Scribd
Upload
51 views

IT in SCM

Information technology plays a key role in supply chain management by enabling the flow of accurate and timely information across customer relationship management, internal supply chain management, and supplier relationship management processes. This information is critical for strategic planning, demand forecasting, production scheduling, order fulfillment, and other supply chain activities. Effective use of IT, such as enterprise resource planning systems, can optimize performance across the entire supply chain rather than just individual stages.

Uploaded by

brajeshsinghfdd
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
51 views

IT in SCM

Information technology plays a key role in supply chain management by enabling the flow of accurate and timely information across customer relationship management, internal supply chain management, and supplier relationship management processes. This information is critical for strategic planning, demand forecasting, production scheduling, order fulfillment, and other supply chain activities. Effective use of IT, such as enterprise resource planning systems, can optimize performance across the entire supply chain rather than just individual stages.

Uploaded by

brajeshsinghfdd
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 22

Supply Chain Management

Information Technology
and the Supply Chain
Outline
• The Role of Information Technology in the
Supply Chain
• The Supply Chain IT Framework
• Customer Relationship Management
• Internal Supply Chain Management
• Supplier Relationship Management
• The Future of IT in the Supply Chain
• Supply Chain Information Technology in
Practice
Role of Information Technology
in a Supply Chain
• Information is the driver that serves as the “glue” to create a
coordinated supply chain
• Information must have the following characteristics to be
useful:
– Accurate
– Accessible in a timely manner
– Information must be of the right kind : what is required and
what is not required.
• Information provides the basis for supply chain management
decisions
– Inventory
– Transportation
– Facility
Characteristics of Useful
Supply Chain Information
• Accurate
• Accessible in a timely manner
• The right kind
• Provides supply chain visibility
Use of Information
in a Supply Chain
• Information used at all phases of decision
making: strategic, planning, operational
• Examples:
– Strategic: location decisions
– Planning: Forecasting and aggregate planning
– Operational: what products will be produced
during today’s production run
Use of Information
in a Supply Chain
• Inventory: demand patterns, carrying costs,
stockout costs, ordering costs
• Transportation: costs, customer locations,
shipment sizes
• Facility: location, capacity, schedules of a
facility; need information about trade-offs
between flexibility and efficiency, demand,
exchange rates, taxes, etc.
Role of Information Technology
in a Supply Chain
• Information technology (IT)
– Hardware and software used throughout the
supply chain to gather and analyze information
– Captures and delivers information needed to
make good decisions
• Effective use of IT in the supply chain can
have a significant impact on supply chain
performance
The Importance of Information
in a Supply Chain
• Relevant information available throughout
the supply chain allows managers to make
decisions that take into account all stages of
the supply chain
• Allows performance to be optimized for the
entire supply chain, not just for one stage –
leads to higher performance for each
individual firm in the supply chain
The Supply Chain IT Framework
• The Supply Chain Macro Processes
– Customer Relationship Management (CRM)
– Internal Supply Chain Management (ISCM)
– Supplier Relationship Management (SRM)
– Plus: Transaction Management Foundation
• Macro Processes Applied to the Evolution of
Software
Macro Processes in a Supply Chain

Supplier Internal Customer


Relationship Supply Chain Relationship
Management Management Management
(SRM) (ISCM) (CRM)

Transaction Management Foundation (TMF)


Customer Relationship
Management
• The processes that take place between an
enterprise and its customers downstream in the
supply chain
• Key processes:
– Marketing: Customers to target, products to offer,
how to price, offers, discounts.
– Selling: product information, information
needed by sales person for making a sale,
– Order management: information for managing
customer order, order status, tracking
– Call/Service center: customer queries, problems
and solution .
Types of CRM Software
• Best- of – breed: Siebel Systems
• ERP players: SAP and oracle
• CRM process are crucial as it provides a
interaction between an enterprise and customers
• CRM process is the starting point when
improving supply chain performance
• CRM process must be linked with internal
operations to optimize the performance.
• CRM softwares has been the fastest growing and
now the largest category among three macro
process
Internal Supply Chain Management
• Includes all processes involved in planning for
and fulfilling a customer order
• ISCM processes:
– Strategic Planning: network design.
– Demand Planning: forecasting demand.
– Supply Planning : production schedules, material
requirement planning,
– Fulfillment: Transportation, warehousing
applications.
– Service: After sale service, spare parts.
• There must be strong integration between
the ISCM and CRM macro processes
• ISCM macro process aims to fulfill
requirements generated by CRM.
• Best- of – breed: i2 technologies and
Manugistics
• ERP: SAP and Oracle
Supplier Relationship Management
• Those processes focused on the interaction
between the enterprise and suppliers that are
upstream in the supply chain
• Key processes:
– Design Collaboration: Manufacturer and supplier.
– Sourcing
– Negotiate
– Buy
– Supply Collaboration
The Transaction Management
Foundation
• Enterprise software systems (ERP)
• Real value of the TMF exists only if decision
making is improved
• The extent to which the TMF enables
integration across the three macro processes
determines its value
TMF players
• SAP
• Oracle
• Peoplesoft
• JD Edwards
• Baan
The Future of IT in the Supply
Chain
• At the highest level, the three SCM macro
processes will continue to drive the evolution
of enterprise software
• Software focused on the macro processes will
become a larger share of the total enterprise
software market and the firms producing this
software will become more successful
• Functionality, the ability to integrate across
macro processes, and the strength of their
ecosystems, will be keys to success
Supply Chain Information
Technology in Practice
• Select an IT system that addresses the
company’s key success factors
• Take incremental steps and measure value
• Align the level of sophistication with the need
for sophistication
• Use IT systems to support decision making,
not to make decisions
• Think about the future

You might also like