An intranet is an internal network within an organization that uses TCP/IP protocols like the internet. An extranet allows controlled external access through authentication. Intranets and extranets are commonly used in large companies for information sharing. Effective supply chain management (SCM) involves planning, sourcing, production, delivery, and returns across a network of suppliers, producers, distributors, and customers. Key benefits of SCM include reduced costs, improved quality and customer satisfaction.

1. Intranets and supply chain Management

2. Intranets
• An intranet is an organization's internal network that uses the TCP/IP
protocols of the Internet"
• "An extranet is an intranet that is accessible by authorized external
parties who are not members or employees of the organization“
This external access is facilitated by use of a password that allows you
to get through a protective firewall

3. cont’d..
• Access to Intranets is usually strictly controlled within a corporate
group
• Intranets are most often found in
banks
IT companies
manufacturing companies
large retail companies
service companies (ie, travel, hotel)

4. Cont’d..
• Access to Extranets is quite open and allows for independent groups
to collaborate - usually connects suppliers to a big manufacturer
• Extranets are most often found in
IT services
Computer companies (hardware)
financial services
travel
manufacturing
professional services
real estate

5. Application of intranets
Enable sharing of
corporate policies
corporate procedures for caring out complex actions with many variables
timetables for people and events
Scheduled information

6. Supply chain management(SCM)
• A supply chain is a network of facilities and distribution options that performs
the following functions;
 procurement of materials
 transformation of these materials into finished products
 distribution of these finished products to customers.
• Electronic supply chain management (e-SCM) is a collaborative use of
technology to improve the operations of supply chain activities as well as the
management of supply chains (Turban et al., 2012)
• Supply Chain helps in promotion of information sharing along the chain like
forecasts, sales data, & promotions

7. Cont’d..
• It also comprises movement and storage of raw materials that are
involved in work in progress, inventory and fully furnished goods.
• This can be done by companies with a very good and tight hold over
internal inventories, production, distribution, internal productions
and sales.
Main objective of SCM–To monitor and relate production, distribution,
and shipment of products and services

8. Cont’d..
• SCM spans the entire supply chain ecosystem/network.
• Important activities include determining ;
Transport vendors
Credit and cash transfers
Suppliers
Distributors
Accounts payable and receivable
Warehouse and inventory
Order fulfillment
Sharing customer information, forecasting and production information

9. Departments in SCM

10. SCM – Process flow
Different types of flow in supply chain management
• Material flow-
flow of an item from the producer to the consumer
can also flow from the consumer to the producer for any kind of repairs, or
exchange for an end of life material.
• Information/Data flow
Customer- supplier; comprises the request for quotation, purchase order, monthly
schedules, engineering change requests, quality complaints and reports on supplier
performance.
Supplier –customer; presentation of the company, offer, confirmation of purchase
order, reports on action taken on deviation, dispatch details, report on inventory,
invoices.

11. Cont’d..
• Money flow
Money flows from the clients to the respective producer.
 Flow of money also flows from the producer side to the clients in the form of debit
notes.
• A customer is the most integral part of the supply chain. A supply chain consists of
several sources and resources at various stages, and hence we may be right to call
it a “supply network” or supply web more accurately

12. Cont’d..

13. Cont’d..

14. Case 1: Flipkart logistical approach

15. Case II Amazon

16. Scenario: supply chain for beer

17. Decision phases
• These are different stages involved in supply chain management for
taking an action or decision related to some product or services.
Successful supply chain management requires decisions on the flow of
information, product, and funds that fall into three decision phases.
Supply chain design (Strategy) management makes the majority of the
decisions.
 The decision to be taken takes into account areas such as long-term forecasting
and the cost of goods.
These decisions consider the prevailing and future conditions of the market.
Decisions comprise of the structural layout of supply chain.
 After the layout is prepared, the tasks and duties of each is laid out.

