Assignment on Supply chain management – Mobile applications
Introduction – Supply Chain Management
Supply chain management (SCM) can be defined as the management of a product in its entire life cycle. In other words we can say SCM is a management of information, raw material and money as they move in a process of manufacturing – Starts from supplier(of raw material) then goes to manufacturer(convert raw material into finish goods) then to wholesaler(dealer who sale product further) then to retailer and then finally reaches to consumer as finished goods (Rouse, 2010). The major intention behind the supply chain is to “increase throughput while simultaneously reducing both inventory and operating expense” (Hugos, 2003).
Following are the major processes that are identified as per the global supply chain forum in the case of supply chain management. They are customer relationship management, supplier relationship management, customer service management, demand management, order fulfillment, manufacturing flow management, production development and commercialization and returns management (Lambert, 2008).
Following are the three main commonly used flows of supply chain management:
- Flow of a Product
- Flow of an Information
- Flow of Finances (Rouse, 2010)
Product flow: It means the movement of goods from a supplier to a consumer passing various stages. It also includes goods return if any and post sale services (Rouse, 2010).
Information flow: Information flow means maintaining information of orders received and post that updating the status of delivery (Rouse, 2010)
Financial flow: This flow involves all credit terms, consignment details, payment schedules etc (Rouse, 2010).
Mobile Applications in Supply Chain Management
Nowadays, in current competitive market place managing multiple business partners and communicating ideas and information from one partner to another in continuation is simply not good enough and companies are now already started replacing old supply chains systems with new adaptive and hi-tech supply chain networks in which readily available and accurate information regarding purchase, production, demand & supply, sale and other operational activities are provided to customers by the use of telecommunication platform, mobile applications, onboard computers and also through radio frequency devices with supply chain management (SCM) systems (Siau & Shen, 2002).
Mobile applications from the above mentioned all modern techniques used in supply chain management is much more convenient, highly accurate and also time saving means of capturing data on goods movement and other events and also useful in creating and managing a critical supply chain network. Mobile Applications are also helpful in streamlining business processes and different business functions to ensure speedy, accurate and efficient flow and exchange of information in supply chain management activities (Siau & Shen, 2002).
Below are the key technologies/applications that are commonly used in Supply Chain Management:
- J2ME – Java 2 Micro Edition
- GPRS Application – General Packet Radio Service
- 3G Application – Third Generation
- OTA – Over the Air
- Mobile IP
- Bluetooth Application (Yuan, Xiaokang& Qiong, 2008)
Given mobile applications are always very helpful in the expansion of e-business. They support supply chain management because of their mobility and flexibility. Mobile applications facilitates its users added values which includes – anytime and anywhere access, ability to locate user’s locations wherever it will be and flexibility in managing tasks which again helpful in the massive expansion of business growth (Yuan, Xiaokang& Qiong, 2008).
Importance of mobile applications in Supply Chain Management and in E-Business
Mobile Applications are no longer only a communication tool for making phones calls and texting messages but also play a major role in doing business online. Today’s phone is no longer a boring device with few keys and ultra small sized screen to make calls and send texts but they have evolved into smart applications and other way for conducting business online (Wagner & Sweeney, 2010).
Businesses are now taking advantage of extra privileges available by the widespread growth of these mobile applications to engage with their customers. The mobile Applications if we compare to other resources like mobile web browsers, provides better engagement as well as faster and secure access to customers. Therefore now many small and big businesses prefer to use a mobile application instead of opening the browser and typing the URL to access any information (Wagner & Sweeney, 2010).
When a business wants to go mobile, they have two options with them i.e. Native Mobile Applications and Mobile Web browsers to get information, to interact with their clients and for doing business through mobile with the help of applications. Mobile applications take advantage of the provided native features to offer much more functionality that mobile web cannot offer in comparison to mobile applications (Wagner & Sweeney, 2010).
Faster and Easily Accessible: Mobile Application usually provides access to same internet services that desktop and notebook offers but at much faster speed and at the touch of a button. For example if you want to send an email to a client from your notebook then you need to first boot your notebook or desktop then you have to open your browser and then type the URL address of the mail service provider or open your Email client example Gmail, yahoo etc. It may take you at least 2-3 minutes. But if you will do the same thing through mobile applications available to you, then you just have to touch the icon available on your mobile for your email access and you are in your mailbox in a second (Wagner & Sweeney, 2010).
Mobile Application store large amount of data: Mobile applications are also helpful in storing big files and data within them. From business point of view these are perfect for storing product catalogues along with the product specifications, videos etc. As data is internal to the applications work can also be done offline even without an Internet connection and later it can be synchronized and can be updated (Wagner & Sweeney, 2010)
Mobile Applications provide better engagement: Mobile applications can serve as the best advertising platform as well for businesses. The advertisement through in-application pop up as well as utilizing the actual real estate inside the applications can attract client’s attention and provide better conversion. Businesses can use this channel of advertisement to push new products for better market capture and updates to customers and also to rent out the space to advertise other products as well (Wagner & Sweeney, 2010)
Mobile Applications offers convenience: It also offers convenience of doing business anytime from anywhere, it is now become the preferred medium to do business. This facilitates real time availability of information about product to business executives, stakeholders and to consumers (Wagner & Sweeney, 2010).
