This document discusses the role of information technology in supply chain management. It begins with definitions of supply chain management and describes how IT integrates and coordinates supply chains to increase productivity while reducing costs. It then explains the functional roles of IT in transaction execution and collaboration. The document outlines some key software used in supply chain management, like Enterprise Resource Planning and Electronic Data Interchange. It presents a supply chain IT framework and discusses risk management. In closing, it predicts future trends in IT's role in supply chains.

1. INFORMATION TECHNOLOGY
IN SUPPLY CHAIN
MANAGEMENT
NAME : YASH RAJ
CLASS : MECHANICAL-A
REGISTRATION NUMBER :
RA1911002010053
FACULTY NAME : MR.N.KARTHIKEYAN (101656)

2. CONTENT
S
• What is Supply Chain Management
Page No. 1
• Role of I.T. in Supply Chain Management
Page No. 2
• Functional Role of I.T. in Supply Chain Management
Page No. 4
• Software for Supply Chain Management
Page No. 5
• Supply Chain I.T. Framework
Page No. 7
• Risk Management and Macro Process in I.T.

3. WHAT IS SUPPLY CHAIN MANAGEMENT
IT IS A NETWORK OF FACILITIES AND DISTRIBUTION OPTIONS THAT PERFORMS THREE
TASKS. ONE IS PROCUREMENT, SECOND IS MANUFACTURING OR TRANSFORMATION OF
THESE MATERIALS INTO PRODUCTS, AND THIRD IS DISTRIBUTION, WHICH IS TO DELIVER
THE MANUFACTURED PRODUCTS TO THE ULTIMATE OR END CUSTOMER. THIS IS THE
DEFINITION GIVEN BY LEE AND BILLINGTON.
REFERS TO THE ENTIRE PROCESS OF MAKING AND SELLING GOODS, FROM THE SUPPLY OF RAW
MATERIALS AND USING THEM TO MANUFACTURE PRODUCTS TO THE DISTRIBUTION AND SALE TO
CONSUMERS. IT IS A NETWORK OF COMPANIES, INCLUDING SUPPLIERS,
MANUFACTURERS, SHIPPERS, DISTRIBUTORS AND RETAILERS, WORKING TOGETHER TO MAKE STUFF
LIKE LOGISTICS, INVENTORY MANAGEMENT, TRANSPORTATION AND SO FORTH GO AS SMOOTHLYAS
POSSIBLE.
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4. ROLE OF I.T. IN SUPPLY CHAIN
MANAGEMENT
1. INTEGRATED AND COORDINATED SUPPLY CHAIN
A SUPPLY CHAIN CAN ONLY WORK EFFICIENTLY WHEN IT IS PROPERLY INTEGRATED AND WELL-
COORDINATED. IT PERFORMS THIS CRUCIAL TASK BY BRINGING IN MULTIPLE TECHNOLOGIES AND
COMBINING THEM TO OPTIMISE THE SUPPLY CHAIN. THESE TECHNOLOGIES MAKE DATA COLLECTION
POSSIBLE AND MUCH EASIER AND MORE ACCURATE. IN TURN, THIS ALLOWS PRECISE AND DETAILED
DATAANALYSIS LEADING TO SOUND BUSINESS DECISIONS.
2. INCREASED PRODUCTIVITY
SMOOTH FLOW OF INFORMATION, NEW TECHNOLOGIES AND EFFECTIVE COMMUNICATION INCREASE
THE PRODUCTIVITY OF ALL ENTITIES IN THE SUPPLY CHAIN. IT IS LIKE A TRIGGER FOR PRODUCT
MOVEMENT. INSTEAD OF GOING BACK AND FORTH, IT PROVIDES THE LINK THAT PASSES THE NEEDED
INFORMATION CONTINUOUSLY.
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5. 3. COST REDUCTION
IT PERMITS OPTIMUM UTILIZATION OF RESOURCES AND ASSETS. OLD DATA IS USED
TRENDS, AND TECHNOLOGY IS USED TO ANALYSE IT FOR IMPROVING PERFORMANCE.
RESOURCES ARE USED OPTIMALLY, THEY RESULT IN COST REDUCTION. IN A SUPPLY
OF IT BECOMES MORE PROMINENT BECAUSE IT MOTIVATES ALL PARTIES TO USE THEIR
RESOURCES IN THE MOST COST-EFFICIENT MANNER. WHEN IT IS USED AS IT SHOULD
DRAMATIC FALL IN OVERALL EXPENSES.
4. PRODUCT IMPROVEMENT
IT CONSISTS OF TOOLS AND APPLICATIONS WHICH CAN BE USED TO GAIN EARLY
WHERE CONSUMERS ALWAYS WANT SOMETHING NEW, THE PRODUCT WILL EITHER HAVE TO
WILL GO OUT OF DEMAND. TO STAY IN BUSINESS, YOU MUST INTRODUCE PRODUCT
INNOVATION SOONER RATHER THAN LATER. THE KIND AND EXTENT OF PRODUCT
VALIDATED WITH THE HELP OF IT.

