IT & SCM BY Zaki from Ajay Kumar Garg Institue Of Management

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Role of IT in SCM

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IT & SCM BY Zaki from Ajay Kumar Garg Institue Of Management

  1. 1. INFORMATION TECHNOLOGY (IT) & SCM SUBMITTED BY:- MOHAMMAD ZAKI(PGDM-08/30) KRITIKA CHATURVEDI(PGDM-08/22) NITESH PRATAP SINGH(PGDM-08/38) MAYANK ROHELLA(PGDM-08/27)
  2. 2. INTRODUCTION <ul><li>The world today has become extremely competitive. Business in the information age must accept these changes and be ready to be more competitive and customer oriented. There is a global competition and everyone want the detailed information about product and services. In such a situation, companies are facing problems in producing a superior product using the fewer resources at hand and information is becoming critical for management decision making. The answer to all these problem lies in using information technology effectively and intelligently. </li></ul><ul><li>IT has helped in facilitating the companies to respond to these problems efficiently. There is no dearth of performance telecommunication technologies that can perform real-time operation, computer integrated manufacturing and efficient management of information. </li></ul>
  3. 3. OBJECTIVES <ul><li>The Supply Chain </li></ul><ul><li>Components and types of supply chain </li></ul><ul><li>Important Decisions in supply chain </li></ul><ul><li>Benefits of supply chain </li></ul><ul><li>Define the problems in managing supply chain </li></ul><ul><li>Describe major problems and their IT solutions </li></ul><ul><li>Software packages from SAP & Microsoft </li></ul><ul><li>Impact of IT on SCM </li></ul>
  4. 4. SUPPLY CHAIN MANAGEMENT <ul><li>  Supply chain management is a term that has emerged in recent years that captures the essence of integrated logistics and even goes beyond it. SCM emphasizes the logistics interactions that take place among the functions of marketing, logistics and production within a firm and those interactions that take place between the legally separate firms within the product flow channel </li></ul><ul><li>Supply chains encompass the companies and the business activities needed to design, make, deliver, and use a product or service. </li></ul>
  5. 5. COMPONENT OF SUPPLY CHAIN
  6. 6. TYPES OF SCM
  7. 7. IMPORTANT DECISION IN SCM <ul><li>Production -What products does the market want? How much of which products should be produced and by when? </li></ul><ul><li>Inventory -What inventory should be stocked at each stage in a supply chain? How much inventory should be held as raw materials, semi finished, or finished goods? </li></ul><ul><li>Location -Where should facilities for production and inventory storage be located? Where are the most cost efficient locations for production and for storage of inventory? </li></ul><ul><li>Transportation -How should inventory be moved from one supply chain location to another? </li></ul><ul><li>Information -How much data should be collected and how much information should be shared? </li></ul>
  8. 8. BENEFITS OF SUPPLY CHAIN MANAGEMENT <ul><li>Supply chain management bridges the gaps between suppliers and customers. </li></ul><ul><li>  </li></ul><ul><li>It allows businesses to conduct operations at an appropriate time and place for the benefits of suppliers and customers. </li></ul><ul><li>  </li></ul><ul><li>Due to it, wholesalers get the best prices from manufacturers, retailers get the best prices from wholesalers and the lead time is reduced. </li></ul><ul><li>  </li></ul><ul><li>Retailers get a choice of goods and can also offer good services to customers. </li></ul><ul><li>  </li></ul><ul><li>It makes movements simple, cost-effective and efficient as transport is simpler. </li></ul><ul><li>  </li></ul><ul><li>Expertise can be developed in a particular type of operation. </li></ul>
  9. 9. PROBLEM ALONG THE SCM <ul><li>Poor customer service- The customer does not get what he requires at right time or he receives it late, </li></ul><ul><li>High inventory costs- If a company has high inventory cost and no synchronization between stocks and demand, its product are bound to have higher costs. </li></ul><ul><li>  </li></ul><ul><li>Loss of revenues- A company has too many non-valued activities. </li></ul><ul><li>  </li></ul><ul><li>Extra cost of expediting shipments- If customer orders are not shipped at time or shipped using costly means, customer would be unhappy. </li></ul><ul><li>  </li></ul><ul><li>Bullwhip effect- If a company has erratic shifts in orders (Bullwhip effect). It is bound to face production and inventory problems. </li></ul><ul><li>  </li></ul><ul><li>Phantom stock outs- Customers are told that the product is out of stock but in reality it is available. </li></ul>
  10. 10. IT TOOLS SUPPLY CHAIN PROBLEM Artificial Neural Networks (ANN) --------------------------------------------- Electronic Data Interchange (EDI) --------------------------------------------- Electronic Document management Systems ------------------------------------------------ Genetic Algorithms ------------------------------------------------Intelligent Systems There is a need to derive Meanings from complicated and imprecise data .ANNs replace the need to build complex formulas manually. They can be also used to complete complex logistical challenges such as truck routing. --------------------------------------------- Show delivery of paper documents -------------------------------------------------- Repeated process activities due to wrong shipments, poor quality and accumulated work orders etc. ------------------------------------------------ Need for inventory optimizations and scheduling problems etc. ------------------------------------------------ Learn about delays after they occur or learn about then too late
  11. 11. CONT. The Internet And Internet 2 ------------------------------------------------ Intranets And Extranets ------------------------------------------------ JIT Systems ------------------------------------------------ Robotics ------------------------------------------------ Groupware Lack of information or flow is too slow, Redundancies in the supply chain, too many purchasing orders, too much handling and packaging. ------------------------------------------------ Waiting time between chain segments is excessive. ------------------------------------------------ High inventory costs and poor workflow due to improper scheduling. ------------------------------------------------ Delays in shipments from warehouses ------------------------------------------------ Waiting time between chain segments is excessive, poor coordination, cooperation and communication. Decline in the value of parts and components that stay too long in storage .
  12. 12. Various Software Packages-
  13. 13. Impact of IT on SCM Logistic Firm Vendor relationship management Procurement Operation Customer relationship management . Disciplined · Size of the firm · Location · Learning · Tight-Loose .Transportation .scheduling . Vehicle tracking · Fulfilling .Relationship · Trust · Information sharing · Long-term commitment .Order processing · Purchasing .Inventory management · Production scheduling

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