EXECUTIVE SUMMARY
Many firms are attempting number of ways to enhance their responsiveness and competitiveness by changing their methods and strategy which includes execution of Information Technology (IT) and Supply chain management (SCM). On the other hand, a critical literature review is to be carried out with the insight into the role of Information Technology (IT) and Supply chain management (SCM).
This report provides the applications of Information Technology (IT) and E-commerce in general as well as in selected industry.
For this report, the selected industry is Volvo. The applications of information technology and changes in supply chain using e-logistics are discussed elaborately in this report. This report also clearly draws about the supply chain strategy used in Volvo. In addition, use of electronic commerce is well discussed followed by the uncertainties faced by the Volvo and the overcoming of uncertainty by Volvo. This report ends up with the conclusion.

TABLE OF CONTENTS

INTRODUCTION 3
APPLICATIONS OF INFORMATION TECHNOLOGY 3
APPLICATIONS OF ELECTRONIC COMMERCE 4
BENEFITS OF INFORMATION TECHNOLOGY IN SUPPLY CHAIN 5
LITREATURE REVIEW ON INFORMATION TECHNOLOGY 6
CHANGES IN SUPPLY CHAIN USING E-LOGISTICS 7
ABOUT VOLVO 8
SUPPLY CHAIN STRATEGY OF VOLVO 9
APPLICATION OF INFORMATION TECHNOLOGY IN VOLVO 11
APPLICATION OF E-COMMERCE IN VOLVO 13
UTILIZATION OF INFORMATION TECHNOLOGY TOOLS 14
VOLVO UNCERTAINTY 14
OVERCOMING UNCERTAINTY 14
FUTURE AREAS FOR RESEARCH 15
CONCLUSION 16
REFERENCE 17

INTRODUCTION
Over the recent years, the concept of supply chain has become much popular. Supply chains have developed with the Information and Communication technologies (ICT) this includes, World Wide Web (WWW) and Electronic data interchange (EDI). However, it is not at all possible to attain effective supply chain without Information Technology (IT). Since every supplier is located over the world, there is a need to combine the activities both outside and inside of an organisation. So, this requires integrated Information System (IS) for sharing the information along the supply chain. Information Technology is said to be the nerve system for Supply chain management. Through co-operation and information sharing supply chain benefits for long term of all the parties. To achieve IT enabled SCM, the firms need to invest more on redesigning technical process and internal organisation. By Ritter, Ryssel and Gemunden in 2004, defines Information Technology as,
“IT is a term that encompasses all forms of technology utilized to create, communicates, exchange, present, manipulate and use information in a variety of forms.”
The main objective here is to identify the uses of IT and EC in the selected industry. Some areas for future research are indicated as well.

APPLICATIONS OF INFORMATION TECHNOLOGY
In today’s world, most of the supply chain organisation depends on Information Technology (IT) for the effective control of supply chain. In fact, a recent study carried out by Forrester Research states that, majority of U.S manufactures rely on IT to improve their supply chain agility, to deliver products to customer at a right time, to reduce cycle time, and to attain higher efficiency.
In all due fairness, the implementation of Information Technology (IT) in supply chain will permit an organisation to develop and build up knowledge about its customer, market demands and suppliers. Information technology in supply chain will also helps in bringing buyer and supplier relationship closer. Indeed, it also reduces uncertainty.
INFORMATION TECHNOLOGY ON PURCHASING
Over the decades, IT on purchasing has been developed quickly. IT has employed in range of procurement application which includes, purchasing from vendors and communication with vendors. Since the evolution of IT in supply chain, confronting negotiations are not used often. For example, bargaining, term agreements and renegotiation. The processing of returned and damaged goods are handled by IT itself. Besides all these, order processing applications is well-liked in use of Information technology. Order processing application includes placing order and order status. Almost all the organisation employs IT in supply chain only for these purposes. Order processing errors can be figured out easily and can also be corrected instantly. In fact, use of Information Technology in order processing reduces the inaccuracy level remarkably.
INFORMATION TECHNOLOGY ON OPERATION
Needless to say, managing inventory is costly in the supply chain. All the research shows that, use of IT in this region is notification of stock outs by the companies to their respective customers or communication of stock outs by customers to vendors. IT on operation decreases the delivery time and in fact, inventory. In operation, production schedule is one of the most difficult regions in supply chain management. IT allows organisation to reduce the uncertainty in production scheduling by improving the communication between customer and the company.
INFORMATION TECHNOLOGY ON LOGISTICS
The major use of IT in supply chain management is in the management of transport. Managing transport in supply chain is far away the ground. In fact, the highest cost component in supply chain. Recent research states that, major application of IT is in examining of pickups by the carriers. Due to this, transport manager can ensure that the carrier they use is promising their delivery time. Certainly, with the usage of IT managers will be able to send the information like delay of ship etc, to the carrier immediately. Settlement and processing can be handled more easily with the use of IT tracking system.

