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Information technology

4.7 Downstream supply chain management

IT can also be used in downstream SCM in areas such as

 Electronic data interchange (EDI) – link our sales system to the purchasing
system of major customers.

 E-commerce – sell online to customers. May also allow disintermediation.

 Intelligence gathering – through monitoring of online transactions, online
surveys.

 Communication – email and other IT systems will allow us to keep in touch with
customers.

 User communities – allow users to support each other.

 The use of intranets and extranets – to share information within the organisation
as well as allowing partnerships with suppliers and customers.

4.8 The impact of IT on the structure of the downstream supply chain

 Disintermediation – remove intermediate stages from the supply chain.

 Reintermediation – the creation of new intermediaries in the supply chain.

 Countermediation – creation of new intermediaries in the supply chain in
response to rivals doing the same.

Illustrations and further practice

Now try TYU question 6.

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