The document discusses the role of information technology in supply chain management. It describes how electronic commerce, e-procurement tools, e-markets, and enterprise resource planning systems can increase efficiency in supply chain operations through improved information sharing and reduced transaction costs. These technologies allow companies to better coordinate activities, improve customer service, and gain a competitive advantage in supply chain management.

1. Supply Chain
Management

2. Role of Information
Technology in
Supply Chain
Management

3. INTRODUCTION
• Supply chain management (SCM) is concerned
with the flow of products and information
between supply chain members' organizations.
• Recent development in technologies are helpful
to coordinates the activities to manage the
supply chain. The cost of information is
decreased due to the increasing rate of
technologies.

4. ELECTRONIC COMMERCE
 Electronic commerce, commonly known as e-
commerce refers to the buying and selling of
products or services over electronic systems
such as the Internet and other computer
networks
 It also includes the entire online process of
developing, marketing, selling, delivering, servi
cing and paying for products and services.
 The amount of trade conducted electronically
has grown extraordinarily with widespread
Internet usage

6. E-COMMERCE IN SUPPLY CHAIN
•Increases the efficiency in operations
•Better customer service
•Quick process to information.
•Better customer service.
•Reduced paper work.
•Increased productivity
•Cost efficiency.
•Competitive advantage.

7. Cont:
• Information Sharing, Convenience, And Control
• Higher Margins
• Quick Comparison Shopping
• Information Sharing, Convenience, And Control

8. Business Model
The plan implemented by a company to generate
revenue and make a profit from operations. The
model includes the components and functions of
the business, as well as the revenues it generates
and the expenses it incurs.

9. Business To Business - B To B
• What Does Business To Business - B To B
Mean?
Business conducted between companies, rather
than between a company and individual
consumers.
• Business To Business - B To B
An example of a B2B company is a firm that
makes parts that are sold directly to an
automobile manufacturer.

10. Business To Consumer - B To C
• What Does Business To Consumer - B To C
Mean?
Business conducted between companies and
individual consumers, rather than between two
companies.
• Business To Consumer - B To C
A retailer like Wal-Mart is an example of a B to C
company

11. Customer To Customer - C To C
• What Does Customer To Customer - C To C Mean?
A type of business model that facilitates interaction between
customers. Customer to customer businesses provide
individuals with a place to converse, exchange and interact
with other people.
• Customer To Customer - C To C
Many C2C businesses have online operations. Online auctions
and classifieds such as e-bay are examples of very successful
customer to customer business models. These sites don't look
to directly sell goods to their members, instead the customers
are exchanging with other customers.

12. Enterprise resource planning (ERP)
Enterprise Resource Planning (ERP) is a
system which brings all the decision making
information from all the departments in a
company into one single place in order to
increase efficiency, productivity and profit of
the company.

13. FEATURES
• Integrates internal and external management
information across an entire organization
• Facilitates the flow of information between all
business functions inside the boundaries of the
organization and manage the connections to
outside
• It involves finance, manufacturing, sales and
service, customer relationship management, etc

14. Cont:
• It is an integrated system that operates in real
time (or next to real time), without relying on
periodic updates.
• A common database, which supports all
applications.

15. E-Procurement
E-procurement is the business-to-business
purchase and sale of supplies and services over
the Internet.
This includes management of
correspondence, bids, questions and
answers, previous pricing, and multiple emails
sent to multiple participants.
E-Procurement helps to reduce the transactional
costs, achieving faster & automated
transactions, helps the buyer to focus more on
strategic part of procurement.

16. Online Sourcing/ Procurement Process

18. E-Procurement Tools
E-Catalogues
In normal case of business scenario, supplier
visits end users and buyers and provide their
product information through Product
catalogues. These catalogues normally contain
product specifications, rates, validity of
rates, discounts, minimum order quantity etc.

