The document discusses the role of information technology (IT) in supply chain management, emphasizing its importance in gathering, analyzing, and executing information to enhance supply chain performance. It outlines key macro processes such as customer relationship management (CRM), internal supply chain management (ISCM), and supplier relationship management (SRM), highlighting the significance of accurate, timely, and relevant information for decision-making. Additionally, it explores the evolution of ERP systems and the future potential of IT in supply chains, including advancements like radio-frequency identification (RFID) technology.

1. Supply Chain Management:
IT in the Supply chain
Rajendran Ananda Krishnan
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2. Topics to be covered
 IT in the Supply chain
 IT Framework
 Customer Relationship Management
 Internal Supply Chain Management
 Supplier Relationship Management
 Transaction Management
 Future of IT
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3. Role of IT in SC
 IT consists of tools used for the purpose of :
◦ 1. Gathering of Information
◦ 2. Analysis of Information
◦ 3. Execute upon information to increase the
performance of SC
 IT consists of Hard ware, Soft ware and people
throughout a SC, that gather, analyze and
execute upon Information.
 Eyes, ears, sometimes- brain for decision
making
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4. Characteristics of Information
 Information must have the following characteristics,
while making decisions in SC
1) Must be accurate – Without information that gives a
true picture of the state of the supply chain, it is very
difficult to make good decisions.
2) Accessible in a timely manner – To make good
decisions, a manager needs to have up-to-date
information that is easily accessible.
3) Must be of right kind – Companies must think about
what information should be recorded so that valuable
resources are not wasted collecting meaningless
data while important data goes unrecorded.
Decisions are about each of the supply chain drivers::
1) Facility 2) Inventory 3)Transportation
4) Sourcing 5) Pricing
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5. Supply Chain Macro Process
( Enterprise SW)
• Customer Relationship
1 management -CRM
• Internal supply Chain Management-
2 • ISCM
• Supplier Relationship Management-
3 • SRM
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6. The Macro Processes in a Supply Chain
1 2 3
Supplier Internal Customer
Relationship Supply Relationship
Management Chain Management-
Management-
( SRM) (CRM)
(ISCM)
Transaction Management Foundation
TMF
Software Industry commonly calls this as Supply Chain ‘ with out’
Internal SCM
Our definition : SC includes SRM+ ISCM + CRM
4th Important Building Block is TMF, on which The Macro Process rests.
ERP Systems = Integration and Infra structure - Finance+ HR
Required for all the 3 Processes –To function andhttps://www.facebook.com/ialwaysthink
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7. The Supply Chain Macro Processes
 Customer relationship management –
Processes that focus on downstream
interactions between the enterprise and its
customers.
 Internal supply chain management-
Processes that focus on internal
operations within the enterprise.
 Supplier relationship management –
Processes that focus on upstream
interactions between the enterprise and its
suppliers. https://www.facebook.com/ialwaysthink
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8. Why Focus on the Macro Processes?
Total Profitability of SC by
Goal is to increase the
working together
Good SC Mgt is not a Zero sum Game, In which
One stage of the supply
At the expense of others..
chain increases profits
Firms must expand their scope beyond their scope
By thinking all three
in terms of Macro Processes
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9. Customer Relationship Management – CRM Macro
Process
Marketing: Decision regarding
Which customer to Target?
How to target? What product? How to
Price?
Call/ Service
Order Centre – Primary
Management- Point of Contact.
Sell- Providing
Tracking the Helps customer
Sales force,
Order, Planning to place order,
actual sale,
& Executing the offer products,
order Order status,
Solve problems
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10. Customer Relationship
Management process is to
Goal of the CRM macro generate customer
demand and facilitate transmission and tracking of orders.
Key processes under CRM are as follows :
 Marketing – Involve decisions regarding which customers to
target, how to target customers, what products to offer, how to
price products and how to manage the actual campaigns
targeting customers.
 Sell – The sell process includes providing the sales force the
information it needs to make a sale and then execute the
actual sale.
 Order management – Important for the customer to track his
order and for the enterprise to plan and execute order
fulfillment.
