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THE IMPACT
OF INFORMATION TECHNOLOGY ON THE SUPPLY FUNCTION OF AN ORGANIZATION
CHAPTER ONE:
Introduction
1.7Background
of the Study
It has been
part of our history that goods produced are not usually consumed by those that
produced them or where they are produced. They need to be moved and moved to
the location they are needed. These goods passed through a long chain and are
usually handled by many people, with each contributing to adding value to the
product, from point of extraction to the transformation, and eventually
consumption. This extraction – transformation – consumption stage is what is referred
to as supply function.
History has
also told us that at a point those activities were undertaken crudely and
primitively. No easy access to information. In the organization, sometimes
information are passed wrongly between buyer and the supplier on what is to be
supplied, where it should be supplied and the time to supply it. But as time
goes on man develop methods, technique and technology that allow man make this
activity easier and more efficient, which is information technology.
Information
technology is considered as a pre-requisite for effective control of today’s
complex function, indeed a recent study conducted by Forrester Research
indicate that US manufacturers are increasingly dependent on benefits brought
by information technology to improve supply function agility, reduce cycle
time, achieve higher efficiency and deliver products to customer in a timely
manner. The implementation of information technology in supply function has
also enable firm organization to develop and accumulate knowledge about stores,
about its customers, supplier and market demands, which in turn influence
performance.
1.8Statement
of the Problem
Before the
introduction of information technology to supply function, the keeping of
records (information) manually often resulted in keeping copies of the same
document in different places. information is not easily accessible relating to
supply function and sometimes information don’t get to the buyer and supplier
on time on what is to be supplied and this will tied down activities and it
will also affect the organization.
Keeping of
stock record is manually done which is time consuming, not cost effective, even
the calculation of stock level is very, very difficult and at times it causes
delay in the delivery of materials. Not only that before the advent of the use
of information technology in supply function stock checking and stock taking
becomes very difficult which at times lead to discovery of huge number of
items. Either going bad or becoming obsolete. Even the location of material and
identification becomes very difficult because identifying and location of
materials could be time consuming and this could lead to bottleneck.
It is with
this in mind that researchers will attempt to see how the application of
information technology can impact on supply function of Peugeot Automobile of
Nigeria (PAN).
1.9Objectives
of the Study
i. To identify the impact of
information technology on supply function
ii. To identify the condition
under which enterprise resource planning (ERP) can be a critical enabler or
severe handicap for superior chain performance.
iii. To identify the basic concept
involving in the analysis, design and operation of information system in
relation to supply function
iv. To identify the innovative
approaches that had been recently developed in relation to supply function.
v. To determine whether the
process is reliable enough in ensuring efficiency and effectiveness in
increasing organizational performance.
1.10Significance
of the Study
The
significance of this study is to know the impact of information technology in
an organization by creating and developing sound management information system
to meet organizational goals and objectives.
The
effective use of information technology offers manager several significant
advantages because it is the ability to process large volume of data rapidly.
Computer can do much routine clerical works; thus, freeing departmental
personnel from many mistakes and repetitive tasks.
Information
technology offers supply functions executives immediate availability of more
complete data and information for use when making purchasing and related materials
decisions, because of its fantastic speed. It can also supply management with
virtually instant report which might otherwise take an army of clerks month to
prepare or update, this will enable the supplier to manage by exemption and do
more effective and economical good job and managing the flow of materials
throughout operation.
Another
significance is to look into information technology method of supply function
of Peugeot Automobile Nigeria Kaduna with the view of making students for
automated system for obvious reasons.
The
researcher provides valuable suggestion and advice on problem facing the store
departments. This will help the organization to adopt a recommended stock
control technique to improve service and profit level of the organization.
Further more
the project is requirement in partial fulfillment for the award of a Higher
National Diploma in Purchasing and Supply of Kaduna Polytechnic. The project
work will help other students that will research on the topic.
1.11Scope of
the Study
The scope of
this study covers the idea behind information. Peugeot Automobile Nigeria was
chosen as a case study.
This study
is conducted in Peugeot Automobile company Nigeria , located at Kakuri, Kaduna
South local government.
The main
focus of the study is the impact that information technology has on supply
function of Peugeot Automobile of Nigeria. The information obtained will be
used for purchasing department, stores and production department because the
use of information technology will have a lot of impact on supply function of
Peugeot Automobile Nigeria (PAN)
1.12Research
Question
i. What impact does information
technology has on supply in your organization?
ii. Under what conditions can enterprise
resource planning (ERP) enhance performance of supply function in the
organization?
iii. What are the basic concepts
that are involved in the analyzing information system in relation to supply
function in the organization?
iv. What are the innovation
approaches that are currently adopted to develop in relation to supply function
in the organization?
v. Is the process reliable enough
to ensure efficiency and effectiveness in increasing organizational
performance?
1.7 Definition of Terms
Information:
information is any thing that adds to our knowledge either consciously or
unconsciously positively or negatively.
Information
technology: Any computer-based tool that people use to work with information
and support the information and information – processing needs of an
organization
System: A
system is a whole with parts working together to achieve a goal.
Management:
this is the planning and control of the use of a of resource to achieve more
objectives
Management
information system (MIS); is the function that plans for, develops, implement
and maintains IT hardware, software and applications that people use to support
the goals of an organization.
Procurement;
is a managerial process, aimed at ensuring continuous flow of materials,
projects and services into and within the organisation in order to meet with
its goals and objectives, profitably and efficiently in an ever-changing
business environment.
e-Procurement:
A simple and fast means of business transaction that requires telephone lines
and other communication equipments.
Supply: Flow
of materials within the firm, i.e. the stores function covering such issues as
consumption of raw materials, office items and other MRO items
Supply chain
management (SCM); is the process of planning implementing, and controlling the
operation of the supply chain with the purpose to satisfy customer requirements
is efficiently as possible.
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