information systems in sc integration & management
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Information systems
in SC Integration& Management
Submitted by:-Sanchita Baidya 09609010
Ankita Goel 09609089
Bharti Batra 09609121
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Agendum
Introduction
Role of IT in SCM
Review of literature
Application of IT in
SCM
Conclusions
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Introduction
SCM is dened as the
Integration of key BP from end
user through original suppliers
thatprovides products, services,
& information and hence addvalue for customers and other
stakeholders.
SCM is based on the integration of all
activities that add value to customers
starting from product design todelivery.
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IT in SCM
To overcome the ever-increasing complexity of
the systems driving buyersupplier
relationships.
SCM emphasizes the overall and long-termbenet of all parties on the chain through co-
operation and information sharing.
To reduce uncertainty and enhance shipment
performance of suppliers.
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Classication of the literature on IT in SCM
Five major broad categories focusing on developing an
IT-enabled SCM are:-
(a) Strategic planning for IT in SCM
(b) Virtual enterprise and SCM
(c) E-commerce and SCM
(d) Infrastructure for IT in SCM
(e) Knowledge and ITmanagement in SCM
(f) Implementation of IT in SCM
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(a) Strategic planning for IT in SCM
Developing long-term plans and changes to theirorganization and in turn to improve their
competitiveness.
Organizational restructuring may be required if a
company decides to go for an enterprise resourceplanning (ERP) systems
Manufacturing IS strategic role includes minimizing
manufacturing's negative potential, achieve parity with
competitors, provide credible support to the businessstrategy and pursue a manufacturing-based competitive
advantage.
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Cont....1. MARKETING REASONS OF IT IN SCM
Organizations to have an eective supply chain or physically distributedenterprises.
IS that specically addresses the requirements of leveraging the emergingdevelopments in IT
Includes strategic interests of powerful corporate players and thestruggles of these players for domination in the marketplace.
2. ECONOMIC REASONS
Flexibility and responsiveness are interconnected with cost. IT helps to improve the accurate information ow and in turn accurate
decisions to support the business process in an eort to meet the changingmarket requirements.
Four critical performance measures:- exibility, quality, time & cost.
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3. ORGANIZATIONAL
Strategic planning of IT includes organizational structure, awareness of top
management, BPs, strategic alliances, and IT that influence the overall
performance of IT-enabled SCM.
Emergence of new network technologies and expansion of the Internet can
improve an organizations internal and external communication
capabilities. Organizational design for IT-enabled SCM is flexible.
4. TECHNOLOGICAL
IT-enabled SCM facilitate effective technology transfer between partners in
a network of firms.
Opportunities for a radical redesign of supply chains.
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(b) Virtual Enterprise In SCM
VE/VO is based on developing a network of collaborative firms
with necessary core competencies for reaching the market on time
with right products.
IT is so important in developing and operating a VE/VO. Virtual
enterprise is a network of independent companies, often formercompetitors, who come together quickly to exploit fast-changing
opportunities.
Some of the key factors in virtual enterprise development are IT-
enabled SCM, partnership, virtual enterprise and supply chain, and
virtual enterprise and IT.
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1. PARTNERSHIP
Managerial and cultural aspects of strategic partnershipsin logistics involving such issues as openness toinnovation and trust are just as critical as IT.
2. VIRTUAL TEAMSAND SUPPLYCHAIN
To examine the relationship between all parties along thevalue chain.
Virtual team needs to be built by concentrating onprocess, teaming and technology factors.
3. VIRTUAL ENTERPRISEAND IT
Without IT, one could hardly imagine a virtual enterprisedevelopment.
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(c) E-Commerce & SCM
The Internet helps to manage
supply chain activities.
For example, ERP systems
such as SAP, via Extranets
connect not only different
functions within a firm but
also among the firms supply
chain partners (i.e. suppliers,
distributors, and third party
logistics providers).
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1. PURCHASING
The increased popularity of e-commerce is due to a multitude ofOperational benefits it can bring to purchasing practices. cost savings resulting from reduced paper transactions shorter order cycle time subsequent inventory reduction enhanced opportunities for the supplier/buyer partnership
2. OPERATIONS
Building a dynamic model of the web-based supply chain in eachof the collaborative industrial sectors
Sector-based models and prototypes
3.LOGISTICS
With virtual logistics, the physical and information aspects oflogistics operations are treated independently from each other.
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(d) Infrastructure for IT in SCM
Consists of Internet connectivity, hardware and software including
application systems integration. Two major dimensions that will influence the formation process.
-type of organizational structure and relationships
-Major dimension is the electronic commerce environment.
1. ORGANIZATIONAL
Adaptation of e-business infrastructure involves deep level changes that
affect core elements of an organization.
2. TECHNOLOGICAL
Developments in hardware and telecommunication technologies have
occurred in order to meet the rising demands from companies.
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(e) Knowledge and IT management in SCM
KM is concerned with recognizing and managing all of anorganizations intellectual assets to meet its business objectives.
To improve operational and strategic efficiency and effectiveness.
1. TECHNOLOGYMANAGEMENT
IT such as XML for representing corporate data, ERP infrastructure
that provides support for logistics operations, and web infrastructure
allow B2B commerce successful or SCM.
ERP is increasingly being used as a technology enabler for SCM and
problems associated with its implementation.
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.2. EDUCATIONAND TRAINING
Most important component of any change process in an organization. To implement and subsequently use any IT/IS, workforce needs to be
motivated to work in a transparent and open communication environment. Technologies alone will not help to improve the organizational
competitiveness.
3. IMPLEMENTATION OF IT IN SCM
Integration of the SC activities and processes before development andimplementation of the IS in SCM is needed.
ADAGE(the powerful ERP and SCM solution) is a software solution
designed specifically for the process and hybrid industries. By implementing ADAGE, Cumberland has been able to reduce inventory,
shorten delivery lead-times, improve customer service, and better plan andforecast demand, thereby cutting production costs.
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Implementation of IT in SCM is
ORGANIZATIONAL
Support of top management and overallorganizational structure.
Decisions of a structural nature contain three
dimensions: system competencies, (ii) technology
scope, and (iii) IT alliance.
METHODOLOG
ICAL
Implementation framework included thefollowing steps: (i) develop strategy, (ii)
assessment, (iii) create culture, (iv) prioritize
improvements, (v) plan the change, (vi)
implement improved situation and support
implementation.
HUMANRESOURCE level of education, knowledge in computers,
international exposure, training and education,
reward and employee empowerment and incentive
scheme.
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A framework for the development of IT for effective SCM
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.
IMPLEMENTATION ISSUES OF IT IN SCM
Requires IT knowledgeable managers from all functionalareas.
Before implementing IT, there is a need to look at the
business model and then identify suitable IT systems
required to support the objective of achieving agility in a
supply chain.
BPR has been considered as one of the most important
strategies for streamlining the BP.
BPR and IT compliment each other in their efforts to
achieve dramatic improvements by radical changes.
Lack of case studies and empirical research continue to put
the companies behind in terms of coming forward toimplement various IT for achieving an integrated SCM.
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.
CONCLUSION
IT is an essential ingredient for business survival and improves the
competitiveness of firms.
The SC activities are driven by the need to streamline operations
to achieve quality service to customers.
A lack of critical review of the literature that would influence thesuccessful application of IT in SCM.
Commercial enterprise information systems require flexibility.
Performance measures and metrics need to be established for
measuring the performance and suitability of IT in SCM.
The alignment between information model and supply chainmodel or objectives needs further investigation.
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May I help you with any
clarifications!!!
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