Information systems (is) in the supply chain management (scm): A case of liquefied petroleum gas (lpg) of bangladesh

Abstract

A supply chain is the set of values adding activities connecting the enterprise’s suppliers and its customers. Flow of Information has become a crucial function in setting objective, drawing strategy, taking right decision regarding supply chain of LP Gas throughout the whole country by linking the supplier, manufacturer, distributor, dealer/ retailer and customer to achieve optimum productivity, overall satisfaction and joyful relationship at competitive costing. As LP Gas is a necessary commodity, quick and effective information system helps a manager to understand the customer response, their demand, inventory in stock, amount to be produced, time frame and location of delivery. This study, we have focused on application of information systems in the supply chain of LPG industry. Here we used multi-method to get the best result. The study is compiled with the help of both primary and secondary data. We have collected data from 152 respondents in the relevant field. To achieve objective properly we developed a semi-structured interview schedule for collecting the information. We have analyzed our data by employing descriptive statistics and Cronbach’s alpha test. This paper illustrated the role of IS in sourcing, network designing, transportation, inventory management, forecasting, aggregate planning, setting goal, benchmarking the goal, troubleshooting from very beginning of the supplier relationship to the end customer relationship keeping smooth internal information flow throughout the process. We found that, if we apply information systems in all steps and drivers of supply chain of LPG industry then it can develop the integrated supplier relationship, strong internal supply chain management, maintain the customer relationship management and so on. This study we have also given some recommendations to the LPG industry of Bangladesh for applying information systems in the supply chain process.