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Lesson 9 - Informarion Technology in Supply Chain

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Lesson 9 - Informarion Technology in Supply Chain

Uploaded by

Madusara Payagala
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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IT in Supply

Chain
L E C T U R E R : A R O S H A W E E R AT H U N G A

M B A ( R e a d i n g ) , B . S c . ( U S J ) , M I LT

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Content
➢The role of IT in a Supply Chain

➢The Supply Chain IT Framework

➢The Future of IT in Supply Chain

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The role of IT in a supply chain
Information is a key supply chain driver because it serves as the glue that allows the other supply
chain drivers to work together with the goal of creating an integrated, coordinated supply chain.

Information is crucial to supply chain performance because it provides the foundation on which
supply chain processes execute transactions and managers make decisions.

Without information, a manager cannot know what customers want, how much inventory is in
stock, and when more product should be produced or shipped.

In short, information provides supply chain visibility, allowing managers to make decisions to
improve the supply chain’s performance.

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Cont.
Availability and analysis of information to drive decision making is a key to the success of a supply
chain. To support effective supply chain decisions, information must have the following
characteristics:
➢Information must be accurate - Without information that gives a true picture of the state of the supply
chain, it is difficult to make good decisions.
➢Information must be accessible in a timely manner - Accurate information often exists, but by the time it is
available, it is either out of date or it is not in an accessible form.
➢Information must be of the right kind - Decision makers need information that they can use. Companies
must think about what information should be recorded so that valuable resources are not wasted
collecting meaningless data while important data go unrecorded.
➢Information must be shared - A supply chain can be effective only if all its stakeholders share a common
view of the information that they use to make business decisions.

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The supply ➢Customer relationship management (CRM) - Processes that focus on
downstream interactions between the enterprise and its customers.

chain IT ➢Internal supply chain management (ISCM) - Processes that focus on


internal operations within the enterprise. Note that the software

framework industry commonly calls this “supply chain management” (without the
word “internal”), even though the focus is entirely within the
enterprise. In our definition, supply chain management includes all
three macro processes, CRM, ISCM, and SRM.
➢Supplier relationship management (SRM) - Processes that focus on
upstream interactions between the enterprise and its suppliers.

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Cont.

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The future of IT
in the supply
chain
The following three important trends will
impact IT in the supply chain:
➢The growth in software as a service (SaaS)
➢Increased availability of real-time data
➢Increased use of mobile technology

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References
Harrison, A. & Hoek, R. V. (2015). Logistics Management and Strategy 5th edition: Competing
through the Supply Chain (5th ed.). USA: Pearson Education Ltd.

Jacobs, F. R., Chase, R. B., & Lummus, R. R. (2014). Operations and supply chain management
(pp. 533-535). New York, NY: McGraw-Hill/Irwin.

Rushton, A. & Croucher, P. (2014). The Handbook of Logistics and Distribution Management:
Understanding the Supply Chain (8th ed.). USA: Kogan Page Limited.

Chopra, S., Meindl P. & Kalra, D.V. (2018) Supply Chain Management: Strategy, Planning and
Operations (7th ed.). India: Dorling Kindersley

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Thank you…

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