Importance of it in supply chain management

1. Importance of IT in
Supply chain
management
To sustain in highly competitive marketplace.1
To innovate new ways to streamline to seamless
supply and optimize productivity.2
Better visibility within the supply chain
To enable more control over the business and stay ahead
of the competition
To simplify the supply chain management, which will
enable your business to operate more efficiently
To reduce your operational costs
3
4
6
5

2. Role of information
technology in supply chain
Information is the driver that
serves as the “glue” to create
a coordinated supply chain
1.Accurate
2.Accessible in a timely
manner
3. Information must be
of the right kind
Information must have
the following
characteristics

3. Information provides
the basis for supply
chain management
decisions
Inventory
Facility
Transportation
Sourcing
Pricing

4. The Supply Chain Macro Process
Customer
Relationship
Management
Internal Supply
Chain
Management
Supplier
Relationship
Management

5. Why Focus on the Macro Processes?
Good supply chain management is not a zero-sum
game
Good supply chain management instead attempts
to grow the supply chain surplus
A good supply chain coordinates all the macro
processes across all stages.

6. Customer relationship management
The CRM macro process consists
of processes that take place
between an enterprise and its
customers downstream in the
supply chain.

7. The goal of CRM macro process
To generate customer demand
To facilitate transmission
To track order
1
2
3

8. The key processes of CRM
Marketing Sell
Order
Management
Call
Centre

9. Interanl Supply Chain Management
Internal supply chain management
includes all processes involved in
planning for and fulfilling a customer
order.

10. The various processes included in ISCM
Strategic Planning
Demand Planning
Supply Planning
Fulfilment
Field Service

11. Supplier Relationship Management
Those processes focused on
the interaction between the
enterprise and suppliers that
are upstream in the supply
chain

12. Key Processes of SRM
Design
Collaborat
ion
Buy
Source
Supply
Collaborat
ion
Negotiate
2
1
3
4
5

13. The Transaction Management
Foundation
1
2
3
Early ERP systems focused on
transaction management and process
automation
Real value of the TMF exists only if
decision making is improved
The extent to which the TMF enables
integration across the three macro
processes determines its value

14. Supply chain visibility,
coordinated planning,
forecasting and replenishment,
collaborative product
development, coordinated
logistics, coordinated
promotions
SRM ISCM CRM
Supplier Our Company Customer
Coordination
SILOS

15. The future of IT in the supply chain
The growth in software as a service (SaaS)1
Increased availability of real time data
Increased use of mobile technology
2
3

16. SaaS is define as software that is
owned, delivered and managed
remotely.
The availability of real time
information has exploded in most
supply chain.
The increased use of mobile
technology coupled with real time
information.

17. Major areas of Risk in IT
1.Installing new IT
system
2.Problem can shut
down the business
1.Installing new IT
system

18. Risk Management in IT
1
2
Revised business
processes
Integration

19. Power outages Viruses
Software
glitches
Problems can shut down the business

20. Mitigating strategies
Install new IT systems in an incremental
fashion
Run duplicate systems to make sure the
new system is performing well
Implement only the level of complexity
that is needed

21. Supply Chain IT in Practice
Selection of an IT that addresses company’s key
success factors
Taking incremental steps and measuring value
Aligning the level of sophistication with the need
for sophistication

22. Using IT system to support decision making,
not to make decisions
Think about the future