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• The supply chain management (SCM) is the management of a
network of interconnected businesses involved in provision of
product and services packages required by the end customers in
a supply chain.
• The organizations making up the SCM are linked together
through physical flows and information flows. Physical flows
involve the transformation, movement, and storage of goods
• A supply chain is a network of facilities and distribution
options that performs the functions of procurement of
materials, exchanging of these materials into intermediate and
finished products, and the distribution of these finished
products to customers.
• Supply chain management is typically viewed to lie between
fully vertically integrated firms, where the entire material flows
is owned by single firm, and those where each channel member
• At the individual level
Learning takes place each time when a worker makes contact with a
Improvisation to the current practices and gets feedback from customer
Learning would be in tacit form but the degree of interaction gives rise to
• At business unit level
Learning would take place when two or more workers learn from same
activity or experience.
Emphasis at this level is on knowledge embodiment and sharing process.
Tacit knowledge could be lost by companies.
Companies codify it in some form of electronic document where tacit
knowledge is transformed into explicit knowledge.
• At supply chain level
Learning would take place when the organization develops systemic
processes to acquire, use and communicate organizational knowledge.
Level scenario planning and computer simulations can provide a point
for setting the knowledge management task.
Emphasis would be on to decode knowledge in an explicit form of
It may enhance the supply chain operation in the form of improved raw
material, product, service and manufacturing.
• Coca cola is one of the largest companies involved in supply chain
• Company uses knowledge management in supply chain for an effective and
faster supply of its product.
• They record the useful information and trends in their information collection
system and on a daily basis practice expert’s starts finding out learning from
• Company is using it for supply chain management as well as marketing
• Customers are important for every company and with it the chain members
are also important.
• Knowledge in supply chain is collected first and then it will be analyzed and
smartly fused in supply chain
• After a period of time this will be measured by analyzing the
supply performance whether it’s increasing, decreasing, still the
• Collection of information is the process in which the time
period of complete chain and as well as the cost involved in it
is collected and finally compared with standards and effective
• Company is getting better result after using KM.
• Company is planning to use KM in other departments to get
• Manufacturers do not rely on forecasting anymore.
• also, STOCKING is proving to be very costly.
• They follow the new concept of BUILD-TO-ORDER.
• So business houses are now emphasizing on knowledge
• They are building strong bonds with the supplier.
• Main AIM is to reduce time between the order placement
and delivery, and also to decrease the inventory cost.
• Company also makes profit in terms of distribution.
• Knowledge management facilitates
aggregation and dissemination of organization’s collective intelligence.
provide numerous benefits.
enabling innovation and improving efficiency.
• KM in world Bank
build a world-class knowledge management system.
to capture and organize knowledge.
make it more readily accessible to the staff, clients and partners.
strengthen the knowledge dissemination and capacity building efforts.
• Organization uses information system for sharing information within
and outside the organization.
• Helps organizations to easily maintain databases of clients and
generate reports to make decisions.
• Great tool for the organization as at all level of the organization it
helps in easy retrieval of information from the system and making
• Knowledge management provides benefits in customer relationship
Reduced research time
Increased resolution accuracy
Reduced training time
Management of increasing service volumes
Creation of service insight
• Supply chain organizations practice functional organization.
• The main problem of functional organizations
• Organizations should eliminate multiple boundaries and reduce the
• The major obstacle to learning is moving knowledge across supply chain
• It is not easy to cultivate a learning culture and even more difficult is to
stick to change.
• The rate at which individuals and organizations learn may become the only
sustainable source of competitive knowledge.
• The success in strategic execution of a business process or business model
may be accelerated with carefully chosen technologies. However, in absence
of good business processes and business model, even the most sophisticated
technologies cannot ensure corporate survival.
RTE (Real Time Enterprise):
• The New Knowledge Management i.e the RTE enterprise is based upon the
premise of getting the right information to the right people at the right time
• For example, organization such as Gillette , Wal-Mart are trying to cut short the
delay between a customer order, the restocking and its shipment of inventory
with the help of RFID (radio-frequency detection) tags, also known as smart
To turn into an RTE, an enterprise must renovate its software infrastructure to
build an enterprise nervous system (ENS). The essential technologies inside or
supplementing an ENS should include:
Business process management (BPM)
• Knowledge management tools
• Data warehouses
• Database management systems (DBMS)
• Implementation of EDI
• Real-time analytics
Companies like cisco prided itself about the RTE technologies that
offered it continuous integration of real time data within and across its
supply chain and customer ordering systems. The company had
renowned faith in its technologies for projecting modeling and decision-
EDI (Electronic Data Interchange):
EDI is the backbone of the automated supply chain system. During the
implementation of EDI, one ﬁrm starts adoption and tempts other ﬁrms in the
supply chain to accept in order to standardize data formats and improve
coordination and communication within and between organizations of the
Some of its advantages are
(i) The elimination of data reentry with the consequent risks of copying
errors; process speed also is improved. So, cost reductions can be
(ii) EDI is the inter-organizational exchange of business
documentation in structured, machine process able form.
(iii) EDI provides communication between trading partners that agree to
exchange EDI transactions.
(iv) EDI eliminates the paper documents associated with common business
(v) EDI message can be immediately processed by receiving computer without
any human intervention or interpretation or re-keying
(vi) One other advantage of EDI is that it generates the functional
acknowledgment whenever an EDI message is received, and is electronically
transmitted to the sender.
The flow diagram of the functioning of EDI is shown Below:-
• Each function has a specific EDI code.
• All the process of communication between two parties
are well encrypted by trading network in order to maintain
the privacy and secrecy of it.
FLOW OF EDI
The document numbers above correspond to the following:
• EDI 850 = Purchase Order (PO)
• EDI 810 = Invoice
• EDI 997 = Functional Acknowledgement
Axon softwares Ltd.
Axon software is integrated with EDI order tenders
• Organizations are becoming aware of the need to have a clear knowledge
• Knowledge management has started to convince companies that IT is just a
tool and not solution.
• KM organizations clearly realize the benefits of sharing knowledge and
perceived advantages outweigh the disadvantages.
• Should address problem of knowledge sharing that would lead to mistrust
and loosing sensitive information and even losing business itself.
• Supply chain management and knowledge management are viewed as
complimentary initiatives to maximize the overall benefits.