The Holistic Perception of Information Technology and The Importance on the Supply Chain Management

Supply Chain Management (SCM) includes management of materials, products, services, information and financial flows which network of consisting suppliers, manufacturers, logistics service companies, and clients. The individual elements of this chain with coordination and integration of each element to perform themselves ensure successful of SCM. Information technology has a very important role in activities for coordination and integration of supply chain. Acceleration of sharing information, simplification and increasing of reliability provide effective use of time in logistics companies, cost savings like effective management ways. In this prepared study which taking into account the positive impact on supply chain of information technologies, it was investigated on the effectiveness of sharing information of supply chain by examining infrastructure of the information technology, ranging from the production of raw materials to the end user in SCM. The results of the analyses by using the structural equation model indicate that the use of information technology in supply chain management enhances the relationship between buyer-supplier; the enhancement of such relationship improves the quality, safety, and flexibility of products and reduces the cost of products; as a result, it increases firm performance.