APPLICATION OF ELECTRONIC COMMERCE
Over the recent years, e-commerce and internet are changing the nature of supply chain. E-commerce also redefines how customers learn about purchasing and how to use the product and services.
COST EFFICIENCY
E-commerce permits all the transport companies to swap cargo documents over internet itself. Truly by using e-commerce, firms can increase their accuracy of data, reduce cost and streamline business process. Trade partners can exchange bill of lading, invoices and status of container with increased accuracy and also with better efficiency. A browser and computer are the tools needed to take benefit of this solution.
ORIENTATION OF CUSTOMERS
E-commerce plays a vital role in supporting logistics services both internal and external customers. Moreover, it will help the firms to give better services to customers. In e-commerce, use of internet will permit customers to place deliver orders and to get the knowledge about the rate of the particular product. Use of e-commerce makes the business easier. The functions of e-commerce will takes a company a step forward by offering customers with an easier way to do business.
FREIGHT AUDITING
Freight auditing makes sure the accuracy of freight bill. As a result of this, risk of over payment, paper work is eliminated. In fact, there is no need of third party auditing organisation.
SHIPPING AND DOCUMENTATION
With e-commerce, paper work is totally eliminated and thus shipping department will be high efficient. And in fact, only less manual intervention is needed because it automatically produces bill of lading, and carrier manifest.
TRACKING SHIPMENTS
With e-commerce, users can obtain real time information about ships. It may also submit bill of lading, analyse charges and many more functions. Besides these, e-commerce also allows users to track the movement of cargo. To secure business transactions this application uses encryption technology.
CHANGES IN DISTRIBUTION SYSTEM
E-commerce is more flexible in managing the complex movement of product and information between businesses. Moreover, it also closes the linkage between distribution centre and customers. It allows the customers to manage movement of product through supply chain.

BENEFITS OF INFORMATION TECHNOLOGY IN SUPPLY CHAIN
The control of material flow and information flow are involved in the supply chain management. Both material and information flow flows among the manufactures, customers and suppliers through the process of communication and information sharing. Applications of IT will automate regular activities like distribution process to create value all along the supply chain. Information technology improves the efficiency of supply chain management. In addition to this, it is also possible to streamline the flow of logistics and to reduce inventory cost.
Information technology develops an effective supply chain if it has to compete in a marketplace where quality and speed of delivery is much important.
SUPPLY CHAIN MANAGEMENT
If a company manufactures a product and those products are to be sold, then the company must have supply chain. Some supply chains are simple, and others are complicated. The complexity in supply chain varies according to the size of business.
ELEMENTS IN SUPPLY CHAIN
PLANNING
Planning department creates a planning order to manufacture the product to fulfil the customer needs. The company have to purchase raw material needed to manufacture the product.
PURCHASING
Purchasing department receives the raw materials list from the production department. Then, it sends purchasing order to the suppliers to deliver the required raw material.
INVENTORY
Once the raw materials are delivered, it is inspected thoroughly for the quality and then pushed to the ware house. The raw materials are stored in warehouse until they are needed from the production department.
PRODUCTION
In the production plan, the raw materials are moved to the manufacturing area. After finishing the product, they again stored in the warehouse prior to delivery.
TRANSPORTATION
From the warehouse, shipping department finds the most efficient way to ship those products so that they can be able to deliver it to the customers at the right time. After the goods are delivered, company will then send an invoice for delivered products.

