Mics Assignment B

BY Deepika Parashar 09609026 Anshu sood 09609122 Shweta Agarwal 09609051 Japneet Singh 09609131 Introduction y Companies are trying to improve their agility level with the objective of being 1) Flexible 2) Responsive to meet the changing market requirements. Various companies have decentralized their value-adding activities by outsourcing and developing virtual enterprise (VE). y This highlight the importance of information technology (IT) in integrating suppliers/partnering firms in virtu

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Mics Assignment B

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Information systems in supply chain integration

and management

BY
Deepika Parashar
09609026

Anshu sood
09609122

Shweta Agarwal
09609051

Japneet Singh
09609131
Introduction

Companies are trying to improve their agility level with the

objective of being
1) Flexible
2) Responsive to meet the changing market requirements.

Various companies have decentralized their value-adding

activities by outsourcing and developing virtual enterprise (VE).

This highlight the importance of information technology (IT) in

integrating suppliers/partnering firms in virtual enterprise and
supply chain.
Supply chain management
‘SCM is defined as the integration of key business
processes from end user through original suppliers that
provides products, services, and information and hence
add value for customers and other stakeholders.’

SCM is an increasingly applied operations paradigm

for enhancing overall organizational competitiveness.

Information technology in supply chain management

It is impossible to achieve an effective supply chain without

IT.

Information system (IS) is required for sharing information
on various value-adding activities along the supply chain.

IT in SCM
Strategic planning for IT in SCM
 Virtual enterprise and SCM
E-commerce and SCM
Infrastructure for IT in SCM
Knowledge and IT management in SCM
Implementation of IT in SCM
Organizational Reason
 Strategic planning of IT in SCM includes:
1. Organizational structure
2. Awareness of top management
3. Business processes,
4. Strategic alliances, and
5. Information technology that influence the overall performance of
IT-enabled SCM
 Also Total quality management (TQM) requires teamwork,
collaborative supported work, training and education in value
adding processes. So this is the framework for measuring the
impact of IT on Quality management.
 The emergence of new network technologies and expansion of the
Internet can improve an organizations internal and external
communication capabilities.
 Organizational design for IT-enabled SCM is flexible.
 Standardization of business processes and IT systems facilitate an
effective and protected access information in a supply chain.
Technological
 Lack of IT in an organization can make the organization obsolete and
not to qualify being as one of the partners in a virtual enterprise.
 IT helps to improve collaborative-supported work using different
automation that includes CAD,CAM and CIM.
 It would be difficult to survive in a global market without an IT-
enabled SCM.
 E-business technologies
 Strategic consideration of IT-enabled SCM is important since
companies are interested in long term survival.
 Strategic planning of IT enabled SCM is important in the
development of a supply chain.
Virtual enterprise in SCM
 IT is so important in developing and operating a Virtual enterprise
(VE)/virtual organization(VO).
 Virtual enterprise is a network of independent companies, often
former competitors.
 Some of the key factors in virtual enterprise development are IT-
enabled SCM, partnership, virtual enterprise and supply chain,
and virtual enterprise and IT.
Partnership
Managerial and cultural aspects of strategic partnerships in
logistics involving such issues as ‘‘openness to innovation’’ and
‘‘trust’’ are just as critical as IT.

