It should be noted that the importance of information technologies in supply chain management lies in information support of operational and strategic management, such as production planning and further development of supply chain processes. Undoubtedly, information technologies play essential role in supply chain process integration (Auramo, Inkiläinen, Kauremaa, 2005). Today, information systems in supply chain management can be divided into two groups: systems for strategic and tactical planning (Supply Chain Planning – SCP), and the system for real-time execution management (Supply Chain Execution – SCE). Moreover, currently, the majority of these systems are integrated in complex ERP-systems (How technology powers supply chain, 2013).
In fact, supply chain managers should be concerned about three main flows: product flow, information flow and finances flow. It should be mentioned that product flow involves the movement of goods from supplier to customer. It also includes the possibility of customer return and/or service needs (Handfield, 2011). In turn, information flow implies the exchange of information on the status of orders, as well as updating the status of delivery. Finally, financial flow includes the concept of payments schedule, ownership arrangements and credit terms. It can be said that these three flows plays essential role in supply chain management due to the fact that based on this information, supply chain manager determines sales forecast, make a decision concerning inventory management and additions management (Sweeney, 2002).
Human and social capitals are closely interrelated and reflect the important role of staff in the modern economy. Human capital is a set of qualities that define performance of an individual. These qualities usually include health, natural abilities, education, professionalism, etc. In turn, social capital can be defined as norms of relations between individuals that increase productivity and revenue (Milken, 2009). The main difference between human capital and social capital lies in the fact that human capital can be accumulated by individual, while the concept of social capital has no meaning in terms of one individual. In other words, social capital is a capital of bonds, the value of interpersonal relationships (Cohen, 2012).
Auramo Jaana, Inkiläinen Aimo, Kauremaa Jouni (2005). The roles of information technology in supply chain management. Retrieved August 19, 2013 from http://legacy-tuta.hut.fi/logistics/publications/NOFOMA_2005_IT_in_SCM.pdf
Cohen, Brian (2012). Social Capital vs. Human Capital. Retrieved August 19, 2013 from http://www.bncohen.com/1/post/2012/01/social-capital-vs-human-capital.html
Handfield, Robert (2011). What is Supply Chain Management? Retrieved August 19, 2013 from http://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management
How technology powers supply chain (2013). Retrieved August 19, 2013 from http://articles.timesofindia.indiatimes.com/2013-01-03/infrastructure/36130025_1_technology-chain-inventory-level
Milken, Michael (2009). Prosperity rests on human and social capital. Financial Times. Retrieved August 19, 2013 from http://www.ft.com/intl/cms/s/0/27da5532-b112-11de-b06b-00144feabdc0.html#axzz2cP4DcnCS
Sweeney, Edward (2002). The Four Fundamentals of Supply Chain Management. Dublin Institute of Technology. Retrieved August 19, 2013 from http://arrow.dit.ie/cgi/viewcontent.cgi?article=1027&context=nitloth