Supply Chain Management and Information Technology Essay

2218 Words Apr 25th, 2008 9 Pages
Supply Chain Management and Information Technology

This paper will discuss how to achieve the benefits of cost reduction and profits through the utilization of information technology and information systems by examining processes between buyers and sellers, along with the supply chain.
As information systems technology advances, supply chain partners can now work together to optimize performance. A basic enabler for coordination is information sharing, which has been greatly facilitated by the advances in information technology.
In traditional supply chain management, orders are the only information exchanged, but information technology now allows demand and inventory data to be quickly and inexpensively shared. This paper
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A number of major Web sites offer e-procurement marketplaces where end-users can make purchases. Many companies use tools such as this where the end-user can go online and order material with a Purchasing Card.
Additionally, companies may use the web to hold Reverse Auctions. A Reverse Auction is an electronic bidding process with a specified date and time for the bidding to occur. The Reverse auction is held on the Internet through a bidding service website. Bidders must have access to the bidding services web site, standard Internet Service Provider (ISP) connection and a web browser. The Reverse Auction is a “dynamic” event wherein the supplier is able to see the lead (low) bid in the system and the supplier will have to place a bid lower than their previous bid but not necessarily lower than the leading bid. Bidding is done on a per “Lot” basis as explained later. The bidders only see the quotes/bids on the screen and not the names of the competitors.
Prior to the Reverse Auction taking place, a Request For Quote (RFQ) and the “rules” for the bidding event (e.g., starting prices, bid decrements, bidding event length, etc.) are sent to the prospective suppliers giving them ample time to prepare for the auction. There is a detailed training session that will walk the suppliers through all aspects of the event, software and answer any questions that the suppliers may have.

The opening price is set before the auction date and
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