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1.Introduction. The Purpose Of This Report Is To Examine

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1. Introduction
The purpose of this report is to examine the impacts of technology principles, practices and information technology solutions into improving the material and information flows that the pharmaceutical supplier, GlaxoSmithKline (GSK) is one of the world’s leading pharmaceutical companies, uses several systems, such as vendor managed inventory, decision support system and e-procurement, in their business operations. The next part of this report introduces the technology implementation barriers when applying these systems and models in the process management. The report closes with giving some solutions to tackle the technology problems and barriers to the effective implementation of supply chain management.

2. Principles, …show more content…

DSS allows managers to compare and share inventory and marketing management, which improves forecast accuracy and reducing ordering size and lead time. As a result, GSK can determine an appropriate safety stock level and weeks forward coverage for each stock keeping unit that achieve desirable customer satisfaction and service (Shang et al. 2008, p. 3). The connection and interaction of input and output database in DSS improve the firm 's ability to make better-informed decisions in the different areas of distribution and production, such as inventory and capacity plans (Jäger et al. 1989, pp. 381-384). Additionally, DSS provides hospital management with information on requisition and consumption analysis that assist the controlling of inventory to decrease lead times and stocks within the system (Ramani 2001, p. 7). Thus, DSS allows pharmaceutical suppliers and hospitals to manage the material resources and make the efficient and effective decisions in inventory management that decrease costs at the best level of safety stock.

2.3 Applying information and communication technology of e-procurement
GSK implements a set of e-procurement instruments and tools to minimise purchase spending and to facilitate negotiations with suppliers. E-procurement save sourcing costs through gathering information and data to identify noncompliance and designing

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