6. THE FUNCTIONAL ROLES OF I.T. IN SUPPLY CHAIN
MANAGEMENT
1. TRANSACTION EXECUTION
WHEN INFORMATION FLOWS EFFICIENTLY BETWEEN THE PARTICIPANTS OF THE SUPPLY
CHAIN, THE NUMBER OF TRANSACTIONS BETWEEN THEM IS REDUCED. IT INCREASES THE
EFFICIENCY OF REPETITIVE DATA EXCHANGES. THIS DATA IS USUALLY APPROPRIATE FOR
DELIVERY VERIFICATION, ORDER PROCESSING, BILLING, AND DISPATCH ADVICE.
2. COLLABORATION AND COORDINATION
IT RENDERS THE FLOW OF INFORMATION. THIS MAKES FOR EASIER PLANNING,
COORDINATION AND IMPROVED COLLABORATION BETWEEN ALL PARTICIPANTS. DEMAND
FORECASTS MAKE IT POSSIBLE TO PLAN FOR THE FUTURE, AND ORDER TRACKING MAKES
KNOWING THE PHYSICAL LOCATION OF EACH ORDER A REALITY. NEITHER OF THESE
ACTIVITIES IS POSSIBLE WITHOUT IT.
.
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7. SOFTWARE FOR SUPPLY CHAIN MANAGEMENT
1. ENTERPRISE RESOURCE PLANNING
MATERIALS REQUIREMENT PLANNING, WHICH WAS EARLIER USED TO DISTRIBUTE RESOURCES FOR A
MANUFACTURING OPERATION, RESULTED IN ENTERPRISE RESOURCE PLANNING (ERP), A SYSTEM THAT LINKS
INDIVIDUAL IT APPLICATIONS INTO A SINGLE ONE. THIS RESULTS IN THE INTEGRATION OF THE DATAAND THE
PROCESSES OF THE COMPLETE BUSINESS. WHEN ALL OPERATIONS ARE CONSOLIDATED, INFORMATION RELATED
TO CASH FLOW AND MATERIAL FLOW STARTS MAKING MORE SENSE. ERP HAS NOW BECOME THE BACKBONE OF
THE SUPPLY CHAIN AND PROVIDES AN INTEGRATED VIEW OF THE ORGANIZATION AS A WHOLE. TODAY, ERP HAS
ALSO LED TO THE AUTOMATION OF MANY FUNCTIONS SO THAT THERE IS MINIMAL HUMAN INTERVENTION.
2. ELECTRONIC DATA INTERCHANGE
ELECTRONIC DATA INTERCHANGE (EDI) IS THE EXCHANGE OF BUSINESS DATA FROM ONE COMPUTER TO ANOTHER.
IT IS USUALLY DONE IN A STANDARD FORMAT SO THAT ALL CONCERNED PARTIES CAN USE IT ACCORDING TO THEIR
NEED WITHOUT HAVING TO CONSTANTLY ASK FOR IT. EDI ALLOWS COMPANIES, ACROSS THE INDUSTRY, TO
COMMUNICATE WITH ONE ANOTHER. EVERYONE WHO USES EDI FOLLOWS THE SAME RULES AND METHODS. THIS
MAKES FOR EFFICIENT INVENTORY MANAGEMENT, BETTER BUSINESS RELATIONSHIPS, AND IMPROVED CUSTOMER
SERVICE.
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8. 3. SUPPLY CHAIN MANAGEMENT SYSTEMS
AN IDEAL SUPPLY CHAIN MANAGEMENT SYSTEM WILL HELP IN PLANNING, SELECTING
MANUFACTURING, LOGISTICS, AND BUILDING THE CUSTOMER RELATIONSHIP. TO
NECESSARY ASSISTANCE SUPPLY CHAIN PLANNING (SCP) SOFTWARE AND SUPPLY
(SCE) SOFTWARE ARE USED.
4. CUSTOMER RELATIONSHIP MANAGEMENT
CRM OR E-CRM USES IT TO ASSIST AN E-BUSINESS IN MANAGING ITS CUSTOMER
CUSTOMER NEEDS WITH THE PRODUCT PLANS TO INCREASE SALES.
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9. SUPPLY CHAIN I.T. FRAMEWORK
1. PROVIDES ACCESS AND REPORTING OF SUPPLY CHAIN TRANSACTION DATA.
2. ADVANCED SYSTEM LAYER A LEVEL OF ANALYTICS THAT USE TRANSACTION DATA TO
PROACTIVELY IMPROVE SUPPLY CHAIN PERFORMANCE.
3. ENTERPRIZE SOFTWARE FORMS THE FOUNDATION OF SUPPLY CHAIN INFORMATION
TECHNOLOGY SYSTEM.
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10. RISK MANAGEMENT AND MACRO PROCESS
IN I.T.
THE SUPPLY CHAIN MACRO PROCESSES
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
INTERNAL SUPPLY CHAIN MANAGEMENT (ISCM)
SUPPLIER RELATIONSHIP MANAGEMENT (SRM)
REST ON TRANSACTION MANAGEMENT FOUNDATION (TMF), BASIC ENTERPRISE RESOURCE
RISK MANAGEMENT IN IT INSTALLING NEW SYSTEMS
REVISED BUSINESS PROCESSES
INTEGRATION PROBLEMS CAN SHUT DOWN THE BUSINESS
SOFTWARE GLITCHES
POWER OUTAGES
VIRUSES

11. THE FUTURE OF I.T. IN THE SUPPLY CHAIN
THE THREE SCM MACRO PROCESSES WILL CONTINUE TO DRIVE THE EVOLUTION OF
ENTERPRISE SOFTWARE
THREE IMPORTANT TRENDS
1) THE GROWTH IN SOFTWARE AS A SERVICE (SAAS)
2) INCREASED AVAILABILITY OF REAL-TIME DATA
3) INCREASED USE OF MOBILE TECHNOLOGY
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12. THANK YOU