LITREATURE REVIEW ON INFORMATION TECHNOLOGY
E commerce and e business are the common terms of business models used by IT. E-business refers to the use of internet (Johnson and Whang, 2002, Cross, 2000). In more literature, for instance Dawson (2002), Levary (2000) and Meindl and Chopra (2001) gave a comphrensive discussion on the role of IT (Information Technology). Simchi-Levi et al., (2003, p.266) stated the objectives of Information Technology. They are, * Providing information visibility and availability. * Enabling collaboration with supply chain partners. * Enabling single point of collection of data. * Allowing decision based on supply chain information.
Elaborating the role of IT in Supply chain management, the following can be classified (Refer Figure 1).
The role of information technology in supply chain management is to reduce the friction in transactions between the supply chain partners (Cross, 2000). More importantly, Information Technology is viewed to have a major role in coordination and collaboration of supply chain via information sharing. Information Technology can also be used for decision support.

Functional roles of IT in SCM |

Transaction execution | | Collaboration and coordination | | Decision support |

FIGURE 1

CHANGES IN SUPPLY CHAIN USING E LOGISTICS
E-LOGISTICS
It can be defined in number of ways because of its immense process and interactions. Simply, E-logistics is the process necessary to move goods which is sold in internet to the end customers. E-logistics eliminates intermediaries such as retailers and wholesalers and emerges new players like logisticians. The role of logisticians is to adapt traditional chain of logistics and also to take the requirement of e-business into account. The impact of internet over supply chain is, controls the effective flow of goods and controls efficient storage of goods. E-logistics is a subset of e-supply chain management.
E-LOGISTICS PROCESS
With the increase in importance of globalization and the resulting in faster, greater and flexible communications, a good framework is required to permit any firm to set up themselves in no time.
E-logistics process framework is based on web services called ELPIF, which are adaption layer, common alliance layer and dynamic data binding mechanism. Moreover, this framework can also be adapted as a model for new service delivery, where it uses solution templates and design pattern.
WORKING OF E-LOGISTICS
Over the recent years, more number of online tools have developed for e-commerce. ELPIF is much helpful for the business to react quickly and in fact more efficiently. Also, it provides a method for automating process integration which reduces cost and integration time, increases the efficiency of delivery service and to gain competitive advantage in the market. XML plays a major role in trivializing the swap over of business data to firms. It provides cross platform approach in the areas like data formatting and data encoding. For instance, SOAP which is built on XML, defines simple way to pack information for information exchange globally. On the other hand, UDDU registries allow programmable elements placed on web sites where other users can be able to access.
CHANGES
Globally, many countries have observed the possibilities to use e-business in logistics sector. A new term of logistics was set up in this way, characterizing process in logistics are carried out using information technology solution. E logistics changes the process in logistics related to physical traffic of services and goods. Transformations became visible in the process of order cycle time and configuration of distribution and warehouse centres.
The solutions based on flexible chain of electronic provider and high speed was created with a quick spread of e-business in logistics. E-logistics is mostly seen in supply chain by describing information resources, financial resources and goods traffic.

ABOUT VOLVO
Volvo was founded in 1927. They are one of the leading manufactures in heavy vehicles and diesel engines. They also offer a range of customised solutions in transport system, financing and as well as leasing.
Volvo’s business areas are, * Volvo trucks * Volvo financial services * Volvo construction equipment * Volvo buses.
Volvo Car Corporation is a leading luxury car manufacture. Between 2000 and 2010, it was owned by Ford motors; again in 2010 it was acquired by Zhejiang Geely holdings Group of China. Volvo cars are a small producer. As of 2011, its market shares are 1 to 2 percent in its main share. It was integrated with Ford for about a decade, involved in shared work progress and joint organisation. After its separation from Ford, it operates as an independent company now.
At present, it has almost 73000 employees and its production in 25 countries. Volvo operates more than 186 markets.

