Therefore, they are able to rely on their partners’ efficient logistics and distribution channels to deliver products to various customers in different locations. They are able to synchronize supplier schedules, production cycles and existing market demand to come up with supply chain systems that are efficient (Sabherwal, R. & Chan, 2001, p. 18). As a result, they are able to improve the quality of service they offer to their customers in different locations which increases their loyalty to the firm and its products. An effective supply chain management system helps a firm to identify existing needs in the market and how they can be satisfied by its production and delivery processes. In conclusion, a firm needs to review the manner in which it engages with its customers to improve its performance in different markets it serves. Efficient supply chain systems make it possible for a firm to institute strong internal and external quality controls to save on unnecessary inventory costs. As a result, a firm is able to identify specific areas that need improvements to strengthen the quality of its operations. References McLaren, T.S., Head, M.M. & Yuan, Y. (2004). Supply chain management information systems capabilities: an exploratory study of electronics manufacturers. Information Systems and eBusiness Management, 2 (2), 207-222. Misra, V., Khan, M.I., Singh, U.K. & Sultanpur, K.N.I.T. (2010). Supply chain management systems: architecture, design and vision. Journal of Strategic Innovation and Sustainability, 6 (4), 102-108. Poirier, C.C. & Bauer, M.J (2001). E-supply chain: Using the internet to revolutionize your business, San Francisco, CA: Berrett- Koehler Publishers. Sabherwal, R. & Chan, Y.E. (2001). Alignment between business and IS strategies: a study of prospectors, analyzers and defenders. 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