role of information technology in supply chain management

7/25/2019 Role of Information technology in Supply chain management

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Role of Computer

and IT in Supply

Chain Management

SUBMITTED TO:- MS. SE!I"# #T#R

SUBMITTED B$:- %I!IS &UM#RI #MIR !

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Introduction:-

o SCM concerns with fow o productand inormation between its

members/org.o Technology enable org. to avail

inormation easily.

o Technologies help to coordinate theactivities o SC.

o Dierent costs decreased due to

increasing rate o technologies.2


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ContCustomers

oMaterials andinormation eedbac

fowsoComputer datarecognitione!uipments"communicationtechnologies" actoryautomation" hardware

devices and services 3


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Importan)e of Information in an integrated

*upply )hain management en+ironment

o #emove paper based transaction which wasvery comple$ to handle

o provides a competitive positioning o

business initiatives lie cycle time reduction"implementation" implementing redesignedcross%unctional process.

o actors impacted by inormation

technology&Satisying and pleasing customer by

serving best to him

'ncrease ability to reduce inventory andhuman resource re!uirement to a

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Supply )hain organi,ational dynami)*

o (ll enterprises share )oint belie to better thecollaborative eorts

o *ower with in the supply chain is a central

issueo #etailers play important role to assess

inormation

o The +al%Mart , *,- share inormation or

mutual advantage. Through soundinormation technologies +al%Mart sharespoint o sale inormation rom its many retailoutlet directly with *,- and other ma)orsuppliers. 5


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Information and Te)hnology:

o

Development and maintenance o Supplychains inormation systems both sotwareand hardware must be addressed.

o ardware include input/output devices and

storage mediao Sotware includes the entire system and

application program used or processingtransactions management control"decision%maing and strategic planning

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Two basic types of SCM system

software are:

oSupply Chain Planning software (SCP): usesmathematical models to predict inventory levelsbased on the e0cient fow o resources into thesupply chain

oSupply Chain Execution software (SCE): isused to automate dierent steps in the supply

chain such as automatically sending purchaseorders to vendors when inventories reachspeci1ed levels


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IT for Supply Chain Management

Software Systems

2lectronic Data 'nterchange32D'4 Material #e!uirements *lanning

3M#*4

Manuacturing #esource

*lanning 3M#* ''4 2nterprise #esource *lanning

32#*4

Supply Chain Management

Systems 3SCM4 Customer #elationshipManagement 3C#M4

'nternet%based SotwareNetwork Infrastructure

+ide (rea 5etwor 8


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ER'

Enterpri*e Re*our)e 'lanning

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Enterpri*e Re*our)e 'lanning ER' Sy*tem*

o 2nterprise resource planning 32#*4 is a term used to

reer to a system that lins individual applications3or e$ample" accounting and manuacturingapplications4 into a single application that integratesthe data and business processes o the entirebusiness.

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Ma/or ER' Sy*tem*

o S(* #/8

o 9racleo *eopleSot

Toyota uses *eople Sot and S(*

o Microsot Dynamics

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EDI

Ele)troni) DataInter)hange


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Ele)troni) Data Inter)hange:o Computer%to%computer e$change o

business documents in a standard ormato Describe capability and practice o

communicating inormation between two

orgs. electronically instead o traditionalorm o mail" courier" , a$.

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The bene1ts o 2D' are&% :uic process to inormation. 6etter customer service. #educed paper wor. 'ncreased productivity. 'mproved tracing and e$pediting. Cost e0ciency.

Competitive advantage. 'mproved billing.


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Bar )oding and S)anner:

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Bar-coding and scanner.o This code speci1es name o product and its

manuacturer.o These are parallel lines at uniorm space

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Cont0

o 'ndustries adopted it in ;se in healthcare" hospitals" production houses"and ware houses etc.

o>ses to identiy the product.

o 't maes process o SCM simpler and moree0cient.

o elps to eep trac o moving products and

reduce errorso Comortable to use" aordable" easy to handle.

o -enerate accurate and timely inormation.

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Data 1arehou*e

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't s a conso ate ata ase ma nta ne


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Data 2arehou*e:

't s a conso ate ata ase ma nta neseparately rom an organi?ations productionsystem database. Many orgs. have multipledatabases. ( data warehouse is organi?ed around

inormational sub)ects rather than speci1cbusiness processes. Data held in data warehousesare time dependent" historical data may also beaggregated.

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U*e* of data 2arehou*e:-

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( Data +arehouse Delivers 2nhanced 6usiness'ntelligence( Data +arehouse Saves Time( Data +arehouse 2nhances Data :uality and

Consistency( Data +arehouse *rovides istorical'ntelligence( Data +arehouse -enerates a igh #9


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Internet and E3tranet

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Intranet +*. E3tranet

o'ntranet is to use 'nternet technology and protocol

3TC*/'*4 or the internal communicationso2$tranet is to use 'nternet technology and protocolor the internal and suppliersA communications

o+(5 Technologies

9rdinary telephone line and telephone modem.*oint%to%*oint Beased lines 3such as T; line4*ublic switched data networ 3*SD54

oSuch as (TM" rame #elay

Send your data over the 'nternet securely" usingirtual *rivate 5etwor 3*54 technology

PSDN

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Con)lu*ion:- continuous advancement o technology Customers e$pectations are also increasing

The strategic and technological innovations insupply chain will impact on how organi?ations buy

and sell in the uture. Clear vision" strong planning and technical insight

into the 'nternets capabilities is necessary

'nternet technology" +orld +ide +eb" electronic

commerce etc. will change the way a company isre!uired to do business.

Companies must reali?e the power o technologyto collaborate with their business partners.

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T#!& $OU

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role of information technology in supply chain management

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