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Information and Technology Application in SCM

The document discusses several topics related to supply chain management including information systems, software applications, electronic commerce, electronic data interchange, bar coding, data warehousing, and enterprise resource planning tools. It provides details on recent developments in supply chain management software, the benefits of electronic data interchange, and how various technologies can help integrate and improve supply chain management.

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67 views

Information and Technology Application in SCM

The document discusses several topics related to supply chain management including information systems, software applications, electronic commerce, electronic data interchange, bar coding, data warehousing, and enterprise resource planning tools. It provides details on recent developments in supply chain management software, the benefits of electronic data interchange, and how various technologies can help integrate and improve supply chain management.

Uploaded by

abhijitpaymal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Information and Technology: Application of SCM: In the development and maintenance of Supply chain's information systems both software

and hardware must be addressed. Hardware includes computer's input/output devices and storage media. Software includes the entire system and application programme used for processing transactions management control, decision-making and strategic planning. Recent development in Supply chain management software is: 1. Base Rate, Carrier select & match pay (version 2.0) developed by Distribution Sciences Inc. which is useful for computing freight costs, compares transportation mode rates, analyze cost and service effectiveness of carrier. 2. A new software programme developed by Ross systems Inc. called Supply Chain planning which is used for demand forecasting, replenishment & manufacturing tools for accurate planning and scheduling of activities. 3. P&G distributing company and Saber decision Technologies resulted in a software system called Transportation Network optimization for streamlining the bidding and award process. 4. Logitility planning solution was recently introduced to provide a programme capable managing the entire supply chain. Electronic Commerce: It is the term used to describe the wide range of tools and techniques utilized to conduct business in a paperless environment. Electronic commerce therefore includes electronic data interchange, e-mail, electronic fund transfers, electronic publishing, image processing, electronic bulletin boards, shared databases and magnetic/optical data capture. Companies are able to automate the process of moving documents electronically between suppliers and customers. Electronic Data Interchange: Electronic Data Interchange (EDI) refers to computer-to-computer exchange of business documents in a standard format. EDI describe both the capability and practice of communicating information between two organizations electronically instead of traditional form of mail, courier, & fax. The benefits of EDI are: 1. Quick process to information. 2. Better customer service. 3. Reduced paper work.

4. 5. 6. 7. 8.

Increased productivity. Improved tracing and expediting. Cost efficiency. Competitive advantage. Improved billing.

Though the use of EDI supply chain partners can overcome the distortions and exaggeration in supply and demand information by improving technologies to facilitate real time sharing of actual demand and supply information. Bar coding and Scanner: Bar code scanners are most visible in the check out counter of super market. This code specifies name of product and its manufacturer. Other applications are tracking the moving items such as components in PC assembly operations, automobiles in assembly plants. Data warehouse: Data warehouse is a consolidated database maintained separately from an organization's production system database. Many organizations 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. Enterprise Resource planning (ERP) tools: Many companies now view ERP system (eg. Baan, SAP, People soft, etc.) as the core of their IT infrastructure. ERP system have become enterprise wide transaction processing tools which capture the data and reduce the manual activities and task associated with processing financial, inventory and customer order information. ERP system achieve a high level of integration by utilizing a single data model, developing a common understanding of what the shared data represents and establishing a set of rules for accessing data.

Q.Discuss Operational integration creates value in supply chain


management The importance of integrated management, it is useful to understand that customers have at least three perspectives of value. The traditional perspective of value is economic value. Economic value builds on economy of scale in operations as the source of efficiency. Economy of scale seeks to fully utilize fixed overhead to achieve the lowest, total landed cost. The focus of economic value is efficiency of product service creation. Economic value is all about doing things as well as possible. The customer takeaway of economic value is high quality at a low price. A second value perspective is market value. Market value is about presenting an attractive assortment of products at the right time and place to realize effectiveness. Market value focuses on achieving economy of scope in productlservice presentation. The creation of multimerchant shopping malls, large-scale mass-merchandising retail stores and multivendor e-commerce fulfillment operations are all initiatives to achieve market value. The customer's take-away in terms of market value is convenient product/service assortment and choice. Realization of both economic and market value is important to customers. However,increasingly firms are recognizing that business success also depends upon a third perspective of value referred to as relevancy. Relevancy involves customization of value-adding services, over and above product and positioning that make a real difference to customers. Relevancy value means the right products and services, as reflected by market value, at the right price, as reflected by economic value, modified, sequenced, synchronized, and otherwise positioned in a manner that creates valuable segmental diversity. In a consumer context, for example, relevancy means transforming ingredients into ready-to-eat meals. In general merchandise retailing, relevancy means transforming products into fashionable apparel. In manufacturing and assembly,relevancy is achieved by integrating specific components into products to increase functionality desired by a specific customer. The customer's take-away in terms of relevancy is a unique product/service bundle. The simultaneous achievement of economic value, market value, and relevancy value requires total integration of the overall

business process and is known as the integrative management value proposition.

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