Implementing IT in SCM—Understanding the Challenges

Abstract

Technology offers the potential to change supply chain networks and processes to reduce non-value adding time spent and to support alternative ways of working. An efficient supply chain network can offer substantial improvements in productivity and in customer satisfaction by making available online, real-time information networked around the organization, giving full supply chain visibility. Thus, information is shared within and between the organization and decisions are made on the basis of this shared information. The technology needed to promote and support change, be it large or small, strategic or operational, if used appropriately offers the chance to improve supply chain, in turn, leading to increased productivity and profitability. However, despite the benefits associated with it, implementation of this technology is not always easy. The present study has been undertaken to understand the challenges faced in implementing information technology (IT)in supply chain management (SCM)and logistics. The study was conducted using the survey method. Data was collected through a structured questionnaire from a sample of 80 Indian companies. Perception map and discriminant analysis were used as the tools of analysis.