SUPPLY CHAIN STRATEGY OF VOLVO
Volvo uses a Build-to-order supply chain strategy, which is new. Virtual Order Bank (VOB) gets the order from the dealers or suppliers. VOB includes, * Order booking * Order status information * Feasibility check
In this supply chain, the dealers and customers are the external actors produce the order load within the system. The FAP’s (Final Assembly Plants), BTS (Build to stock suppliers), EASP’s (External Assembly Service Providers) are in the production network, and for these actors, dealers and customers, the requirements were identified by, * Car configuration * Order tracking * Order configuration
The sequencing is said to be the result of interaction between the Virtual Order Bank (VOB) and actors in production network.

Customer
Dealer

Order tracking
Car Configuration
Order confirmation

Communicate Communicate Communicate Feasibility check
Order booking
Order status information |

Sequencing

Communicate

BTS
SUPPLIER
BTO
SUPPLIER
EASP

FAP

FIG 2 MODEL OF BUILD-TO-ORDER SUPPLY CHAIN from Mandel and Ost (2008, pg.no 249)

APPLICATION OF INFORMATION TECHNOLOGY IN VOLVO
XDMS IMPLEMENTATION
Volvo has standardised its dealership in Luxembourg and Belgium on one SOA and enabled a Dealer Management System (DMS). The system, XDMS from X power, allows all Volvo’s regional dealer to share information automatically with Volvo’s headquarters, also integrated with Volvo’s corporate system, Sweden. This makes easier for Volvo to deal with any kind of problems with its car. Furthermore, it makes for the dealers to track servicing for the cars and also it makes easy for the dealers to order cars for the customer. It also enables Volvo accommodates the latest trend in the industry namely, scheduling its maintenance, and dialling into the network.
This technology helps all the Volvo dealers in Belgium and Luxembourg to provide premium services to their customer’s expectation. And also, almost 97% of all Volvo parts ordered are delivered in overnight. This guarantees that, Volvo customers need not to wait for long span to get the product. Because of this technology, responding time to customer is shortened.
For instance, if a customer orders a car deciding on an extra towing hook, a single transaction will update order parts and purchase price immediately. And most probably, it will be available on the next day. The system also updates the dealer accounting records.
The benefit of this system is, enables the dealer to track the vehicle throughout its lifecycle. This new system gives huge benefits to Volvo. Also, it increases its ability to recommend an enhanced service experience, purchase and support for its customers.
In this case of Volvo, dealers have concentrated on to the sale and maintenance of their cars. The XDMS handles all the dealership aspects, in fact, using car’s VIN number to track entire life cycle of car. XDMS follows the car’s entire maintenance history, permitting mechanics to track their name and as well as what parts were used, handling back office functions, ordering of the parts and reporting to dealer. The monthly report that has to be sent to Volvo is done through XDMS. For this automotive industry, CRM/ERP is designed uniquely for this sector. TECHNOLOGY IMPORTANCE
The X power dealer management is based on the progress called “OpenEdge” and it uses sonic ESB to connect the Dealer Management System (DMS) to its Vehicle Information and diagnostics for after sale system and its Volvo’s corporate car configuration system. The tight grip of OpenEdge with sonic ESB creates the company a leading infrastructure for its distributed business system. Sonic ESB is the only efficient way of combining applications and to manage service which is issued all over firm.
VOLVO DYNAFLEET SYSTEM
Volvo dynafleet system improves efficiency and security for truck operators. Dynafleet system is a transport information system, which allows the user to view the truck location, driver times, fuel consumption of vehicle and vehicle emissions. This system is designed around “cornerstone”. * Fuel and environment * Driver times * Positioning * Messaging.
FUEL AND ENVIRONMENT
Dynafleet system permits the user to view detailed information on fuel consumption through its fuel management features. Additionally, it also allows the user to view driven distance, emission level and fuel consumption. Despite this, it is possible to compare how different drivers handle the vehicles. Because of this, it allows the operator to compare and rate their employees. With the use of dynafleet, the reports are easy to read provided by the driver and it also makes easier to manage driver training. Dynafleet system allows the transport office it there was any change in dramatic fuel level. Also, it rates the over-all performance on the journey, which helps the driver to develop fuel-efficient driving style.
DRIVER TIMES
Dynafleet system on driver times supports the transport planning to manage more easily. It is just the overview if how the drivers spend their working day. A tachograph downloads the information instantly from truck to office and keeps the drivers and operations in the loop as situation changes. Dynafleet also registers the activities of drivers while he is on job. So, the operators can see the time spent in resting, waiting and driving. It is also designed in such a way that it alerts when the driver exceeds the maximum working limit. Moreover, it also provides a basis for calculating wages for drivers.
POSITIONING
This feature makes it easier to plan the transport assignments. In any situation, maps are available to give full control. Dynafleet shows the exact location of truck down to street level and also gives information about speed, load, time and type of vehicle. Additionally, it simplifies the route planning and finds the fastest route to destinations. Dynafleet can also be integrated with Garmin navigation system, so that the operators can send the exact delivery address with accurate coordinates to the driver by clicking on the map. This system also enables the customer to monitor the truck or cargos by themselves.
MESSAGING
The working of dynafleet’s message service is same as like as an email. The messages can be sent rapidly between truck and office. This system is designed to improve the speed and quality of communication to make the operations more efficient.

