ACCA SBL Syllabus E. Technology And Data Analytics - IT and the Supply Chain - Notes 6 / 6
Supply Chain problems and how e-business can help
| Problems of Supply Change Management | How e-business can help |
|---|---|
| Keeping manufacture & distribution costs low | Less paperwork by EDI of orders, invoices & delivery notes. Reduced stockholding through shared information |
| Forecasting Demand | Sharing knowledge of demand with suppliers using Efficient Customer Response (ECR) |
| Failure to deliver on time | Supplier becomes responsible via vendor managed inventory |
| Failure to deliver correct product | Less human error - less humans involved! |
| High Inventory Costs | Less inventory due to better understanding of demand |
| Product development speed | Online marketplaces gives more info about suppliers and components |