Information Technology, Evolution of IT, Benifits of IT in Supply Chain Managment, Impotance of Timely &

Information within the Supply Chain
This includes information about:
customer demand, inventory levels, production…

Information shared by all members throughout
the supply chain is crucial for performance &
decision-making!

Key demands:
 Accuracy
 Timeliness




The organisation needs to have appropriate information
systems, relative to its strategy & business environment
ITC M10:U6:6.1-1

, Legacy IT systems were developed prior to
1990 and have a functional focus

Legacy systems are used for simple
operations like order entry & processing,
managing inventory, customer & product
databases

Each activity within the organisation has its own
proprietary system and there is little integration
or communication between the systems

ITC M10:U6:6.2-1

,Legacy Systems for Specific Functions
Human Finance & Sales & HQ &
Engineering Logistics Operations
Resources Accounting Marketing Branches




Function Function Function Function Function Function Function
Server & Server & Server & Server & Server & Server & Server &
Database Database Database Database Database Database Database




ITC M10:U6:6.2-2

, Legacy systems are characterised by:

 Scope – narrow, restricted to specific
function

 Independence – little interaction with
other systems

 Little visibility of information
& inflexible




ITC M10:U6:6.2-3