RADIO FREQUENCY IDENTIFICATION
Volvo truck manufacturer is using Radio Frequency Identification (RFID) to track its equipments in warehouses. Volvo has already been worked with Nokia to test RFID to track automotive parts through its supply chain. It uses this technology to track IT assets.
According to European accounts manager Andy Alder of Volvo’s IT group states that, RFID is big for Volvo in terms of all the equipments around. It has reduced client’s technology investment and administration cost of IT by using the software called Centennial’s network discovery. It map and locate all hardware and software on computer’s network. Within three days, Volvo managed to carry out full hardware and software audit of around 600devices. IT in Volvo also uses Centennial’s auditing technology to track software license which are owned by the customers, Nationwide Accident Repair Services.

APPLICATION OF ECOMMERCE IN VOLVO
Volvo’s ecommerce utilizes the web and existing infrastructure of partners to create cost efficient, well customizable B2C and B2B sales channel supporting different payment models. The long term benefits include increase in customer loyalty. End user will be often in contact with dealer throughout the entire product life cycle.
HEIGHTEN SALES ON WEB
Ecommerce makes easy to maintain and setting up of web shop on dealer network level. The web shop can be integrated with the product database, existing websites and supplier systems. When the new product is entered into the electronic catalogue by the company, it is automatically made available in the web shop. Customers looking for spare parts can order in the web shop and pay for the part to be delivered by the dealer of their choice.
CUSTOMIZED FOR EVERY CUSTOMER
A key to generate higher sale is diversified offers and needs of different customer groups. Ecommerce includes tools for exclusive offers, creating sales campaigns and discount structure for customer groups on a global dealer or local dealer level. Every dealer can be able to access to a set of easily understandable tools, which let the user to check inventory and analyse market data.
STANDARD SOLUTION – VOLVO
Ecommerce is integrated into the backbone of Volvo’s logistics system. This ensures to be stable and reliable integration with the data base used by business area units, as well as suppliers. It is also a good platform for further expansions.

UTILIZATION OF IT TOOLS
Volvo uses Tecnomatix and Teamcenter to communicate best production methods and to support its manufacturing concept. Volvo cars are using a number of software from Siemens PLM (Product Lifecycle Management) software, to address its expanding production challenges and engineering. In the production development process, Volvo uses Teamcenter® software for number of applications. This software is also used in the applications like engineering process management, requirement management and lifecycle visualization. Several tools of Tecnomatix software and Robcad software are used to plan and manage the production process.
Volvo started to use this software in early 90’s with Robcad software to simulate robotic production lines. At present, Volvo is using final assembly (FA) and simulates body in white (BiW), and Robcad and process simulate to plan, where all these whole process are managed using Teamcenter. These provide a user-friendly user interface and drives future adoption within Volvo cars.
SINGLE BiW LINE FOR A NUMBER OF CARS
Volvo cars produce small volume of cars compared to mass automotive production. Hence, as a strategy, it builds flexible production lines which accommodate more than single model. A senior BiW analyst in Volvo car IT states that, BiW line in Gothenburg supports V60, S80, and V70 models.

