Information is crucial to the performance of a supply chain because it provides the basis on which supply chain managers takes decisions. Information technology consists of the tools used to gain awareness of information, analyse the information and execute on it to improve the performance of the supply chain. Information is a key supply chain driver because it serves as a glue that allows the other supply chain drivers to work together with the goal of creating an integrated, coordinated supply chain.
IT consists of the hardware, software and people throughout a supply chain that gather, analyse and execute upon information. IT serves as the eyes and ears of management in a supply chain, capturing and analyzing the information necessary to make a good decision.
Information must have the following characteristics, while making decisions in Supply chain.
1) Must be accurate – Without information that gives a true picture of the state of the supply chain, it is very difficult to make good decisions.
2) Accessible in a timely manner – To make good decisions, a manager needs to have up-to-date information that is easily accessible.
3) Must be of right kind – Companies must think about what information should be recorded so that valuable resources are not wasted collecting meaningless data while important data goes unrecorded.