IT for Supply Chain Excellence
NAME : VISHNU VIGNESH N
DEPARTMENT: M.E PRODUCTION ENGINEERING (PT)
ROLL NO: 17MP63
Introduction
Technologies are helpful to coordinates the activities to manage the
supply chain.
The cost of information is decreased due to the increasing rate of
technologies.
In the integrated supply chain model bi-directional arrow reflect the
accommodation of reverse materials and information feedback flows.
Importance Of information in SCM
Prior to 1980’s the information flow is based on paper.
Due to paper based, the transaction and communication were slow and are
not clearly understood.
After IT infrastructure capabilities, it provides a competitive positioning of
business initiatives like
i. Cost Reduction
ii. Productivity
iii. Improvement and Product / Market Strategies
Supply Chain Organizational Dynamics
During initiatives there are specific roles for enterprises to play.
During these specific roles the enterprises may find it difficult due to central
issue.
Due to this issue, the retailers have grown much access regarding with the
information through technologies.
Barret and konsynsik have identified five basic levels of participation of
individual firms with in the inter-organizational system.
1. Remote Input / Output mode: In this case the member participates
from a remote location with in the application system supported by one
or more higher-level participants.
2. Application processing node: In this case a member develops and
shares a single application such as an inventory query or order
processing system.
3. Multi participant exchange node: In this case the member develops
and shares a network interlinking itself and any number of lower level
participants with whom it has an established business relationship.
4. Network control node: In this case the member develops and shares a network
with diverse application that may be used by many different types of lower level
participants.
5. Integrating network node: In this case the member literally becomes a data
communications/data processing utility that integrates any number of lower level
participants and applications in real times.
Four fundamental mistakes made when determining information requirements are as
follows:
1. Viewing system as functional instead of cross-functional.
2. Interviewing managers individually instead of jointly.
3. Not allowing for trial and error in detail design process.
4. Asking the wrong question during the interview.
Application Of SCM
SCM applications are:
1. E-Commerce
2. Electronic Data Interchange
3. Barcode Scanning
4. Data Warehouse
5. Enterprise Resource Planning Tools
E-Commerce
Broad range of tools and technique to conduct business in a paperless
environment.
Companies are able to automate the process of moving documents
electronically between suppliers and customers.
E-Commerce includes:
1. EDI
2. E-mail, E-fund transfers, E-Publishing
3. Image Processing, E-Bulletin Boards
4. Shared Databases & Magnetic / Optical data capture
Electronic Data Interchange
Computer to computer exchange of business document in a standard
format.
Capability and practicing of communicating information between two
organizations electronically instead of traditional from of mail, courier & fax.
Benefits of EDI:
1. Quick process to information.
2. Better customer service.
3. Reduced paper work.
4. Increased productivity.
5. Improved tracing and expediting.
6. Cost efficiency.
7. Competitive advantage.
8. Improved billing.
Barcode Scanning
Used in counters of retail markets, shopping malls, etc. used to identify the
name, manufacture & price of the product.
Tracking items like PC assembly operations and automobiles in assembly
plants.
Data Warehouse
Store comprised all the database.
Centralized independently from the system database.
Data presents in DW is time dependent and easy accessible.
Historical data’s are accumulated in DW.
Enterprise Resource Planning Tools
ERP’s are used by many enterprises as processing tools.
They grab data and minimize paperwork and tasks related to financial,
inventory, customer order informations, etc
ERP’s hold high level of integration through departments of shared data with set
of rules to access the information.
Conclusion
Due to advancement of technologies markets expectations extend day by day.
So enterprises need to adapt to the technological innovations by integrating it
with their traditional method of SCM to process, sustain and enhance
performance of the system with cost reduction and also best marketing
strategies to overwhelm the future.