Virtual teams and supply chain

• Virtual teaming is the most appropriate mechanism to examine the
relationship between all parties along the value chain, created across a
distributed supply chain, with members separated geographically.
• E-commerce again helps here.
Virtual enterprise and IT
 Virtual enterprise is based on strategic alliances of partners based
core competencies.
 It becomes more complicated to integrate partners with different
objectives and platforms to function.
 This could be achieved by suitable enterprise resource planning
systems including e-commerce and IT for a co-operative
supported work in such a virtual enterprise environment.
 Without IT, one could hardly imagine a virtual enterprise
development.
E-commerce and SCM
 EC can take a variety of forms such as EDI, direct link-ups with
suppliers, Internet, Intranet, Extranet, electronic catalog ordering,
and e-mail.
 IT has a pivotal role to play in improving communication and co-
ordination.
 ERP systems such as SAP, via Extranets connect not only
different functions within a firm but also among the firms supply
chain partners
Purchasing
 The increased popularity of e-commerce is due to a multitude of
operational benefits it can bring to purchasing practices.
 E-commerce is changing the competitive environment in a
number of ways:
a. reshaping buyer-supplier relationships,
b. improving core business processes,
c. providing electronic intermediation, and
d. reaching new segments and markets.
Operations
 Role of the Internet within the manufacturing supply chain are:
(a) a detailed examination of the current usage and operation of the
Internet within manufacturing supply chains, and establishing
industry practice in this area,
(b) Building a dynamic model of the web-based supply chain in each
of the collaborative industrial sectors,
(c) HTML prototype for the supply web model, and
(d) Sector-based models and prototypes.
Logistics
B2B online auctions over the Internet for direct material
purchasing and presents common issues.
UPS Worldwide Logistics
Virtual logistics.
The experiences reported indicate the IT is an indispensable tool
for logistic operations.
Infrastructure for IT in SCM
 Infrastructure for IT in SCM consists of Internet connectivity,
hardware and software including application systems integration.

i. Organizational
• Adaptation of e-business infrastructure involves deep level changes that
affect core elements of an organization, including mission, vision, business
strategy, goals, culture, technology, training and policies.

ii. Technological
• ERP systems have played a major in developing SCM.
• SAP R/3 has been widely implemented to create value-oriented supply
chains.
Virtual enterprise and SCM
VE/VO becomes an important strategy for achieving agility in supply chain.
Without IT, it is difficult for a company to develop a virtual enterprise.
Virtual logistics using e-commerce will contribute
to the agility of an organization.
Different e-commerce applications like B2B, business to consumers and
business to administration would support the operations of virtual
enterprise. Training in information technology including JAVA, XML and
web development is required for the development of a VE/VO.
Companies need to assess their business process and IT environment and
the VE, so that a suitable framework can be developed based on the overall
support available from the company.
Many information-sharing systems and collaborative-supported systems
including collaborative teams should be employed for integration of
activities in VE.
E-commerce and SCM
The impact of e-commerce on SCM is much larger as it facilitates inter
organizational communication and in turn reduces cycle times. Once a
company places its products/services, it can expect an increase in
demand. This requires a SCM system, which effectively meet the
growing demand. Also, the supply chain should be agile in meeting
customized
online requirements.
Variety of e-commerce models available depending upon the transactions
that take place between different parties.
For example, B2C, B2B and customer to customer are some examples of
e-commerce models. This could well be achieved by VE and ERP systems.
Infrastructure for IT in SCM
Since the demand for high speed Internet services for processing voluminous data,
there is a need for high speed Internet Portals. There are many Internet Portal
(Yahoo, AOL, JUNO, etc.) offer services to companies to have their products on
e-marketplace.
A need to trade-off between the quantity and quality of information that
should be made available on their web site and the speed of access. Developing IT
infrastructure requires investment in Internet services, web development and
updating.
Companies should decide the type of networks (Intranet and Extranet) that would
be suitable for their business. The infrastructure question has been crucial for
the successful application of IT in SCM. Many companies fail to recognize their
weaknesses and strengths in terms of their streamlining their business
processes, and lack of knowledge and computer skills.
An intelligent simulation model using object-oriented modelling would be useful
for this purpose. Government and industry consortium support are essential for
developing
(1) B2B e-commerce, (2) e-commerce policies and ethics, and (3) costing system.
IT in SCM
Conclusion
Integrating the supply chain activities is driven by the need to streamline
operations to achieve quality service to customers.
As a result of the literature survey, the major components of IT-enabled
SCM comprises of six major areas:
(i)Strategic planning
(ii) Virtual Enterprise
(iii) E-commerce
(iv) Infrastructure
(v)Knowledge and IT management
(vi) Implementation
Following are comments that derived from the literature survey on IT in
SCM:
• The strategic information systems should include the strategic objectives
of SCM.
• Information systems architecture needs to be designed for SCM that
could be different from that of traditional organizations.
• Performance measures and metrics need to be established for
measuring the performance and suitability of IT in SCM.
• There is a need for developing standards and legal frameworks for the
application of IT in SCM.
• The alignment between information model and supply chain model or
objectives needs further investigation.