 Call/service center – Helps customers place orders,
suggests products, solves problems, and provides information
on order status.
Eeg. Of CRM software – Siebel, Salesforce.com, SAP and
Oracle.
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11. Internal Supply Chain Management
Supply
Planning-
Demand Planning Factory
Strategic – Forecasting ,
Planning- Net Planning &
Analyzing the Inventory
work design of Impact on
SC Planning
Demand
By Supply Pl
Software
Fulfillment- Links
Field Service- based Each Order to a
on spares Inv, specific supply
Scheduling Ser calls source and means of
Transportation
Successful ISCM Software providers have helped to improve ‘
Decision Making.
But Integration between CRM and ISCM , CRM and SRM will have future
Opportunities. https://www.facebook.com/ialwaysthink
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12. Internal Supply Chain
Management
Various processes included in ISCM are as follows :
 Strategic Planning – focuses on the network design of
the supply chain.
 Demand planning – consists of forecasting demand
and analyzing the impact on demand of demand
management tools such as pricing and promotions.
 Supply planning – Factory planning and inventory
planning capabilities are typically provided by supply
planning software.
 Fulfillment – Links each order to a specific supply
source and means of transportation.
 Field service – Service processes focus on setting
inventory levels for spare parts as well as scheduling
service calls.
Exg. Of ISCM software – i2 Technologies, Manugistics,
SAP and Oracle. https://www.facebook.com/ialwaysthink
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13. Supplier Relationship Management
Supplier Enterprise Customer
• SRM • ISCM • CRM
System System System
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14. Supplier Relationship
Management
 Design Collaboration
 Source
 Negotiate
 Buy
 Supply collaboration
Eg of SRM Software – Agile, MatrixOne,
Ariba, SAP, Oracle.
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15. The Macro Processes and their
Processes
SRM ISCM CRM
Design Strategic Market
Collaboration Planning
Demand
Source Sell
Planning Sell
Negotiate Supply
Planning Call Center
Buy Fulfillment Order
Management
Supply
Field Service
Collaboration
TMF
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16. Transaction Management Foundation
(TMF)
 During early 1990s, ERP systems were
popular. SAP continued as the market leader,
but other powerful ERP players included
Oracle, Peoplesoft, JD Edwards and Baan.
 Little focus was on 3 Macro processes, and
soft ware application on ‘improved decision
making’
 Automation and Building Transaction
Management were given importance.
 Automation of simple transaction and
Integration of store and view of data process
excelled in ‘division and enterprise level’.
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17. Now and Future
 During 1990s, ERP companies became
largest enterprises due to huge demand –
they included SAP, ORACLE, PEOPLE
SOFT, JD EDWARS and BAAN.
 Real value of ‘Transaction Management
Foundation’(TMF) was realized when
decision making with in Supply Chain was
improved.
 Firms focused on decision making on these
3 Macro Processes- Realignment of ERP
into CRM, ISCM and CRM. This is the trend
NOW and in FUTURE. https://www.facebook.com/ialwaysthink
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18. FUTURE OF IT
Two potential paths, for companies to enter
the market:
 1. Through Superior Functionality –
specific for a particular Industry- with ease
of use.
 2. Through Integrated Product linking 3
Macro Processes
 Difficult for start-up companies, Large
companies with tremendous resources
can take this path, obviously Microsoft.
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19. RFID Technology
 Radio-frequency identification (RFID) is the use of a wireless
non-contact system that uses radio-frequency electromagnetic
fields to transfer data from a tag attached to an object, for the
purposes of automatic identification and tracking. The tag
contains electronically stored information which can be read
from up to several meters (yards) away. Unlike a bar code, the
tag does not need to be within line of sight of the reader and
may be embedded in the tracked object.
 RFID tags are used in many industries. An RFID tag attached to
an automobile during production can be used to track its
progress through the assembly line. Pharmaceuticals can be
tracked through warehouses. Livestock and pets may have tags
injected, allowing positive identification of the animal. RFID
identity cards can give employees access to locked areas of a
building, and RF transponders mounted in automobiles can be
used to bill motorists for access to toll roads or parking.
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