Contents
Declaration: 1
Introduction 3
Literature Review 4
Critical Analysis 6
Discussion 9
Conclusion 10
Bibliography / References 11

Word Count: 3772
Introduction

The use of IT is considered as a prerequisite for the effective control of today’s complex supply chains. This is because companies of today are not independent entities but part of a multi company, multi country global network of organizations and corporations. The rapid development in technology in both the manufacturing as well as the information sectors has increased the cost pressure and demand from customers [1]. Information technology (IT) has become a matter of serious concern for managements today. With developments in telecommunications there is an increasing trend for information systems to span boundaries between countries, organizations and the relatively separate components of large, geographically dispersed corporations.
Traditional production – distribution schemes have been drastically changed over the years. The emergence of low-cost communications and information processing has made it possible for companies to revolutionize the way they operate internally, especially in distributing information throughout their organization on new and existing products, production and shipping schedules, engineering and technical requirements, and costs of manufacturing and distribution [2]. Despite the acknowledged importance of the use of IT in supply chain management (SCM), the number of studies assessing the use of IT in the supply chain context is limited.
A study conducted by Forrester Research indicates that U.S. manufacturers are increasingly dependent on the benefits brought about by IT to: improve supply chain agility, reduce cycle time, achieve higher efficiency and deliver products to customers in a timely manner [3].However, IT investment in the supply chain process does