Effective Financial Management of Supply Chain through the Use of Emerging Technology

Abstract

In today's globalization business world, the contemporary organizations are flourishing to apply the innovative as well as modern business techniques in order to enhance their supply chain management practices. Moreover, the organizations give ample importance while developing their business strategies to use backward integration strategies along with their other main strategies. There are many emerging technologies available as an option for the organization now days; however, for the purpose of this paper Information Technology (IT) use along with the financial management of supply chain is discussed as a general. It is believed that, effective use of IT might facilitate both the efficiency and transparency of communication amongst the different nodes of supply chain; furthermore, it will enable the organizations to save their costs and effectively manage the finances. This paper builds a conceptual model of IT use, information sharing, and supply chain practices (SCPs) and how the impact on SCPs might affect the level of competitive advantage. Specifically, this paper hypothesized the impact of IT use and information sharing on supply chain management success related to the level of competitive advantage. Furthermore, the paper also hypothesized on the basis of resource-based view of the firm, the effective use of IT and the active information sharing might enhance the supply chain performance and might increase the level of competitive advantages for the organizations.