It gives a small idea of different functions of Information technology in the supply chain management.

1. Role
IT in SCM

4. Introduction to IT used in Supply Chain
• Recent development in technologies enables the organization to avail
information easily in their premises.
• Helps to coordinates the activities to manage the supply chain.
• In the field of supply chain management, there has always been an
abundance of data.
• Shipping bills alone make a lot of information. Gathering the data is
important; evaluating the information, setting benchmarks and measuring
performance and progress is critical, the purity of raw material is
important.
• The small issues can have a measure impact. From the data available
many reports are generated, which can pinpoint simple solutions that can
generate cost saving and or service improvements.

5. Traditional View of Supply Chain
1
• Focus on competition
2
• Supply Chains contain far more than the required inventory
3
• Products are handled too many times
4
• Physical carriers struggle to maintain costly equipment on slim margins
5
• No player has enough information to synchronies/optimizes the entire chain.

6. Consequences of Traditional View
1
• Lack of knowledge of the end-to-end demand function – high levels of uncertainty
2
• Erratic variations in demand (Bull whip effect)
3
• Fragmentation of processes and operations
4
• Lack of process integration with partners
5
• Need for integrated information systems

7. Areas In Which IT Use For Optimizing Supply
Chain
• Information
integration is
sharing of
information
among supply
chain members.
• It is exploiting
the information
collectively by all
the people.
Supply
chain
integration
Work flow
coordination
synchroniz
ation
Quick
response
ECR
Technology
Assimilation

8. Importance of IT Management In Supply
Chain
Gathering and evaluating information
For report generation and decision making
Integrating and coordinating processes of supply chain
Cost of information sharing
Quick response

9. Benefits of Information Technology In
supply Chain
Provide
information
availability
and visibility
Enable single
point of
contact
Allow
decisions
based on
total supply
chain
information
Enable
collaboration
with partners

10. Transaction
processing
••Reduction of Cost.
••Volume of Transactions.
••Speeding up Information transfer.
••Elimination of Human Errors.
Supply chain
planning and
collaboration
•Unpredictable and logistically
demanding Environment.
Order tracking
and delivery
coordination
•Project Orientation of the Business.
•In Transit Delivery Consolidation.
Type of IT Use in SCM Drivers of Using IT in SCM

11. Software
Agents
Data Mining
agents
Buyer
agents or
Shopping
bots
Monitoring
and
Surveillance
Agent.
User agents
(personal
agents)

13. Enterprise Resource Planning (ERP)
Systems
• Enterprise Resource Planning (ERP) Systems are Enterprise-wide
Information Systems used for automating all activities and functions
of a business.
• These are transaction - based information systems that are
integrated across the whole business.

17. DSS
Integrate Current
Information
Compare Sales
Information
Forecast Revenue
Information
Information About
Consequence of different
Alternative Decisions

20. Transportation Management
Systems
• Transportation Management Systems provide more visibility into
shipments and orders. Scheduling issues are also addressed on time.
Multiple transportation options can be explored as a result of earlier
visibility into the supply chain.
• Transportation Management Systems provide more visibility into
shipments and orders. Scheduling issues are also addressed on time.
Multiple transportation options can be explored as a result of earlier
visibility into the supply chain.

24. Advantages of Transport Management
System
• Increase customer service
• Increase in Warehouse Efficiency
• Develop New Delivery Capabilities
• Inventory Reductions
• Cash Flow Improvements

26. Electronic Commerce
• Electronic commerce involves the broad range of tools and
techniques used to conduct business in a paperless environment.
Hence it comprises electronic data interchange, e-mail, electronic
fund transfers, electronic publishing, image processing, electronic
bulletin boards, shared databases and magnetic/optical data capture.

27. • Electronic commerce
helps enterprises to
automate the process
of transferring records,
documents, data and
information
electronically between
suppliers and
customers, thus
making the
communication
process a lot easier,
cheaper and less time
consuming.

29. Electronic Data Interchange
• Electronic Data Interchange (EDI) involves the swapping of business
documents in a standard format from computer-to-computer. It
presents the capability as well as the practice of exchanging
information between two companies electronically rather than the
traditional form of mail, courier, & fax.

32. Purchase request
initiated in the
organization
Inventory and
warehousing
Receiving
department
Purchasing
department
Paper-based
information
Finance
department
Order delivery
Payment
Buyer
Paper-based
information
Finance
department
Shipping
department
Manufacturing
department
Sales
department
Seller
Order Delivery Information Flow Without EDI

33. Purchase request
initiated in the
organization
Inventory and
warehousing
Receiving
department
Purchasing
department
EDI capable
computer
Finance
department
Automated order
confirmation
Payment
Buyer
EDI capable
computer
Finance
department
Shipping
department
Manufacturing
department
Sales
department
Seller
Billing
details
Purchase
order delivery
Order Delivery Information Flow With EDI

35. The major advantages of EDI
• Instant processing of information
• Improvised customer service
• Limited paper work
• High productivity
• Advanced tracing and expediting
• Cost efficiency
• Competitive benefit
• Advanced billing

36. The application of EDI supply chain partners can
overcome :
• The deformity and falsehood in supply and demand
information by remodeling technologies to support real
time sharing of actual demand and supply information.

37. Barcode Scanning
• Bar Codes are the representation of a number or code in a form
suitable for reading by machines. Bar codes are widely used
throughout the supply chain to identify and track goods at all stages
in the process. Bar codes are a series of different width lines that may
be presented in a horizontal order, called ladder orientation, or a
vertical order, called picket fence orientation.

38. Radio Frequency Identification
• RFID is a vital piece of technology that can provide innumerable
benefits to the business owner.
• RFID chips are placed on every product and provide a way for
business owners to easily track their inventory. Due to the increased
visibility RFID chips provide, they will substantially improve your
supply chain efficiency by detecting any order anomalies as they
occur, enabling employees to immediately correct mistakes.

39. • In addition, it allows for easier and more consistent tracking, enabling
business owners to have maximum control and visibility over their
products at all times.
• RFID chips provide computerized product management, they can
eliminate the potential for errors, simplify the supply chain, and
reduce operating costs.

42. Sales force Automation
• Sales force automation is a technique of using software to :
• Automate the business tasks of sales
• Including order processing
• Contact management
• Information sharing
• Inventory monitoring and control
• Order tracking
• Customer management
• Sales forecast analysis
• Employee performance evaluation

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You