A critical analysis of the relationship between business information system technology and supply chain management with special reference to optimum efficiency within large enterprises in the food and drug retail sector in KwaZulu-Natal.
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Date
2012
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Abstract
The purpose of this research is to explore the relationship between supply chain
management and business information system technology within the food and drug
retail sector with special reference to optimum efficiency. Business information
system technology leverages information and knowledge sharing throughout the
supply chain which enables them to respond more effectively to an ever-changing
and volatile marketplace. The relationship between supply chain management and
business information system technology is multi-faceted and complex in nature, and
consequently, has the ability to penetrate every element of an organisation’s
functionality. Furthermore, it has the ability to penetrate the functionality of an
entire chain or network of suppliers and markets irrespective of their position
around the globe.
Supply Chain management literature teaches that optimisation within functional
areas is not as effective as cross-optimisation across functions and supply chain
networks. As supply chains rely on business information technology for crossoptimisation,
optimum efficiency will always be a moving target for as long as
business technology and supply chain management continue to break through new
ground.
In this research large food and drug supply chain networks and their business
information system requirements, trends, influence, effect and constraints were
reviewed, with special reference to creating optimum efficiency in their supply chain
networks. This research was motivated by discussions with Pick ‘n Pay’s business
information system’s service provider and their desire to optimise Pick ‘n Pay’s
supply chain network efficiency in a highly price-competitive environment, resulting
in an in-depth case study being carried out on Pick ‘n Pay (Pty) Ltd stores in
KwaZulu-Natal. The review of literature suggests that cross-optimisation is only
mutually beneficial within trust relationships that exhibit seamless flows of
information throughout a supply chain. Data suggests that despite Pick ‘n Pay’s use
of advanced business information system technology, Pick ‘n Pay together with the
food and drug retail stores in South Africa have a long way to go on this issue.
Description
Masters Degree. University of KwaZulu-Natal, Pietermaritzburg.