Impact of Information Technology on the
Supply Function of an Organization
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Impact of Information Technology on the
Supply Function of an Organization
CHAPTER ONE:
Introduction
1.1
Background
of the Study
It has been part of our history that goods produced are not
usually consumed by those that produced them or where they are produced. They
need to be moved and moved to the location they are needed. These goods passed
through a long chain and are usually handled by many people, with each
contributing to adding value to the product, from point of extraction to the
transformation, and eventually consumption. This extraction – transformation –
consumption stage is what is referred to as supply function.
History has also told us that at a point those activities
were undertaken crudely and primitively. No easy access to information. In the
organization, sometimes information are passed wrongly between buyer and the
supplier on what is to be supplied, where it should be supplied and the time to
supply it. But as time goes on man develop methods, technique and technology
that allow man make this activity easier and more efficient, which is
information technology.
Information technology is considered as a pre-requisite for
effective control of today’s complex function, indeed a recent study conducted
by Forrester Research indicate that US manufacturers are increasingly dependent
on benefits brought by information technology to improve supply function
agility, reduce cycle time, achieve higher efficiency and deliver products to
customer in a timely manner. The implementation of information technology in
supply function has also enable firm organization to develop and accumulate knowledge
about stores, about its customers, supplier and market demands, which in turn
influence performance.
1.2
Statement
of the Problem
Before the introduction of information technology to supply function,
the keeping of records (information) manually often resulted in keeping copies
of the same document in different places. information is not easily accessible
relating to supply function and sometimes information don’t get to the buyer
and supplier on time on what is to be supplied and this will tied down activities
and it will also affect the organization.
Keeping of stock record is manually done which is time
consuming, not cost effective, even the calculation of stock level is very,
very difficult and at times it causes delay in the delivery of materials. Not only
that before the advent of the use of information technology in supply function stock
checking and stock taking becomes very difficult which at times lead to
discovery of huge number of items. Either going bad or becoming obsolete. Even
the location of material and identification becomes very difficult because
identifying and location of materials could be time consuming and this could
lead to bottleneck.
It is with this in mind that researchers will attempt to see
how the application of information technology can impact on supply function of
Peugeot Automobile of Nigeria (PAN).
1.3
Objectives
of the Study
i.
To identify the impact of
information technology on supply function
ii.
To identify the condition under
which enterprise resource planning (ERP) can be a critical enabler or severe
handicap for superior chain performance.
iii.
To identify the basic concept
involving in the analysis, design and operation of information system in
relation to supply function
iv.
To identify the innovative
approaches that had been recently developed in relation to supply function.
v.
To determine whether the process is
reliable enough in ensuring efficiency and effectiveness in increasing organizational
performance.
1.4
Significance
of the Study
The significance of this study is to know the impact of
information technology in an organization by creating and developing sound
management information system to meet organizational goals and objectives.
The effective use of information technology offers manager
several significant advantages because it is the ability to process large
volume of data rapidly. Computer can do much routine clerical works; thus,
freeing departmental personnel from many mistakes and repetitive tasks.
Information technology offers supply functions executives
immediate availability of more complete data and information for use when
making purchasing and related materials decisions, because of its fantastic
speed. It can also supply management with virtually instant report which might
otherwise take an army of clerks month to prepare or update, this will enable
the supplier to manage by exemption and do more effective and economical good
job and managing the flow of materials throughout operation.
Another significance is to look into information technology
method of supply function of Peugeot Automobile Nigeria Kaduna with the view of
making students for automated system for obvious reasons.
The researcher provides valuable suggestion and advice on
problem facing the store departments. This will help the organization to adopt
a recommended stock control technique to improve service and profit level of
the organization.
Further more the project is requirement in partial
fulfillment for the award of a Higher National Diploma in Purchasing and Supply
of Kaduna Polytechnic. The project work will help other students that will research
on the topic.
1.5
Scope
of the Study
The scope of this study covers the idea behind information.
Peugeot Automobile Nigeria was chosen as a case study.
This study is conducted in Peugeot Automobile company
The main focus of the study is the impact that information
technology has on supply function of Peugeot Automobile of
1.6
Research
Question
i.
What impact does information
technology has on supply in your organization?
ii.
Under what conditions can
enterprise resource planning (ERP) enhance performance of supply function in
the organization?
iii.
What are the basic concepts that are involved
in the analyzing information system in relation to supply function in the
organization?
iv.
What are the innovation approaches
that are currently adopted to develop in relation to supply function in the
organization?
v.
Is the process reliable enough to
ensure efficiency and effectiveness in increasing organizational performance?
1.7 Definition
of Terms
Information:
information is any thing that adds to our knowledge either consciously or
unconsciously positively or negatively.
Information technology: Any
computer-based tool that people use to work with information and support the
information and information – processing needs of an organization
System:
A system is a whole with parts working together to achieve a goal.
Management:
this is the planning and control of the use of a of resource to achieve more
objectives
Management information system (MIS);
is the function that plans for, develops, implement and maintains IT hardware,
software and applications that people use to support the goals of an
organization.
Procurement; is a managerial process, aimed at ensuring
continuous flow of materials, projects and services into and within the
organisation in order to meet with its goals and objectives, profitably and
efficiently in an ever-changing business environment.
e-Procurement: A simple and fast means
of business transaction that requires telephone lines and other communication
equipments.
Supply: Flow of materials within the firm, i.e. the stores function
covering such issues as consumption of raw materials, office items and other
MRO items
Supply chain management
(SCM); is the process of planning implementing, and controlling the
operation of the supply chain with the purpose to satisfy customer requirements
is efficiently as possible.
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