Use of IT in supply chain management Essay Example | Topics and Well Written Essays - 500 words

Use of IT in supply chain management - Essay Example Planning for the overtime labor was also irregular, since the organization did not have an effective information gathering system that would predict the demand and the supply changes effectively. The initial spreadsheet system that was paper-based had proven to be ineffective in supplying such information. The problems that Sunsweet Growers encounter due to these constraints included the fact that its operational costs were high, since the company had to hire overtime labor on irregular basis so as to meet the demand processing needs. Secondly, following the initial use of a paper-based spreadsheet system by the organization as its information source, the organization relied on outdated data since this system could not process information in good time. The use of the paper-based spread sheet system also limited the collaboration between different departments of the organizations, while the time spent to process simple information such as demand or supply forecast would take too much time. The adoption of the S&OP software helped the organization to manage its supply chain better, through making it possible for different departments of the organization to come to the monthly meeting with collaborative information, which made it easier to identify the relevant areas of problem for departments and enhanced efficient projections for the future demand and supply changes. This made it possible for the different departments to cooperate and streamline their goals, so that they reflected the overall organizational objective. The software also helped the organization to produce demand plans routinely, which in turn ensured that the organization was now able to balance its demand forecasts with operational plans. Therefore, the cost of overtime labor was markedly reduced, while the time taken to generate important market forecast and supply projection information also declined. The inventory management of the organization also benefited through the