2. SUPPLY CHAIN INTEGRATION
Supply chain integration is nothing but integration of
various activities related to logistics system of the firm
and its further integration with logistics systems of
business partners like vendors, customers and 3PL
service providers.
Integration of logistics functions deals with a firm’ s
internal network in terms of factories, warehouses,
production equipments and service centres.
3. INFORMATION TECHNOLOGY SOLUTION
FOR
SUPPLY CHAIN INTEGRATION
For high level of supply chain integration, it is essential
to develop adequate information systems and use
information technology that manages
product flow,
information flow,
and cash flow from end to end on real- time basis.
5. ELECTRONIC DATA
INTERCHANGE (EDI)
EDI is an inter-organization computer-to-computer
exchange of standard business documents in a
structured and machine-processable format without
human intervention to improve the speed and
accuracy of the information flow.
8. BENEFITS OF EDI
The major benefits of EDI in supply chain
integration are:
Improves customer responsiveness
Reduces transaction costs and times
Increases accuracy and productivity
Strengthens supply chain relationships
Increases ability to compete globally
Improves quality of decision to exploit business
opportunities.
9. LIMITATIONS OF EDI
There are two major limitations of EDI that restricts its
scope of use, which are:
It needs highly sophisticated and private IT
infrastructure resulting into huge costs; and
As EDI is an inter-organization, computer-to-computer
exchange of standard business documents in a
structured and machine-processable format, hence,
day-to-day flexible data cannot be shared between
supply chain partners. Supply chain integration needs
more flexible information sharing on continuous basis
apart from standard business documents.
10. BAR CODE SYSTEM (BCS)
The bar code system is an identification technology
wherein there is placement of computer-readable codes
on items, cartons and containers in the form of grouping
of parallel bars (usually blocks) of different widths
separated by light spaces (usually white), again, of
different widths.
It facilitates speedier flow of logistical information such
as quick tracking receipts, movement details, product
identification, etc., with a lesser probability of error .
12. BENEFITS OF BAR CODE SYSTEM
Speeds up data entry process
Enhances data accuracy
Reduces material handling labour
Minimizes on-hand inventory
Monitors labour efficiency
Improves customer service
13. BENEFITS OF BAR CODE SYSTEM
Reduces product recall
Verifies orders at receiving and shipping
Reduces work-in-process idle time
Monitors and controls shop floor activity
Improves shop floor scheduling
Optimizes floor space
Improves product yield or reduces scrap
14. ENTERPRISE RESOURCE PLANNING (ERP)
ERP is a computerized integrated set of application
software modules for
different business processes such as production,
distribution, financial, human resources, procurement,
supply china management, etc.,
used by firms providing
operational, managerial and strategic information for making
decisions strategically to improve the productivity, quality and
competitive advantage.
16. CRITICAL ERP IMPLEMENTATION
ISSUES
Never-ending implementation
Importance of process mapping
Process redesign
Use of consultants
Excessive cost
Resistance to change
Errors during implementation
Rapid technological change
17. BENEFITS OF ERP
Improving productivity and enhancing a competitive
edge
Bringing about a tradeoff between demand and
supply
Bringing together people who work on shared tasks
Ensuring a smoother flow of inventory and
information at all levels
Reducing the replenishment cycle time
Overall organizational look-ahead capability and
control.
18. COMPONENTS OF EDI
Intranet
Intranet is an internal web of a firm, which allows only
internal users (firm’ s own employees) to access and
share data through electronic messaging.
Extranet
Extranets operate outside of the firm, connecting
vendors, channel partners, third-party logistics service
providers and/or end users to access and share internal
corporate information in restricted manner .
Internet
The internet refers to the firm’ s web site which can be
accessed from anywhere in the world by anybody.
20. EMERGING TECHNOLOGIES IN
SUPPLY CHAIN INTEGRATION
Voice Systems
It allows people to exchange data with other s through a
computer without the need for key pad entry.
It is generally through voice/speech technology.
Memory in a Button
They contain multiple microprocessors
Several pages of information can be stored in it.
Radio Frequency Technology (RFID)
It is a data collection techniques that passes product
information via radio waves to a receiving unit.
21. WEB-BASED SUPPLY CHAIN
A Web-based supply chain is dynamic, high
performance network of customer and vendor
partnerships and information flow creating new and
unique value proposition mainly due to addition of
digital value.
Value Prepositions through Web based supply
chain:
Super Service
Convenient Solution
Customization
22. WEB-BASED SUPPLY CHAIN INTEGRATION
Consumer
Advanced Distribution
Planning Channels
and Scheduling
Carriers & 3PL Collaborative
Web-Based Planning Distribution
Supply chain Forecasting & Warehouse
Replenishment
Vendors
Agile Order
Manufacturing Management
23. WEB BASED SUPPLY CHAIN & ORDER MANAGEMENT
SYSTEM
Flexible Business Process Management
Unified Data Model
Robust Integration Framework
Self-service Tools
25. COLLABORATIVE PLANNING, FORECASTING AND
REPLENISHMENT (CPFR) SYSTEM
Collaborative planning, forecasting, and replenishment is
a multi-industry that uses the Internet to achieve
cooperation across the members of a supply chain to
better sense demand, plan, and execute the flow of
goods.
26. CPFR PROCESS MODEL
Develop a front-end agreement
Create a joint business plan
Create a sales forecast
Identify exceptions for the sales forecast
Resolve/collaborate on exception items
Create all order forecast
Identify exceptions for the order forecast
Resolve/collaborate on exception items
Generate the order
27. AGILE MANUFACTURING SYSTEM
Agile manufacturing system is an IT enabled
process of web-based supply chain integration
facilitating firms to support the demand and mass
customization requirements.
Its applications support complex flow
manufacturing, the just-in-time-based, pulls
production method that enables manufacturing in
lot sizes of one.
28. AGILE MANUFACTURING SYSTEM
Benefits in web-based supply chain through agile
manufacturing application:
Greater product customization
Rapid introduction of new or modified products
Interactive customer relationships
Dynamic reconfiguration production processes
29. ADVANCED PLANNING AND SCHEDULING (APS)
SYSTEM
Advanced planning and scheduling system is high
analytical applications software that uses
mathematical models and related techniques to find
out optimal solutions to complex production and
supply problems.
Advantages of APS system:
More flexible system handling more varied supply chain
requirements.
Mathematical models based supply and support
optimization.
Optimization of supply chain structures.
Optimization is based in strategic issues of supply chain
such as, costs, customer value and services, and
profitability
30. BENEFITS OF WEB-BASED SUPPLY CHAIN
Delivers cost saving through supply chain
integration
Reduce inventory across supply chain network
Reduce procurement costs and improve vendor
management
Improve customer value and services
Increasing revenues and profitability
31. CHALLENGES TO WEB-BASED SUPPLY CHAIN
Security issues
Changes to business process
Coping with weaker supply chain links
Sharing of costs and benefits