18. Cont’d..
Supply chain management decision (Planning)
It is concerned with short term planning
 Both demand and supply are put into consideration
In order to understand customers’ demands, a market research should be done.
Awareness and updated information about the competitors and strategies used by
them to satisfy their customer demands and requirements is paramount
Operational level (Operation)
consists of the various functional decisions that are to be made instantly
within minutes, hours or days.
 The objective behind this decisional phase is minimizing uncertainty and
performance optimization.
Eg. All activities concerned with handling customers’ order up to delivery
of product

19. Supply chain segmentation
• It is a breakdown of the total supply chain into several supply chain solutions.
• Segmentation is the ability to deliver differentiated supply chain solutions
based on various decision possibilities.
• Done by Supply chain management and top management.
• Models for supply chain segmentation.
 Product based segmentation
 customer based segmentation
 market parameters
Task. Explain the different models above

20. Bullwhip effect
• One outcome of the lack of supply chain coordination is the bullwhip
effect
• Fluctuations in orders increase as they move up the supply chain
from retailers to wholesalers to manufacturers to suppliers.
• The bullwhip effect distorts demand information within the supply
chain, with each stage having a different estimate of what demand
looks like.

21. Cont’d..

22. Bullwhip Effect in a Supply Chain
Supply chain coordination(SC)
 All stages in the supply chain take actions together (usually results in greater total supply
chain profits).
SC coordination requires that each stage take into account the effects of its
actions on the other stages.
Lack of coordination results when:
 Objectives of different stages conflict or
 Information moving between stages is distorted
The lack of coordination hurts both responsiveness and cost in a supply chain by
making it more expensive to provide a given level of product availability

23. Causes of Bullwhip effect
• Disorganization between each supply chain link; with ordering larger or smaller
amounts of a product than is needed due to an over or under reaction to the
supply chain beforehand.
• Lack of communication between each link in the supply chain makes it difficult
for processes to run smoothly.
Managers can perceive a product demand quite differently within different links of the
supply chain and therefore order different quantities.
• Free return policies; customers may intentionally overstate demands due to
shortages and then cancel when the supply becomes adequate again.
without return forfeit retailers will continue to exaggerate their needs and cancel orders;
resulting in excess material.

24. Cont’d..
• Price variations – special discounts and other cost changes can upset regular buying
patterns.
 Buyers want to take advantage on discounts offered during a short time period, this can cause
uneven production and distorted demand information.
• Demand information – relying on past demand information to estimate current
demand information of a product does not take into account any fluctuations that
may occur in demand over a period of time.
• Price variations – special discounts and other cost changes can upset regular buying
patterns.
Buyers want to take advantage on discounts offered during a short time period, this can cause
uneven production and distorted demand information.
• Demand information – relying on past demand information to estimate current
demand information of a product does not take into account any fluctuations that
may occur in demand over a period of time.

25. Example
• The actual demand for a product and its materials start at the customer, however often
the actual demand for a product gets distorted going down the supply chain.
• Let’s say that an actual demand from a customer is 8 units, the retailer may then order 10
units from the distributor; an extra 2 units are to ensure they don’t run out of floor stock.
• The supplier then orders 20 units from the manufacturer; allowing them to buy in bulk so
they have enough stock to guarantee timely shipment of goods to the retailer.
• The manufacturer then receives the order and then orders from their supplier in bulk;
ordering 40 units to ensure economy of scale in production to meet demand.
• Now 40 units have been produced for a demand of only 8 units; meaning the retailer will
have to increase demand by dropping prices or finding more customers by marketing and
advertising.

26. Components of Supply Chain Management
• Planning
Whether organization plans to manufacture goods themselves or they will buy ready-
made goods.
 The planning should mainly focus on designing a strategy that yields maximum profit.
Develop a plan or strategy in order to address how the products and services will satisfy
the demands and necessities of the customers.

27. Cont’d..
• Develop or source
It includes the following activities;
Building a strong relationship with suppliers of the raw materials required for production.
create the metrics for controlling and improving the relationships
Planning methods for shipping, delivery, and payment of the product
 Supply chain managers need to construct a set of pricing, delivery and payment processes
with suppliers
 Sourcing - can be cost saving to the organization, if well thought out.
It necessitates choosing the right vendor offering the ideal price and who has the capacity
to deliver required volumes in a timely fashion

28. Cont’d..
3.Make
Manufacturing or making of products that were demanded by the customer.
In this stage, the products are designed, produced, tested, packaged, and synchronized
for delivery.
most metric-intensive unit of the supply chain, where firms can gauge the quality levels,
production output and worker productivity(quality and quantity)
4.Deliver
Products are delivered to the customer at the destined location by the supplier
 firms collaborate for the receipt of orders from customers, establish a network of
warehouses, pick carriers to deliver products to customers
set up an invoicing system to receive payments
Generally referred to as logistics

29. Cont’d..
5.Return
Defective or damaged goods are returned to the supplier by the customer.
 Here, the companies need to deal with customer queries and respond to their
complaints etc.
Note: Knowing these five components of supply chain management makes it possible
to develop effective strategies to manage your activities more efficiently.

