Information technology plays an important role in supply chain management by enabling information sharing and efficient coordination across organizations. IT allows gathering and evaluating large amounts of data to aid planning and decision making. It facilitates workflow coordination in real-time by enabling data synchronization between suppliers, stores, accounting departments and more. When implemented effectively, IT can provide competitive advantages like quick response, reduced costs and inventory, and improved customer satisfaction. The document discusses examples of how IT helps with material planning, procurement, receiving, reporting and equipment management in a healthcare supply chain.

1. ROLE OF INFORMATION TECHNOLOGY
IN
SUPPLY CHAIN MANAGEMENT

2. Group Members
a
b
c
Divya Nepal- 105
e
f
g

3. Objectives
To have a basic idea on Supply Chain
Management
Have an overview on how Information
Technology can aid Supply Chain
Management
See some examples of role of IT in efficient
Material Management

4. Supply Chain Management
■ The management of the flow of goods and services.
■ It includes the movement and storage of raw materials,
inventory, and finished goods from point of origin to point of
consumption.
■ GOAL of SCM
Get right Product, in right Place, of the right Quantity, right
Quality in right Price at the rightTime from the rightVendor.
Supply chain activities cover everything from product
development, sourcing, production, and logistics, as well as
the information systems needed to coordinate these activities.

5. ■ Every product that reaches an end user represents the cumulative effort of multiple organizations.
These organizations are referred to collectively as the supply chain.
■ The organizations that make up the supply chain are “linked” together through physical flows and
information flows.
Physical Flows: involve the transformation, movement, and storage of goods and materials.They are
the most visible piece of the supply chain.
Information Flows: allow the various supply chain partners to coordinate their plans and to control the
day-to-day flow of goods and materials up and down the supply chain.

6. Impact of IT in Supply Chain
Information sharing Gathering and
evaluating information
Workflow
Coordination
Competitive
Advantage
Quick response

7. Information Sharing
■ Information is the lifeline of business, driving effective decisions and actions.
■ Information Technology offers many opportunities for organizations to cut cost and improve
responsiveness to customer’s needs.
■ Information, along with materials and money, must readily flow across the supply chain to enable
the planning, execution, and evaluation of key functions.
■ Each participant in the supply chain needs relevant information to make effective forecasts and
operational decisions.
■ Supply chain information technologies support timely, cost-efficient sharing of information
between suppliers, manufacturers, intermediaries, logistics services providers, and customers.

8. Gathering and Evaluating Information
■ Use data forecasting tools to aid decision making based on scientific analysis of available and
relevant data.
■ View signals of market demands and plan accordingly.
■ Planning must span the entire supply chain to detect changes in demands.
■ Handle large volumes of data within seconds.
■ Compare sales information.
■ Generate report with click of a button.
■ Eliminate human errors.

9. Work-flow Coordination
Real-
time data
sync
Stores
Suppliers
Accounting
Departments
Reports
Inventory

10. Competitive Advantage
■ Enable collaboration with stakeholders
■ Strategic planning for deployment of resources
■ Reduce inventory and human resource requirement
■ Support different levels of decision making and provide a clear view of products, services and
information
■ Adopt performance evaluation measures that apply to every link in the supply chain and measure
true profitability at every stage

11. Quick Response
■ Real-time updates sent to all stakeholders
■ Automated supply orders
■ Order tracking and delivery coordination
■ Some of the areas where greater effect is felt are:
a) Communication
b) Selection of vendors or partners
c) Cost saving
d) Reduction of lead times
e) Improvement in product promotional activities

12. Role of IT in Material Management Activities
■ Material Planning
■ Procurement
■ Receiving
■ Reporting
■ Equipment Management

13. Material Planning
 Annual Forecasting
 Drug Formulary
 Vocabulary of Stores
 Standard Reference System

14. Annual Forecasting
■ Healthcare forecasting involves use of tools that, with the help of various algorithms predict future
health events and demands.
■ Healthcare forecasting tools help in analysing health status at the population level, determine effects
of interventions and make informed decisions.
■ Forecasting tools help to take appropriate actions to minimize risks and manage demand.
■ Forecasting tools help to make a perfect match of scheduling demands, organizational realignments,
distributions for funding and resources to fulfil the demand for service.

15. Drug Formulary
■ The main function of a prescription formulary is to specify particular cost effective medications that
are approved to be prescribed at a particular healthcare institution.
■ This is done to manage time as the updation and distribution of this information is extremely time
consuming and costly.
■ In a digitized formulary, all the hospital computers link into the system, and all doctors, nurses and
pharmacists have access.
■ This formulary would be easy to access as you would just have to type in the name of the drug and it
will show all information including its nature as generic or branded, along with other drugs which are
similar.

16. Standard Reference System (HIS)
■ Material planning through HIS would involve analysing requirement of drugs, dressing material
and equipment, preparation of material budget, forecasting of level of inventories, scheduling
orders.
■ This system, analyses the existing real demand for materials, with more frequent material
distribution,

17. Procurement
 Vendor Management
 RFP Management
 Bid Management
 Tender Analysis
 Service Contract Management
 Indent Management
 Automated Supply Order Generation

18. Receiving
 Computerized Shipping andTracking,
 Invoice Matching
 Voucher Generation
 Periodical Receipt Report
■ One example where IT can help in receiving:Transport Management System

19. Transport Management System
■ Transportation Management Systems provide more visibility into shipments and orders.
■ Scheduling issues are also addressed on time.
■ Multiple transportation options can be explored as a result of real-time visibility into the supply
chain.
■ Timely communication and status reports can also be obtained.
■ By having control on its supply chain, businesses can make efficient routing decisions

20. Reporting
Inventory Usage Analysis
■ It is a process of comprehending the mix of business products while being aware of the demand for
certain products.
■ It contributes to an Inventory Manager’s decision on what steps to take in protecting valuable assets.
■ R.O.L is the deciding factor of whether a company meets its money rules and if it is still worth continuing
its operations.
Reorder Points
■ It is a minimum amount of an item which a firm holds in stock, such that, when stock falls to this amount, the
item must be reordered.
■ It is normally calculated as the forecast usage during the replenishment lead time plus safety stock.
■ Reorder Point = Normal consumption during lead-time + Safety Stock.

21. Safety stock
■ It is used to describe a level of extra stock that is maintained to mitigate risk of stockouts caused by uncertainties
in supply and demand.
■ Adequate safety stock levels permit business operations to proceed according to their plans.
■ Safety stock is held when uncertainty exists in demand, supply, or manufacturing yield, and serves as an insurance
against stockouts.
Overstocking
■ It is the result of poor managementof stock demand or of material flow in process management.
■ Excessive stock can result from over delivery from a supplier or from poor ordering and management of stock by a
buyer for the stock.
Understocking
■ Having too little product on hand can have far-reaching consequences for the organization.
■ Failing to provide customers with their purchases in a timely manner may also tarnish org. overall reputation.

22. Equipment Management
 Utilization Report
 Serviceability Status Report
 Maintenance Schedule Report
■ Use coefficient calculated for each day
■ Any fluctuations in the system is recorded and can be checked in time
■ Regular monitoring of the equipment and updating of historical sheet

23. Application of Integrated SCM Design:Overview of an automated pharmaceutical supply system

24. Conclusion
Increased
Productivity
Cost reduction Improvement in
product /market
Measuring Supply
Chain performance
Improved Partner
Relationships
InformationTechnology in SupplyChain Management leads to:

25. Future Scope

26. ThankYou