A survey by Forrester Research in 2010, indicates that mobile applications for Emergency Response, Sales Force Automation and Customer facing Mobile applications respectively took 24%, 21% and 19% adoption. Applications related to assets, inventory and supply chain management took very low adoption (Rungta, 2012; Hamerman, 2011). Corporate users now highly adopt mobile applications related to official email, messengers and calendar and meetings.
The disadvantages of mobile applications in Supply Chain Management
- Limitation on types and size of file during data transfer.
- Limitation on number of characters and on text while using WAP and SMS.
- Limitation on the use of Graphics offered.
- Limitation on Internet functionality on mobile phones.
- Difficulties and challenges in learning user interface.
- Limited bandwidth will also be an issue.
- It is very expensive to establish wireless broadband infrastructure and mobile applications.
- Memory, Power Processing, Display capabilities and Input methods are all technology constraints.
- Security issues in data transfer during data transfer in some mobiles and wireless networks.
- Because of rapid development of mobile and of wireless technologies investment in hardware and infrastructure is also seen as risk factor (Siau, Nah & Sheng, 2003)
E-Business plays an important role in the execution Supply Chain Management (SCM)
E-Business deals with the buying and selling of information, products and services through the computer network. E-Business refers to conducting business online with the help of electronic devices like – Personal Computers, Phone Lines, Fax Machines etc (Wagner & Sweeny, 2010).
E-business can be performed with the help of the Internet to interact companies with their customers, suppliers and other trading partners. As a business concept E-Business came into existence since it was introduced in the year of 1990 and simultaneously Information Technology (IT) was also developed with a rapid rate. Supply chain management (SCM) is also concerned for integration of activities within one and between other multiple organizations. Information Technology (IT) also plays crucial and important role of key enabler of supply chain integration in Supply Chain Management (SCM). This report shows the role of e-business in the context of the supply chain management and challenges that many firms are facing. As an example it is mainly explains the role of e-procurement and how e-business concepts is been applied to SCM activity, namely procurement and purchasing (Wagner & Sweeney, 2007).
Role of e-Business in SCM
Doing E-Business means that communication between various parties involved can be done at almost zero cost, without doing any compromise on the richness of information (Graham et al., 2004). Importance and Value of information include some important characteristics such as bandwidth, customization, interactivity, connectivity means easily accessible is defined as Reach, and also the number of agents involved in exchanging of information and ideas. It was very difficult, expensive and also time consuming process to reach large numbers of people for buying and selling purposes with rich information before the development of the E-Business and also was not so accurate due to manual information repetition (Evans and Wurster, 1997).
As per Wagner & Sweeney (2010), It is very crucial task to manage flow of information among other two flows in supply chain i.e. flow of money and flow of material in Supply chain management because the flow of materials and flow of money is usually initiated by movements of information, which means by Flow of Information. Hardaker and Graham (2001) pushes this by highlighting that coordination in a supply chain management generally occurs by communication of orders, inventory levels, delivery status and demand feedback from the customers. Therefore, we can say that poor management of flow of information will leads to bullwhip-effect and requires the stock of extra levels of inventory.
Benefits of e-Business Adoption
Many real time and strategic benefits from e-business adoption are realized by organizations throughout every step of the business process by the use of Supply Chain Management (SCM).
Real Time Benefits:
Global trading capabilities
- Exchange of knowledge globally
- Enhance connectivity – Enterprise to Enterprise
- Provided a specific market place (Wagner & Sweeny, 2010)
Strategic Benefits:
- It supports it exchange of information through trading communities such as – suppliers, customers, distributors and manufacturers.
- It acts as an interface with any third party software
- It is independent platform
- Fully integrated system
- Rapid deployment and Scalability is allowed (Wagner & Sweeny, 2010)
This report explains and critically examined developments of e-business that is having an impact on SCM through supply network integration strategies. Report is been initiated with a introduction of supply chain management (SCM) and definition is also been given for proper understanding of the SCM concept as it is an important component in determining e-business applications and further systems. SCM is now recognized as a weapon by the companies, with the help of which various business operations can be streamlined and also overall competitiveness can be enhanced. Majorly in all the companies’ large proportion of the total cost base is invested in the supply chain systems. It is calculated that 70 percent of a firm’s revenue from sales are mainly spent on SCM related activities. This report also represents the extent to which all activities within an organization and activities of other supply chain members (Suppliers, manufacturers, wholesaler, retailer and customers) are linked and involved. The report also explores the role of e-procurement on how E-business concepts have been applied to one key SCM activity, namely purchasing and procurement. Also the importance and role of E-business is described so that how E-Business supports SCM is summarized along with the various benefits by the adoption of E-Supply Chain Management (Wagner & Sweeny, 2010).
It is noted that now when the organizations are started adapting E-business initiatives. It is advisable to consider a sensible involvement of technology in their business strategy in order to become successful in the competitive market place. E-business is very helpful in driving and evolving new organization forms comes into existence such as virtual organizations and fulfills certain tasks in the inter-firm context and allows organizations to improve supply chain processes. Therefore, we can say that e-businesses have a vital role to play in integrated Supply Chain Management.
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