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2.3 SCM and development of IT In designing how to manage the flow of goods in the supply chain, we al centerings consider the issue of how to process knowledge. education processing is one of the central functions of SCM. Latest developments and innovations in IT leave alone provided opportunities to increase breeding processing capabilities, and therefore, to improve the performance of SCM. IT could stimulate two contributions in the SCM: one is improvement in information sharing among firms, and the other is act problem identification and optimization. First, it is argued that the account statement entry of Electronic Data Interchange (EDI) is an effective way of promoting prompt information sharing among firms so that it coincides with the objective of SCM. EDI is delimit as connecting computers on- business sector, and exchanging information on transactions among firms (Tsuru, 1998). However, a typical EDI need to introduce a Value Added profit (VAN) or a dedicat ed line in social club to share a network. The large amount of capital require to invest in a VAN or a dedicated line has been the main reason why the raise of EDI, particularly logistics EDI, has been genuinely slow.

However, such investment problem whitethorn also be potentially solved by the interruption of meshwork technology. reading sharing among firms can be carried forbidden with Web-EDI, instead of a dedicated EDI line. Despite the fact that the Internet presents some problems on security and standardization, Web-EDI is advantageous because of its low salute of investment compared with social structure of a dedicated line, and the enjoyable open nature of the Internet. From these merits, Web-EDI has provided oppo! rtunities in promoting information sharing among firms (Tsuru, 1998). Furthermore, the use of the Internet feature with ITS present opportunities to improve the urban logistics systemIf you want to get a full essay, order it on our website: OrderEssay.net

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