An Investigation on the benefits of ICT deployment in Supply Chain Management (SCM)

Abstract

Objective: The objective of the paper is to investigate the influence of deployment of Information and Communication Technology (ICT) tools in a supply chain context. Methods/Analysis: The influence of deployment of ICT in Supply Chain Management (SCM) is studied using System Dynamics (SD) methodology using the tool, Causal Loop Diagram (CLD) using software Vensim. Findings: SCM discipline is grappled with dynamic and operational changes and challenges and this unpredictability can be understood better using SD. ICT capabilities fundamentally improve supply chain integration and performance. ICT adoption for SCM improves collaboration, workflow and decision-making which lead to cost savings; improved operational efficiency and inventory visibility. One process in SCM namely inventory control is described using SD. Introduction of a parameter, ICT capability dramatically changes the context and gives rise to new positive feedback loops Novelty/Improvements: The paper uses CLD for ICT influence on SCM process of inventory control. This can be extended for all supply chain management processes in both planning and execution. Case studies with the influence of specific ICT tools like RFID, Cloud, Social Media, Business Analytics, Mobile technology and Multi-agent systems are also possibilities for extending the study. Supply chain managers can deliberate on decisions, strategy, issues and policy by developing scenarios using SD tools and software packages. However the research limitation is that this is a simulation in a specific supply chain context. Generalization of this scenario may not be possible.