role of computer

7/31/2019 Role of Computer

1/19


2/19

Information is a key factor in supply chaindriver

It serves as a glue that allows other supply

chain drivers to work together with the goalof creating an integrated supply chain.

Supply chain process executes transactionsand managers make decisions.

Managers must understand how informationis gathered and analysed


3/19

IT comes into play IT consists of hardware, software and people

throughout a supply chain that gather,analyse and execute upon information

IT serves as a eye and ear of supply chainmanagement


4/19

Characteristics to be useful when makingsupply chain decisions.

Information must be accurate

Information must be accessible in a timelymanner

Information must be of right kind.

Information must be shared.


5/19

Information is used when making a wide variety ofdecisions about each of the supply chain drivers

Facility-location ,capacity, schedule of facilityrequired, demand, exchange rate, tax

Inventory- cost of carrying inventory, cost of

stock out, cost of ordering Transportation- Network, routing, modes,

shipment Sourcing- product

margin,prices,quality,leadtimes Pricing and revenue mgmt- pricing policies,

willingness to pay, supply issue, lead times,availability


6/19

Transaction Management Foundation(TMF)It includes basic ERP systems, and other software


7/19

Design collaboration Strategic planning Market

Source Demand planning Sell

Negotiate Supply planning Call centre

Buy Fulfillment Order managementSupply collaboration Field service

Transaction Management Foundation(TMF)


8/19

Strategic planning- focuses on networkdesigning

Demand planning- demand forecasting,ddmgmt tool

Supply planning- Factory planning andinventory planning capabilities are typicallyprovided by supply planning software

Fulfillment- execution throughtransportation

Field service-focus on setting inventorylevel for spare parts as well as schedulingservice calls


9/19

CRM takes place between between anenterprise and its customers downstream.

Generate customer demand and facilitatetransmission and tracking of orders


10/19

Marketing Sell

Order management-ERP

Call/service centre

CRM process must be integrated with internaloperations to optimize performance


11/19

Customer contact bytelephone/mail/in-person

Personal sellingAfter sales servicesComplaint handlingAccount managementCustomer careCustomer satisfaction

Integration withtechnology

Web and internet

Customer databaseCustomer informationsystem

Electronic point of saleSales force automationCall centresSystems integrationLifetime value ofcustomer


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Understanding and differentiating thecustomers

Understanding needs Differentiate based on customers characteristics ,needs and

behaviour

Development and Customization Develop products, services and channels to meet customers

need Customize by customer segment

Interaction and delivery

Interact with customers and prospective customers Deliver increased value to customers

Acquisition and retention Acquire customers and prospective customers Retain valuable customers


13/19

Benchmarking would refer to quantification ofoperational performance in supply chains ofsimilar companies

Establish internal targets with managementprocess

Practices improvement so as to deliver best-in-class results

The identification of the right metrics and itsmeasurement is very critical when it isdesired to do performance benchmarking


14/19

Cost and time efficient Form of faster and defect free deliveries

New product configuration

Taking lesser time Giving higher service level

Price which gives best value to the customer


15/19

The supply chain council suggestedintegrated supply chain metrics namely:

A) Cycle time metrics

B) Cost metrics

C) Service quality metrics

D) Asset metrics


16/19

ProductionCycle time

Deliverytime

Total cycletime

Cash to cashtime

Receipt an order from the customerand the completion of the product

ready for shipment

Shipment leaves the manufacturersfacility, to the time it arrives atcustomers location

Time an order receipt by thecompany and time it reaches thecustomers location

Number of days between for rawmaterials and getting paid forproducts

10 days

5 Days

35 days

33 days

1-3days

1-3days

> 7days

0, somepaidadvance


17/19

Total supply chain cost is around 6.5% of the

sales but the global benchmarking is 1-2% ofsales.

Total supply chain cost(TSCC)(% of sales) 1-2Inbound transportation(% of TSCC) 11-20

Outbound transportation(% of TSCC) 21-30

Warehousing cost(% of TSCC) 6-10

Inventory carrying cost(% of TSCC) 1-3

Cost of transit losses 1-3

Cost of damages 1-3

Other cost


18/19

These metrics refer to shipment delivery interms of time, quantity and quality

Percent suppliesdelivered as perscheduled quantity

%supplies of the value of quantityordered that are delivered as perschedule(98-99%)

100%

Percent supplieddelivered with rightquality

98-99 , 1-2% lots are rejected 100%


19/19

InventoryTurnver

Velocity ofgoods( speed ofreplenishment)Larger no timeindicates better

WC resulting inincrease inprifitability orROI

18times(consumer

goods industry)

30 times

role of computer

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