The group presentation summarizes the topic "Role of Supply Chain in IT". The presentation was given by group leader Shakeel Abbas to the MBA-II evening class on December 19, 2019. The 4-member group discussed how information technology tools are used throughout the supply chain to gather and analyze information. They explained key aspects of using IT in supply chain management including objectives, frameworks, processes, and future trends. The group highlighted benefits of IT including improved efficiency, collaboration, and decision making based on total supply chain visibility.

2. Group Presentation
Members 4
Group leader Shakeel Abbas
Class MBA-II (Evening)
Date 19-12- 2019
Professor Mrs. Wardha Ghafoor

3. Group Members
Shakeel Abbas
Arbaz Muhammad
Zeeshan
Hannan Ali

4. Topic : Role of Supply Chain in IT
 Introduction
 Characteristics of Useful
Supply Chain Information
 Use of Information in a Supply Chain
 Information Technology in a Supply Chain
 Objectives of IT in SCM
 Need of IT
 The Importance of Information
in a Supply Chain
 The Supply Chain IT Framework
Outline

5. Outline (Cont.)
 Supply Chain Macro Processes
 Customer Relationship Management (CRM)
 Internal Supply Chain Management (ISCM)
 Supplier Relationship Management (SRM)
 Transaction Management Foundation (TMF)
 Network Infrastructure
 Internet
 Why Focus on the Macro Processes?
 Risk Management in IT
 The Future of IT in the Supply Chain
 Important trends that will affect IT in the
supply chain
 Supply Chain Information Technology in Practice
 The Use & Benefits of IT

6. Shakeel Abbas

7. Introduction
 Information is a key supply chain driver because it serves as the
glue that allows the other supply chain drivers to work together
with the goal of creating an integrated, coordinated supply chain.
 Information is crucial to the performance of supply chain because
it provides the basis on which supply chain managers make
decisions.
 Information Technology consists of the tools used to gain
awareness of information, analyze the information and execute on
it to increase the performance of the supply chain.

8. Characteristics of Useful
Supply Chain Information
Accurate
Accessible in a timely manner
It must be of the right kind
Provides supply chain visibility
It must be shared

9. Use of Information in a Supply Chain
 Inventory: demand patterns, carrying costs, stockout costs,
ordering costs
 Transportation: costs, customer locations, shipment sizes
 Facility: location, capacity, schedules of a facility need
information about trade-offs between flexibility and efficiency,
demand, exchange rates, taxes, etc.
 Sourcing: product margins, prices, quality, delivery lead times etc
 Pricing and Revenue Management: Pricing policies, product
margin, lead time, and availability

10. Use of Information in a Supply Chain
(Cont.)
 Information used at all phases of decision
making: strategy, planning & operations
Examples:
Strategic: location decisions
Operational: what products will be
produced during today’s production run

11. Hannan Ali

12. Information Technology in a Supply Chain
 Information technology (IT)
Hardware and software used throughout the supply
chain to gather and analyze information
Captures and delivers information needed to make
good decisions
 Effective use of IT in the supply chain can have a
significant impact on supply chain performance

13. Objectives of IT in SCM
Providing information, Availability &
Visibility.
Enabling single point of contact of data.
Allowing decisions based on total supply
chain information.
Enabling collaboration with supply chain
partners.

14. Need of IT
Less capital intensive
Environmental friendly and clean
Not location specific (can be undertaken
from anywhere)
Does not require expensive infrastructure
facilities

15. The Importance of Information
in a Supply Chain
 Relevant information available throughout the
supply chain allows managers to make decisions
that take into account all stages of the supply
chain
 Allows performance to be optimized for the
entire supply chain, not just for one stage – leads
to higher performance for each individual firm in
the supply chain

16. The Use & Benefits of IT
 Successful companies have developed focused E-business
solutions for improving customer service elements that are most
important in their business.
 Improved efficiency allows company personnel's to focus more
on the critical business activities.
 E-business solutions support planning collaboration & improved
agility of the supply network.
 The use of E-business solutions improve the information quality.
 To gain strategic benefits, the use of IT has to be coupled with
process re-design.

17. Arbaz Muhammad

18. The Supply Chain IT Framework
 The Supply Chain Macro Processes
 Customer Relationship Management (CRM)
 Internal Supply Chain Management (ISCM)
 Supplier Relationship Management (SRM)
 Transaction Management Foundation (TMF)
Why Focus on the Macro Processes?

19. Supply Chain Macro Processes
Supplier
Relationship
Management
(SRM)
Internal
Supply Chain
Management
(ISCM)
Customer
Relationship
Management
(CRM)
Transaction Management Foundation (TMF)

20. Customer Relationship Management
 The processes that take place between an enterprise and
its customers downstream in the supply chain
 Key processes:
Marketing
Selling
Order management
Call/Service center

21. Internal Supply Chain Management
 Includes all processes involved in planning for and fulfilling a
customer order
 ISCM processes:
 Strategic Planning
 Demand Planning
 Supply Planning
 Fulfillment
 Field Service
 There must be strong integration between the ISCM and CRM
macro processes

22. Supplier Relationship Management
 Those processes focused on the interaction between the enterprise
and suppliers that are upstream in the supply chain
 Key processes:
 Design Collaboration
 Source
 Negotiate
 Buy
 Supply Collaboration
 SRM processes must be well integrated with appropriate CRM
and ISCM processes for significant improvement in supply chain
performance

23. The Transaction Management Foundation
 It is the historical home of the largest enterprise
software players
 Earlier systems focused on automation of simple
transactions and the creation of an integrated method of
storing and viewing data across the enterprise
 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

24. Network Infrastructure
Internet
 Internet has a profound impact on SCM. The backbone
of SCM is communication & real-time information
exchange between various parties involved in the
production & distribution of materials.

25. Network Infrastructure (Cont.)
 Following are the various SCM activities that have created new Internet
opportunities:-
 Online Vendor Catalogue (without human contact).
 The ability to schedule outbound logistics.
 Provide world wide customer service (24X7).
 Receive orders from all over the world all the time.
 Place bids on projects.
 Pay invoices electronically.
 The ability to directly communicate.
 The ability to be more responsive to customer service problems.
 To reduce service costs & response time.

26. Zeeshan

27. Risk Management in IT
 Several risks are associated with the use of IT in the supply chain
 The larger the change in the IT system, the greater is the risk of a
negative impact on operations
 Major Risks
 Installing new IT systems (transition from the old processes to
the new processes in its IT system)
 The more a firm relies on IT to make decisions and execute
processes, the higher is the risk that any sort of IT problem,
ranging from software glitches to power outages to viruses,
can completely shut down a firm’s operations

28. The Future of IT in the Supply Chain
 At the highest level, the three SCM macro processes
will continue to drive the evolution of enterprise
software
 Software focused on the macro processes will become a
larger share of the total enterprise software market and
the firms producing this software will become more
successful
 Functionality, the ability to integrate across macro
processes, and the strength of their ecosystems, will be
keys to success

29. Important trends that will affect IT in the
supply chain
The growth in cloud and software as a
service (SaaS)
Increased availability of real-time data
Increased use of mobile technology
Increased use of social media

30. Supply Chain Information Technology in
Practice
 Select an IT system that addresses the company’s key
success factors
 Take incremental steps and measure value
 Align the level of sophistication with the need for
sophistication
 Use IT systems to support decision making, not to make
decisions
 Think about the future

31. Thank You!