Role of Computer
and IT in Supply
Chain Management
SUBMITTED TO:- MS. SHEHNILA ATHAR
SUBMITTED BY:- VINISH KUMARI
AMIR KHAN
KULDEEP TOMAR
PRIYA GOEL
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Introduction:o SCM concerns with flow of product
and information between its
members/org.
o Technology enable org. to avail
information easily.
o Technologies help to coordinate the
activities of SC.
o Different costs decreased due to
increasing rate of technologies.
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Cont
o Materials and
information feedback
flows
o Computer data
recognition
equipments,
communication
technologies, factory
automation, hardware
devices and services
Customers
Importance of Information in an integrated
supply chain management environment
o Remove paper based transaction which was
very complex to handle
o provides a competitive positioning of
business initiatives like cycle time reduction,
implementation, implementing redesigned
cross-functional process.
o factors impacted by information
technology:
Satisfying and pleasing customer by
serving best to him
Increase ability to reduce inventory and
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human resource requirement to a
Supply chain organizational dynamics
o All enterprises share joint belief to better the
collaborative efforts
o Power with in the supply chain is a central
issue
o Retailers play important role to assess
information
o The Wal-Mart & P&G share information for
mutual advantage. Through sound
information technologies Wal-Mart shares
point of sale information from its many retail
outlet directly with P&G and other major
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suppliers.
Information and Technology:
o Development and maintenance of Supply
chain's information systems both software
and hardware must be addressed.
o Hardware include input/output devices and
storage media
o Software includes the entire system and
application program used for processing
transactions management control,
decision-making and strategic planning
Two basic types of SCM system
software are:
oSupply Chain Planning software (SCP): uses
mathematical models to predict inventory levels
based on the efficient flow of resources into the
supply chain
oSupply Chain Execution software (SCE): is
used to automate different steps in the supply
chain such as automatically sending purchase
orders to vendors when inventories reach
specified levels
IT for Supply Chain Management
Software Systems
Electronic Data Interchange(EDI)
Material Requirements Planning
(MRP)
Manufacturing Resource
Planning (MRP II)
Enterprise Resource Planning
(ERP)
Supply Chain Management
Systems (SCM)
Customer Relationship
Management (CRM)
Internet-based Software
Network Infrastructure
Wide Area Network
(ERP)
Enterprise Resource Planning
Enterprise Resource Planning (ERP) Systems
o Enterprise resource planning (ERP) is a term used to
refer to a system that links individual applications
(for example, accounting and manufacturing
applications) into a single application that integrates
the data and business processes of the entire
business.
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Major ERP Systems
o SAP R/3
o Oracle
o PeopleSoft
Toyota uses People Soft and SAP
o Microsoft Dynamics
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(EDI)
Electronic Data
Interchange
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Electronic Data Interchange:
o Computer-to-computer exchange of
business documents in a standard format
o Describe capability and practice of
communicating information between two
orgs. electronically instead of traditional
form of mail, courier, & fax.
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The benefits of EDI are:
Quick process to information.
Better customer service.
Reduced paper work.
Increased productivity.
Improved tracing and expediting.
Cost efficiency.
Competitive advantage.
Improved billing.
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Bar coding and Scanner:
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Bar-coding and scanner.
o This code specifies name of product and its
manufacturer.
o These are parallel lines at uniform space
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Cont
o Industries adopted it in 1981
o Scanner read these barcodes
o Use in healthcare, hospitals, production houses,
and ware houses etc.
o Uses to identify the product.
o It makes process of SCM simpler and more
efficient.
o Helps to keep track of moving products and
reduce errors
o Comfortable to use, affordable, easy to handle.
o Generate accurate and timely information.
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Data Warehouse
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o It is a consolidated database maintained
separately from an organization's production
system database. Many orgs. have multiple
databases. A data warehouse is organized around
informational subjects rather than specific
business processes. Data held in data warehouses
are time dependent, historical data may also be
aggregated.
Data warehouse:
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Uses of data warehouse:A Data Warehouse DeliversEnhanced Business
Intelligence
A Data Warehouse Saves Time
A Data Warehouse Enhances Data Quality and
Consistency
A
Data
Warehouse
Provides
Historical
Intelligence
A Data Warehouse Generates a High RO
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Internet and Extranet
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Intranet vs. Extranet
oIntranet is to use Internet technology and protocol
(TCP/IP) for the internal communications
oExtranet is to use Internet technology and protocol
for the internal and suppliers communications
oWAN Technologies
Ordinary telephone line and telephone modem.
Point-to-Point Leased lines (such as T1 line)
Public switched data network (PSDN)
oSuch as ATM, Frame Relay
Send your data over the Internet securely, using
Virtual Private Network (VPN) technology
PSDN
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Conclusion: continuous advancement of technology
Customers' expectations are also increasing
The strategic and technological innovations in
supply chain will impact on how organizations buy
and sell in the future.
Clear vision, strong planning and technical insight
into the Internet's capabilities is necessary
Internet technology, World Wide Web, electronic
commerce etc. will change the way a company is
required to do business.
Companies must realize the power of technology
to collaborate with their business partners.
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THANK YOU
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