19. E-Marketplaces
This is the single point entry meeting place for buyers
and suppliers. Here buyers post their requirements
and suppliers can quote against the requirements
posted by the buyers. Features of a e-marketplace can
vary from plain transactional trading to enabling
suppliers and buyers to collaborate in the areas of
supply chain planning, product designing &
development, knowledge sharing.

20. E-Reverse Auctions
English Reverse Auctions
In this type of reverse auction buyer opens the auction
with the price of the item and seeks lower bid. Bidders
outbid each other by placing lower bids.
The auction ends when no body is able to quote lesser
than the lowest quote. It is time bound bidding.
The buyer may reserve the price above which he is not
willing to pay. In case of winner of the bid is not able to
supply the full quantity the buyer can go for second lowed
bidder to fulfill the quantity. Sometimes buyer may impose
the condition of supplying full quantity in the auction.

21. Now a days there is new focus on Request for Proposal
(RFP) and Request for information (RFI). So this area now
a days called e-Sourcing or RFx Model.
Request for Quotation (RFQ)
is a request for supplier to quote for a particular product
or service. The buyer sets the requirements and
specifications in the document. The supplier has to quote
in the prescribed format specified by the buyer.
Request for Proposal (RFP)
is a request by a buyer for supplier for submitting the
proposal. RFP asks suppliers to propose how they would
meet the buyer’s product or service need. This approach
is largely used when the supplier is having greater
expertise than buyer.

22. Request for Information (RFI)
implies that there is no commitment from either side.
Buyer asks for the information from supplier and
evaluate whether they might go for particular service
or job with a particular supplier.
Self Service Procurement:
Self service procurement passes on the procurement
jobs to end users. Materials procured under self service
are normally non strategic, under contract and with
fixed pre negotiated prices. Self service procurement
frees the buyer from transaction procurement and
helps him to focus on strategic procurement.

23. Benefits
Improved Process efficiencies
Manual procurement is labour intensive and time
consuming process. Switching to e-procurement
helps companies to reduce employees’ cost, paper
and redundancy and cycle times
Reduction in errors
Manual processes are always prone to errors. In
manual processes as and when the information is
transferred at many occasions it is re-written or re-
typed at various stages

24. Auction pay online is the best way to
increasing the value of an item in non
natural but against the market trend.
Open (little or no Private (few bidders)
restriction)

25. Suppliers log onto Can place multiple Goods
the website via a bids for the same delivered
password product according
protected access during an event To bidder
screens convenience

26. Benefits of E-Auctions
 Opportunities to find unique items and
collectibles
 Lower prices
 Secure bidding environment
 Bidders can be monitored
Time benefits: reduction in postage,
paperwork, photocopying
 Convenience
 Identities of bidders are usually hidden

27. Limitations of E-Auctions
Possibility of fraud
Limited participation
Security
Auction software
Long cycle time
Monitoring time
Equipment for buyers
Order fulfillment costs

28. The Largest Global Shopping Portal in the
World
Started with online books.
Started with online user auctions.
Started with a search engine.
Started with a search engine.

29. ELECTRONIC MARKETS
E-marketplaces are emerging to serve each
point of every industry's supply chain
E-markets are highly collaborative E-Business
models that organize complex business
processes between multiple participants into a
virtual commerce community

30. E-MARKETPLACES : VALUE CREATION
efficient transactional processes
new business relationships
new business models
new businesses

31. E-MARKETPLACES: CATEGORIES
Horizontal
Vertical
Private (sell side, buy side)
Public

32. BENEFITS TO BUSINESSES
Extend the presence and reach of a company
Facilitate doing business with
anyone, anytime, anywhere
Aggregation of content and facilitation of workflow
lead to significant reduction in transaction costs
Cycle times are reduced and deliveries are quicker
Improves relationship with trading partners
Market efficiencies
Better inventory management
Better visibility leading to predictability

