Communication Systems and the Evolution of the Supply Chain

Communication Systems and the Evolution of the Supply Chain

DOI: 10.4018/978-1-6684-7455-6.ch001
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Abstract

Under the pressure of the extremely complex and turbulent economic environment, mainly due to globalization and the strategies implemented by companies, logistics, like all the vital functions of the company, have undergone a real transformation redefining their role, mission, and field of action within the framework of an effort to adapt and restrict strategic dimensions. This chapter focuses on the evolution of the traditional supply chain to the notion of SCM. This evolution has taken place due to the emergence and use of information systems and IT. All this contributes to the achievement of overall organizational performance through the achievement of efficiency and effectiveness objectives. This technological advance certainly contributes to improving the links between the various partners in the chain through the sharing and exchange of information. This chapter highlights the prominent role of technological advances in making information reliable and accessible by all partners in the chain and also in achieving the organizational performance of all partners.
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Introduction

Under the pressure of the extremely complex and turbulent economic environment, mainly due to globalization and the strategies implemented by companies (relocation, innovation, cost, differentiation, etc.), logistics, like all the vital functions of the company have undergone a real transformation redefining its role, its mission and its field of action within the framework of an effort to adapt and restrict strategic dimensions (Jawab and Bouami, 2004). With technological development, the traditional definition of the supply chain restricted it to a simple technique of operational optimization, generally linked to transport, has evolved to a new concept called “Supply Chain Management” (SCM).

Today, in order to optimise the vertical and horizontal links between the partners, the company is obliged to use outside expertise to build or reinforce the offer for the end customer. Indeed, the use of cooperation and coordination between several partners often seems to be a sine qua none condition for optimizing the company's value creation process. It is here that logistics skills present a source of differentiation and competitive advantage for the company (Brulhart, 2002).

It is in this same line that the eminent role of information systems is presented, where UCCnet1 statistics show that 30% of data exchanged between suppliers and retailers do not correspond to their expectations. This is mainly due to the inefficiency2 or even the lack of communication systems. This presents a huge problem for the industry, where the lack of data greatly influences the quantitative understanding between retailers/suppliers, especially in terms of the actual quantities placed either on shelves or in warehouses. This is where we needed to say that poor data translates directly into huge costs, missed revenues, and quite often, dissatisfaction with the end user or consumer (Ben Slimene and Lakhal, 2020).

Thus, it seems interesting to adopt tools that can cover both the intra- and inter- organizational aspect of the company. It was the “Supply Chain Communication System: SCCS” which has made it possible to restructure the relationship between suppliers and retailers. The SCCS supply chain communication system is a strategic tool for enhancing cooperation between them3 (Kim and al. 2006).

It is at this level that it is interesting for any organization to integrate information systems (IS) to be more competitive and competitor. In this context, Silveira and Cagliano (2006) stipulate that the so-called Unilateral Inter-Organizational Systems have emerged to be more associated with the priorities of the so-called stable supply chain (in terms of cost, delivery and quality)., while the Multilaterals have emerged to be more associated with the priorities of the so-called dynamic chain (in terms of flexibility and quality).

In the context of this research, we are interested in the supply chain of a company that forms all the steps directly or indirectly involved in fulfilling the client's request (Jawab and Bouami, 2004). It includes not only manufacturers and suppliers but also carriers, warehouses, retailers and consumers. And it is thanks to the IS that the integration of the Supply Chain will be possible. This is an asset for consumers who will be directly linked to suppliers, who in turn will be able to react in real time to market changes. That’s how they can match supply to demand (Ben SLimene and Lakhal, 2020).

Throughout the flows of products/services generate a great growth of information that can beused in the decision-making of the “Supply Chain Management”. The latter is seen as an important mechanism that simplifies business processes and increases productivity (Ben SLimene and Lakhal, 2020).

Key Terms in this Chapter

Information Systems and Information Technologies: The field of information systems works as the bridge between technology and people, whereas information technology focuses on helping them utilize and make sense of that system. The two disciplines are related, but have distinct sets of learnings and career paths.

Organizational Performance: Organizational performance is the ability of an organization to reach its goals and optimize results. In today's workforce, organizational performance can be defined as a company's ability to achieve goals in a state of constant change.

Supply Chain and Supply Chain Management: A supply chain is one of the core activities of the organization that is associated with the delivery of goods and services to customers. Supply chain management is defined as the management of flow of goods as well services and includes processes involved in transforming raw materials to final products.

Supply Chain Partners: A supply chain partner is also a company that will provide you with the product or service you'll need. The difference is that a supply chain partner has a full-service solution for sourcing, quality control, and logistics and consists of a network of multiple suppliers.

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