1. ROLE OF IT IN SCM

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.

4. IT INFRASTRUCTURE FOR
SUPPLY CHAIN INTEGRATION

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.

6. COMPARISON OF PAPER AND EDI FLOWS

7. COMPONENTS OF EDI
EDI Standard EDI Software Communication Medium

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 .

11. CHARACTERISTICS OF A
TYPICAL BAR CODE

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.

15. ERP SYSTEM COMPONENTS

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.

19. INTRANET, EXTRANET AND INTERNET
APPLICATIONS IN SUPPLY CHAIN INTEGRATION

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

24. ORDER MANAGEMENT APPLICATION

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