VOLVO UNCERTAINITY
The climatic change is the important environmental issue for all the time in Volvo. Needless to say, it is the greatest challenge for the entire automobile industries. The need to replace the use of oil, natural gas and coal are increasing. Other drivers for reducing fossil fuels are economic and supply issues. The replacing of fossil fuels contributes to the increasing level of green house gases. Around 15% of fossil fuels are consumed by the road transport sector. Over 95% of energy used in transport comes from crude oil. From political and industrial ways the initiatives are taken to diversify the energy supply towards non crude oil sources, especially towards natural gas and renewable resources. But, changing this process is time consuming. So, Volvo looks into different solutions to face this climate change.

OVERCOMING UNCERTAINITY
Volvo is trying hard to face the demands by focussing on manufacturing vehicles that creates less pollution and helps in green house effect. Introduction of hybrid technology is the effective solution for reducing emission of green house gases produced from the vehicles. Recent research states that, efforts have resulted in the development of hybrid solution not only for heavy vehicles also for trucks and farm vehicles. The hybrid engine uses battery power when vehicle accelerates and the diesel part turns on only when the vehicle is at optimal speed. From the past decade and now, hybrid technology has been used in cars, it is designed in such a way to reduce not only fuel consumption also noise pollution and carbon dioxide emission. This new technology saves fuel up to 35%.
For the efficient and environmentally adapted transport activities, hybrid is a long term solution. Even the introduction of hybrids is successful; still there is predominant use of diesel for heavy vehicles in the future. Regular improvements in diesel fuel quality globally, better engine maintenance and engine developments are still important to continue reducing emissions. The dangerous emissions from diesel fuels like nitrogen oxide have been reduced considerably over the past 20 years. Along with this, 20% of carbon dioxide emissions are also reduced. Crude oil demand is increasing along with limitation in supply leading to increase in price, shows that diesel fuels become less feasible. Hydrogen based fuels are still number of decades away, so there is a need to work with existing alternatives. Volvo research shows that, dimethyl ether (DME) has a major potential in becoming a high alternative to present fossil fuel. Dimethyl ether is a bio mass derived fuel. Dimethyl ether emits less carbon dioxide and particulates and in fact, it has higher energy efficiency. But, its success is found by the appropriate infrastructure and reliable supply of fuel.
There are many existing technology, but we fail to access it to the market, adequate infrastructure and security of supply. Government should play a major role in developing technologies by investing more. The introductions of clean vehicles in the public procurement contract are promoted by the European Commission.
To keep the momentum against climatic change, there is a need to focus more on research efforts which supports technological development. Transforming an energy system and fuel takes more time and requires enormous resources.

FUTURE AREAS FOR RESEARCH
Supply chain management (SCM) is the hottest topic of interest for the researches over the recent years. It offers numerous possibilities to expand as the markets are differing among climate zones, political systems, countries economics, population demographics and regions. This will continue to grow since the world is integrated into one market place globally. Supply chain management is the growing and exploding field in practice as well as research. Many international firms have developed huge practices in the field of supply chain and in fact, large number of research paper in this field is growing. A company who operates in international environment deals with multiple customers and suppliers are needed to manage inventories in innovative ways. As the field grows rapidly, many companies continue to apply new knowledge and trends in their international network. However, there are some issues within supply chain management are figured out for further research.
Some issues are,
DEMAND DRIVEN SUPPLY CHAIN
Aligning demand and supply in present manufacturing environment will be challenging. Many firms have spent enough time to predict better demand. Still, forecasts are out of date, making some question relating it to near term demand volatility.
SUPPLY CHAIN IN FOOD AND SERVICE INDUSTRY
Barriers still exist to deter the research in the field of food and service industry. Even with the expansion of supply chain to international status, the researcher is left dry with limited access to corporate data and with few resources to look into the status.

CONCLUSION
This paper develops the use of Information Technology in supply chain management. In fact, IT gives opportunities for the firm to expand their markets globally. Moreover, Information Technology also enhances customer relationship management and teamwork. The advantages of Information Technology in supply chain management are numerous and indeed, vary from the context of implementation. Needless to say, Information Technology is very closely related to changes in process and most of the benefits are interlinked. To conclude, there is a need for further research on different ways to use Information Technology for supply chain collaboration and planning. Finally, detailed explanation for the lack of information sharing for supply chain is invited.

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