Describe the role that information technology can play in enhancing supply chain security?
Describe the role that information technology can play in enhancing supply chain security. Focus the discussion on the following technologies: RFID, shipment tracking and tracing, and supply chain planning systems.
Information technology has a large role in enhancing supply chain security through RFID’s, shipment tracking and tracing, and supply chain planning systems. In 2004 the U.S. Department of Defense mandated that its suppliers attached Radio Frequency Identification Tags to any good sold in the military. This is a good practice for any type of business with security concerns because it does not require contact or line of sight for communication. If a product was stolen or lost it is much easier to find using RFIDs. Shipment tracking and tracing is a procedure to locate lost shipments. By using this technology companies are able to know where there products are in route to their destination. If the product happens to not arrive at a destination you can quickly find out what the problem was in route to its destination and where it took place. Supply chain planning systems are designed to assist in evaluating supply chain alternatives and advise in supply chain decision making. This allows you to know the precise times the product should be arriving at each destination. It can be broken down into sections including production scheduling, inventory resource planning, and transportation planning. By having a set supply chain planning system you are able to have more efficient security in terms of being prepared at each step of the supply chain.