33. BENEFITS TO BUYERS
 Aggregation of multiple suppliers
 Direct access to suppliers and through dynamic
pricing
 Location and tracking of new suppliers
 Provides more negotiating power
 Leads to quick response buyers

34. BENEFITS TO SUPPLIERS
Provides reach to vast, untapped global markets
True value of products can be realized through
aggregation and participation of buyers
Enables to support JIT practices
Leads to quick response suppliers

35. E-MARKETS: DESIGN ISSUES
NEGOTIATIONS
Distributed Negotiations
Integrative Negotiations
Auctions
DESIGN OF USER INTERFACES

36. Business objects in SCM
The Business Objects Supply Chain Management application
provides visibility into performance across the supply chain that
can help you measurably improve the effectiveness of your
supply chain operations and better deliver on corporate
mandates, such as lowering costs and improving return on
working capital. Business Objects will give an
integrated, dynamic view of our sales, supply chain, and
customers.

37. Business Objects benefits
We can evaluate, monitor, and improve our supply
chain performance and efficiency.
 Help to gain visibility over constantly changing operations as
we continuously plan sourcing, manufacturing, delivery, and
returns.
 It will provide you with hundreds of prebuilt analytics that can
answer thousands of key business questions and help to gain
deeper business insight.

38.  Quickly gain deeper business insight
 Gain industry best practices
 Standardize on terminology and data
 Minimize risk and speed your implementation

39. Importance of business objects
The Best Choice on the Market Today
The Business Objects suite of enterprise analytic
applications is the most comprehensive
Product offering on the market today. With insightful
analytics, an unparalleled framework
Supporting customized development, and an
integrated data warehouse, Business Objects
Provides your organization with the insight you
need to extend your competitive advantage

40. E logistics :
Internet Impact to Logistics
management

41. WHAT IS E-LOGISTICS?
E logistics = information liquidity
The ability to acquire and use information when it is
needed, what is needed, and in an appropriate context.
• Assessable
• Meaningful
• Timely
• Complete

42. E LOGISTICS PLAYERS
 Players in space-examples
Manugistics, Manhattan Associates, EXE technologies(SSA
Global), Descartes, SAP etc.
 Strengths
Domain knowledge, proven solution components, customer
base, critical mass, existing partnership
 Weaknesses
Old tech infrastructure

44. DRIVERS IN THE LOGISTICS
INDUSTRY
Global sourcing and distribution
Industry segmentation
Increasingly IT driven
Growing acceptance of outsourcing logistics
Market leaders continuously raising the bar: space
management, inventory
management, JIT, continuous replenishment
program(CRP), vendor partnership, VMI etc.

46. E LOGISTICS SERVICES
Freight exchange/auction
Purchasing portal
Automated billing and settlement
Lane optimization
Documentation
Automated booking
Service failure notification and resolution
Automated tracking and tracing

47. International trade compliance and landed cost
Product development collaboration
Pricing, revenue and profitability management
E marketing
E fulfillment
Data mining(performance management)

48. E LOGISTICS-VALUE PROPOSITION
Logistics exchanges will bring price efficiency
to the most segmented market
Load matching and other optimization tools
will improve asset utilization
E logistics will greatly improve the industry’s
information liquidity

49. Collaborative product development and revenue
management tools will allow business to improve
its return on investment
Integrated supply chain execution and collaboration
tools will dramatically reduce business interaction
costs and achieve a learner, quicker and more
reliable supply chain

50. BENEFITS OF E LOGISTICS
 Business benefits
- On-time delivery and fulfillment, lead time reduction
- Customer service improvements, increased
collaboration and coordination
- Increased sales
 IT benefits
- Reduces time for data entry, management and
integration
- Plug and play, easy integration with existing and third-
party systems
- Transaction processing and monitoring

51.  Network effect benefits
- Lower transportation cost, improved capacity
utilization
- Flexible and responsive supply chains(co-
mingling, merge-in-transit)
- Single point of connection for participants

52. Any
Questions …???