Abstract:
In this era whereby, the rising of Information Communication Technology
(ICT) has changed the phenomenon in supply chain management (SCM). Nowadays,
SCM is depending on ICT since everything in the process in the supply chain have to
use ICT to transport goods or services from the point of origin to the point of
consumption. As a result, the supply chain concept appears when the ICT revolution
helped the process of integration between suppliers and customers.
Supply Chain Management can be defined as the management that organize
the flow of the goods and services including the storage of the material or goods and
work in process of inventory. Furthermore, SCM also can be defined to monitor supply
chain activities such as planning, design, execution and control the goods in the
process with the objective to provide the highest level of customer satisfaction at the
lowest possible cost. SCM includes managing and integrating these movements both
inside and among companies.
The development in the supply chain sector has made a big impact to the world
and society. In addition, in the administrative foundation of supply chain management
has changed the relationship between the supplier and customer, whereby SCM itself
moved towards more collaboration and coordination for the strategy and the formation
of the supply chain. Suppliers who the one has responsibility regarding inventory
control.
The importance of existing supply chain has started when the development of
scientific revolution takes big roles in this world including management itself. In the
era of scientific revolution with great development in technology, supply chain
becomes necessary, whereby SCM processes become a significant component in the
company efficiency and success.
