The document discusses the application of information technology in supply chain management. It covers topics such as the definition and dynamics of supply chain management, its components and degrees, the need for SCM, and the bullwhip effect. It also discusses how various IT tools can help address issues like quality, cost, time, technology and continuity of supply. Specific technologies covered include barcoding, RFID, e-commerce and EDI. The use of these technologies can help improve operational efficiency, reduce errors and cut costs in supply chain management.

1. PRESENTED BY:
JUNAID JAFFREY (2012133)
MAHAVEER MEHTA (2012150)
MOHIT PALIWAL (2012166)
NAYAN SHARMA (2012182)

2. APPLICATION OF IT IN
OVERVIEW OF SUPPLY
SUPPLY CHAIN
CHAIN MANAGEMENT
MANAGEMENT
DEFINITION DEFINITION
DYNAMICS DYNAMICS
DEGREES OF DEGREES OF
SCM SCM
COMPONENTS COMPONENTS
OF SCM OF SCM
NEED FOR SCM NEED FOR SCM
BULLWHIP BULLWHIP
EFFECT EFFECT

3.  Supply chain management is the design and
management of seamless, value-added processes
across organisational boundaries to meet the real
needs of the end customers.
 Managers associate SCM with
 Better information exchange
 Shared resources
 Win-win relationships among the members of the chain.
SUPPLY CHAIN MANAGEMENT, From Vision to Implementation
- Stanley E. Fawcett, Lisa M. Ellram, Jeffrey A. Ogden

4. Delivery of a superior value: Quality, Flexibility, Innovation &
Value flow to the customer
SUPPLIER’S CUSTOMER’S
SUPPLIER BUYER CUSTOMER
SUPPLIER CUSTOMER
Demands for a low pricing, high quality; Customer: Supplier
integration across a responsive and flexible supply chain
Value acquisition from Value added in Value delivery to
Suppliers production customers
SUPPLY CHAIN MANAGEMENT, Theories & Practices
- R. P. Mohanty, S. G. Deshmukh

5. COMMON
THE FIRM
Internal Only Purchasing Production Marketing
R&D Logistics
With key suppliers
Key
coordinated through
Suppliers THE FIRM
purchasing
With key customers Key
coordinated through THE FIRM Customers
marketing
With both key suppliers Key Key
and customers Suppliers THE FIRM Customers
End to end Supplier’s Key Key Customer’s
coordination Supplier Suppliers THE FIRM Customers Customers
RARE
SUPPLY CHAIN MANAGEMENT, From Vision to Implementation
- Stanley E. Fawcett, Lisa M. Ellram, Jeffrey A. Ogden

6. PRODUCTION INVENTORY
What, how and How much to make
when to produce and how much to
store
INFORMATION
The basis for making
these decisions and
life line of the
organization
TRANSPORTATION LOCATION
How and when to Where best to do
move product what activity
SUPPLY CHAIN MANAGEMENT, Theories & Practices
- R. P. Mohanty, S. G. Deshmukh

7.  PLAN
 SOURCE
 MAKE
 DELIVER
 RETURN/REVERSE FLOW
SUPPLY CHAIN MANAGEMENT, Theories & Practices
- R. P. Mohanty, S. G. Deshmukh

8.  QUALITY
 The quality of products and services should be virtually defect-free line.
 COST
 For reducing the total cost of acquiring, moving, holding, converting and supporting
products containing purchased materials and services.
 TIME
 Meticulously eliminating all redundant or non-value-added, but time consuming
activities.
 TECHNOLOGY
 To ensure that the firm’s supply base provides appropriate technology in a timely
manner.
 It must ensure that technology which affects the firm’s core competencies is carefully
controlled when dealing with outside suppliers and customers.
 CONTINUITY OF SUPPLY
 To reduce the risk of supply disruptions
- Monitoring trends
- Developing appropriate supplier alliances
SUPPLY CHAIN MANAGEMENT, Theories & Practices
- R. P. Mohanty, S. G. Deshmukh

9. DEMAND
SUPPLIER MANUFACTURER DISTRIBUTOR RETAILER
 Just-in-case inventory, or safety stock, is kept on hand to
compensate for poor information sharing and possible
transportation delays.
 The Bullwhip effect says that demand variations are likely to be
exaggerated as decisions are made up the chain
 Point-of-sale information can reduce the Bullwhip effect
SUPPLY CHAIN MANAGEMENT, From Vision to Implementation
- Stanley E. Fawcett, Lisa M. Ellram, Jeffrey A. Ogden

10. Need for IT in business
 To manage the complexity of business effectively on a
real time basis.
 To address the following business concerns: Flexibility
and variety; Quality, Responsiveness and Edging
towards agility

11.  Intranet/Extranet
 Data Warehouse/ Data mining/ Data marts
 e- commerce/ e-procurement
 Electronic Data Interchange (EDI)
 Bar Coding Technology
 Other technologies (such as Smart cards, Radio
Frequency Identification Device (RFID), etc)

12.  Need for E-commerce
Marketing & Sales Procurement/Logistics
Online product information, Electronic auctioning/bidding, Low
Electronic selling, Product offering/e- cost transportation, Point to point
supermarket selling
Customer services Inventory Management
Repair/return/replacement, On-site High visibility, Removal of obsolete
fixing technical support, Product items, Spot sell of items
Usage information

13. Indirect procurement Direct Procurement Sourcing
Price reduction Visibility of customer Unit cost reduction
demand
Improved contract Visibility of supplier chain Enhanced decision
compliance capacity making
Shortened cycle times Accuracy of production Improved market
capacity intelligence
Reduced administration Reduced
costs Inventory/Operations costs
Enhanced inventory Shortened procurement
management cycle times

15.  Greater effectiveness and efficiency
 Customer satisfaction
 Increased accuracy
 Extension of buying/selling centers
 Reduced transition costs and time

16.  Produced from a sets of bars, and spaces between
bars, of varying widths.
 Idea is to encode an identification number for
something that will be unique

17.  Improved Operational efficiency
 Reduce Errors
 Cut costs

18.  Electronic labels are programmed with unique
information and attached to objects
 Consist of two parts: a tag and a reader
 Tag (transceiver) is activated by reader which transmit
a signal using radio frequency waves, tag in return
transmit encoded data back to the reader.

20.  Remote sensing
 Mobility
 High accuracy
 Cluster reading
 All weather capability