30. Traditional Supply Chains
Key elements of traditional supply chains are:
Procurement of raw materials
Raw materials to manufacturing
Manufacturing
Distribution and shipping
Sale
Consumption
• Traditional supply chains and SCM focus only on production and provision, not
on customer needs.
• They also are not optimized and lack the “intelligence” to spot problems along
the value chain quickly

31. Drawbacks
• Limited visibility and lack of real-time data, which:
Complicates performance analysis and ability to identify gaps
Reduces accountability
Slows down and reduces the quality of decision-making
Impacts ROI
• Less agile and responsive to changing market conditions
• Higher cost of goods sold (COGS) and lower profits

32. Digital Supply Chains
• Digital supply chains are dynamic and able to adapt quickly to changing
circumstances (market disruptions, political turmoil, pandemics, etc.)
• They function in real-time and are highly agile “value networks” with
integrated systems and processes.
• Contextual, relevant, and timely data from information technology (IT)
and operational technology (OT) systems are integrated and readily
available to every process in the ecosystem.

33. Technologies employed in digital supply chain
• Cloud computing and software-
as-a-service (SaaS)
• Artificial intelligence (AI)
• Machine learning (ML)
• Natural language processing
(NLP)
• Big data
• Business intelligence
• Virtual reality and augmented
reality
• Robotics and robotic process
automation (RPA)
• Internet of things (IoT)

34. Cont’d..
The technologies above;
• offer automation and predictive analytics capabilities
• Improve time-to-market
• Anticipate and resolve problems quickly
• Shorten planning cycles
• Improve decision-making, and deliver value to all stakeholders.

35. Cont’d
• SMEs (small and medium sized enterprises) respond to the Competitive
and Technological Environment influences of the Information Age
• Intranets and Extranets are increasingly being used with SMEs as they
appreciate the cost savings and greater efficiencies.
• companies develop B2B e-commerce and e-business situations with
suppliers and business partners

36. Benefits of SCM
• SCM integrates materials, product development, finance, facilities, technology,
third parties, and even customers into a seamless system that is centrally
managed and controlled.
• Effective SCM enables organizations to:
Accelerate time-to-market
Cut costs and improve profit margins
Improve product and service quality
Reduce the risks of recalls and lawsuits
Improve customer experience and satisfaction
Build a strong brand
Improve relationships with all stakeholders, including third parties and customers

37. Elements of Supply-Chain Management
• Planning Systems
• Execution Systems
• Performance Measurement Systems
• Integrating Functions in a Supply Chain

38. Cont’d..
• Planning Systems
• means having the right product at the right place at the right time
• requires being able to obtain good "order information" from the customer
• POS - Point of Sale data gathered at the retail terminal is part of this
• Demand Forecasting
• Makes the organization more competitive in supplying things 'faster'
• customer demand triggers order movement up the supply chain to the raw material
supplier

39. Cont’d..
• Execution Systems
• facilitate the physical movement of goods and services through the supply
chain
• focus on operational efficiency
entails finding new ways to streamline day2day operations
reduce costs
improve productivity
• need for cross functional integration
• execution systems are basically enablers for doing things the right way.

40. Cont’d..
Performance Measurement Systems
• Keeps track of how things are going well, or poorly
• Necessary to evaluate good and bad results in a specific way to allow making
changes.
• Accomplishment of objectives done by considering the sales made. This is done by
use of some specific accounting or financial software package that gives
performance numbers

41. Cont’d
• Integrating Functions in a Supply Chain
• The key thing about integrating is getting all the key functions to work
together.
• These functions are;
Managing Information about demand
Managing the flow of physical goods
Managing the manufacturing process
Managing the money