It gives a small idea of different functions of Information technology in the supply chain management.
Size: 3.49 MB
Language: en
Added: Oct 28, 2018
Slides: 45 pages
Slide Content
Role of IT in SCM
Introduction to IT used in Supply Chain Recent development in technologies enables the organization to avail information easily in their premises. Helps to coordinates the activities to manage the supply chain. In the field of supply chain management, there has always been an abundance of data. Shipping bills alone make a lot of information. Gathering the data is important; evaluating the information, setting benchmarks and measuring performance and progress is critical, the purity of raw material is important. The small issues can have a measure impact. From the data available many reports are generated, which can pinpoint simple solutions that can generate cost saving and or service improvements.
Traditional View of Supply Chain
Consequences of Traditional View
Areas In Which IT Use For Optimizing Supply Chain Information integration is sharing of information among supply chain members. It is exploiting the information collectively by all the people.
Importance of IT Management In Supply Chain
Benefits of Information Technology In supply Chain Enable collaboration with partners
Type of IT Use in SCM Drivers of Using IT in SCM
Enterprise Resource Planning (ERP) Systems Enterprise Resource Planning (ERP) Systems are Enterprise-wide Information Systems used for automating all activities and functions of a business. These are transaction - based information systems that are integrated across the whole business.
Transportation Management Systems 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 earlier visibility into the supply chain. 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 earlier visibility into the supply chain.
Advantages of Transport Management System Increase customer service Increase in Warehouse Efficiency Develop New Delivery Capabilities Inventory Reductions Cash Flow Improvements
Electronic Commerce Electronic commerce involves the broad range of tools and techniques used to conduct business in a paperless environment. Hence it comprises electronic data interchange, e-mail, electronic fund transfers, electronic publishing, image processing, electronic bulletin boards, shared databases and magnetic/optical data capture.
Electronic commerce helps enterprises to automate the process of transferring records, documents, data and information electronically between suppliers and customers, thus making the communication process a lot easier, cheaper and less time consuming.
Electronic Data Interchange Electronic Data Interchange (EDI) involves the swapping of business documents in a standard format from computer-to-computer. It presents the capability as well as the practice of exchanging information between two companies electronically rather than the traditional form of mail, courier, & fax.
Purchase request initiated in the organization Inventory and warehousing Receiving department Purchasing department Paper-based information Finance department Order delivery Payment Buyer Paper-based information Finance department Shipping department Manufacturing department Sales department Seller Order Delivery Information Flow Without EDI
Purchase request initiated in the organization Inventory and warehousing Receiving department Purchasing department EDI capable computer Finance department Automated order confirmation Payment Buyer EDI capable computer Finance department Shipping department Manufacturing department Sales department Seller Billing details Purchase order delivery Order Delivery Information Flow With EDI
The major advantages of EDI Instant processing of information Improvised customer service Limited paper work High productivity Advanced tracing and expediting Cost efficiency Competitive benefit Advanced billing
The application of EDI supply chain partners can overcome : The deformity and falsehood in supply and demand information by remodeling technologies to support real time sharing of actual demand and supply information.
Barcode Scanning Bar Codes are the representation of a number or code in a form suitable for reading by machines. Bar codes are widely used throughout the supply chain to identify and track goods at all stages in the process. Bar codes are a series of different width lines that may be presented in a horizontal order, called ladder orientation, or a vertical order, called picket fence orientation.
Radio Frequency Identification RFID is a vital piece of technology that can provide innumerable benefits to the business owner. RFID chips are placed on every product and provide a way for business owners to easily track their inventory. Due to the increased visibility RFID chips provide, they will substantially improve your supply chain efficiency by detecting any order anomalies as they occur, enabling employees to immediately correct mistakes.
In addition, it allows for easier and more consistent tracking, enabling business owners to have maximum control and visibility over their products at all times. RFID chips provide computerized product management, they can eliminate the potential for errors, simplify the supply chain, and reduce operating costs.
Sales force Automation Sales force automation is a technique of using software to : Automate the business tasks of sales Including order processing Contact management Information sharing Inventory monitoring and control Order tracking Customer management Sales forecast analysis Employee performance evaluation