Supply chain information technologies can provide timely, cost-efficient sharing of information
between suppliers, manufacturers, logistics services providers, and customers.
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It has been said that information is the lifeblood of business, driving effective decisions and action.
Quality of information is less and less important, given advances in technology.
T/F - Answers F
Recent data shows that sales of supply chain management and procurement software is on the rise in
the U.S.—a 12.5 percent increase in 2018 alone.
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Before selecting and implementing new software, managers must conduct a needs assessment, which
includes addressing the links between effective business processes, appropriate technology, and
supply chain performance. T/F - Answers T
Companies with highly digitized supply chains and operations can expect efficiency gains of 6.2
percent annually, while boosting revenue by 4.9 percent a year.
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A supply chain information system (SCIS) allows managers to monitor supply chain conditions and
respond quickly with corrective actions to avoid problem escalation.
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Technological capabilities ultimately determine the success or failure of SCIS, rather than the
technology users. T/F - Answers F
Unless the technology components of an SCIS are properly linked, firms will not be able to capitalize
on the benefits of systems integration, real-time data access, or process optimization.
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There are three principle supply chain information requirements that support effective decision-
making. First, the information in a system must meet quality standards to support fact-based decision
making. Second, the information must readily flow within and between organizations. Third, the
information must support multiple types of supply chain decisions.
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Event management systems monitor the supply chain for events that are problems or exceptions,
such as a shortage of parts at a manufacturing location or the breakdown of a truck delivering an
important order.
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The purpose behind digitized SCM networks is to collect data from disparate, siloed sources, cleanse
the data, and aggregate it into a single version of the truth that reflects what is actually happening in
the supply chain.
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Enterprise resource planning (ERP) systems are internal applications that enable firms to monitor
inventory levels.
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Spreadsheets and database software no longer have a place in SCIS as newer tools have supplanted
them. T/F - Answers F
SCIS software selection is relatively straightforward as the choices have been simplified. T/F -
Answers F
A significant challenge in SCIS management is the integration of various applications created by
different vendors, a problem that is exacerbated by the fact that these competing vendors refuse to
address integration issues or to foster better synchronization.
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RFID tags are growing in popularity in retail stores as a means of tracking inventory and point-of-sale
activities.
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Information is useful only if it can drive effective decision making. T/F - Answers T
Thanks to recent advantages in technology, there are many solutions available that will fix flawed
supply chain processes and make effective use of even poor quality data.
T/F - Answers F