bins final
TRANSCRIPT
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IT in Supply Chain Management
Management Information System
Group # 8
Submitted to
Prof. Bins Matthew
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Sendhil Nadar (36)
Gurdeep Nagi (37)
Kalpesh Nahata (38)
Angad Singh Oberai (39)
Gurmeet Singh Obhan (40)
Group Members
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Definition and Meaning
Functions and Activities of SCM
Supplier Manufacturer Distributor Retailer Customer
What is Supply Chain?
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Objective of Supply Chain
Maximize overall profit
Profit
Revenue generated from customer - costs incurred
along the entire chain
(e.g. manufacturing / storing / distributing the product)
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Strategic
Operational
Supply Chain Decisions
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So What is supply Chain
management?
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Location
Production
Inventory
Transportation
Major Decision Areas in SCM
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Bull Whip Effect
Small changes in consumer demand result in
large variations in orders placed upstream
Amplification of order size variation as one
moves up the supply chain
Supplier Manufacturer Distributor Retailer Customer
Buys 10Orders 15
Delay 2 weeksDelay 2 weeks
Orders 25
Delay 2 weeks
Orders 40
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Illustration
Proctor & Gamble coined the term bullwhip effect by
studying the demand fluctuations for Pampers (disposablediapers)
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Causes of Bull Whip
Forecast errors
Overreaction to backlogs
Lead time
No communication and coordination
Delay times for material and information flow
Batch ordering
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Impact of Bull Whip
Excessive inventory investments
Poor customer service levels
Lost Revenues
Reduced Productivity
More difficult decision making
Sub-Optimal transportation
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Information is the driver that serves as the glue
to create a coordinated supply chain
Information must have the following
characteristics to be useful:
Accurate
Accessible in a timely manner
Information must be of the right kind
Role of Information Technology in a
Supply Chain
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Relevant information available throughout the
supply chain allows managers to make decisions
that take into account all stages of the supplychain
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
Importance of Information in a
Supply Chain
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E-commerce
Electronic data interchange
Data warehouse
Bar coding & scanner
Enterprise resource planning
Information & Technology:
Application of Supply Chain
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The Supply Chain Macro Processes
Customer Relationship Management (CRM)
Internal Supply Chain Management (ISCM) Supplier Relationship Management (SRM)
Plus: Transaction Management Foundation
Why Focus on the Macro Processes?
Macro Processes Applied to the Evolution of
Software
The Supply Chain IT Framework
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Supplier
Relationship
Management(SRM)
Internal
Supply Chain
Management(ISCM)
Customer
Relationship
Management(CRM)
Transaction Management Foundation (TFM)
Macro Process in a Supply Chain
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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
Customer Relationship Management
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Includes all processes involved in planning for andfulfilling 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
Internal Supply Chain Management
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Those processes focused on the interaction betweenthe enterprise and suppliers that are upstream inthe supply chain
Key processes: Design Collaboration
Source
Negotiate
Buy
Supply Collaboration
There is a natural fit between ISCM and SRM
processes
Supplier Relationship Management
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Enterprise software systems (ERP)
Earlier systems focused on automation of simple
transactions and the creation of an integrated
method of storing and viewing data across theenterprise
Real value of the TMF exists only if decision making
is improvedThe extent to which the TMF enables integration
across the three macro processes determines its
value
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The Transaction Management
Foundation
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At the highest level, the three SCM macro processeswill continue to drive the evolution of enterprise
software
Software focused on the macro processes will becomea 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
The Future of IT in Supply Chain
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