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Role of It in Supply Chain Management

The document discusses the role of information technology in supply chain management. It begins by stating that IT is essential for effectively managing today's complex supply chains. While IT investment does not guarantee better organizational performance, it can help firms develop knowledge about customers, suppliers, and demands to influence performance. The document then covers how IT enables integrated supply chain management by making transactions and communications faster. It discusses factors like satisfying customers and reducing inventory that change the importance of IT. Finally, it concludes that companies must harness technology like the internet to collaborate with partners beyond their direct relationships in innovative supply chains.

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443 views

Role of It in Supply Chain Management

The document discusses the role of information technology in supply chain management. It begins by stating that IT is essential for effectively managing today's complex supply chains. While IT investment does not guarantee better organizational performance, it can help firms develop knowledge about customers, suppliers, and demands to influence performance. The document then covers how IT enables integrated supply chain management by making transactions and communications faster. It discusses factors like satisfying customers and reducing inventory that change the importance of IT. Finally, it concludes that companies must harness technology like the internet to collaborate with partners beyond their direct relationships in innovative supply chains.

Uploaded by

tadashad
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 PPTX, PDF, TXT or read online on Scribd
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ROLE OF ( IT ) IN SUPPLY CHAIN MANAGEMENT

Presented By:Chetan Gupta. Mayank Aroa. Kanika Jain. Anshu Khadgawat. Tadasha Das. Nishant Pal

Introduction
The use of IT is considered as a prerequisite for

the effective control of todays complex supply chains. U.S. manufacturers are increasingly dependent on the benefits brought about by IT to improve supply chain agility, reduce cycle time, achieve higher efficiency and deliver products to customers in a timely manner. IT investment in the supply chain process does not guarantee a stronger organizational performance. The adoption of a particular technology is easily duplicated by other firms and it often does not provide a sustained competitive

Continued
The implementation of IT in the SCM of this

study can enable a firm to develop and accumulate knowledge stores about its customers, suppliers and market demands, which in turn influences firm performance. Technologies are helpful to co-ordinate the activities to manage the supply chain. The cost of information is decreased due to the increasing rate of technologies.

Importance of IT in integrated SCM

Earlier supply chain member organization were

paper based and their transaction and communication was slow. IT infrastructure capabilities provides a competitive positioning of business initiative lifecycle time production, implementation. Several well known firms involved in supply chain relationship through information technology.

Factors that change the importance of IT


Satisfying customers. Ability to reduce inventory. Ability to reduce stock turnover ratio. Strategic planning.

Recent development in SCM software


Base rate, carrier select and match pay. Supply chain planning. Transportation network optimization. Logitility planning solution.

E- Commerce
It is term used to describe the wide range of

tools and techniques utilize to conduct business in a paper less environment. It includes electronic data interchange, Electronic fund transfer, image processing, magnetic/optical data capture. Companies are able to automate the process of moving documents electronically between suppliers and customers.

Benefits of Electronic Data Interchange


Quick process to information. Better customer Service. Reduce paper work. Increased productivity. Improved Tracing. Cost Efficiency. Improved Billing.

Bar Coding & Scanner


Bar Code scanners are most visible in the

check out counter of supermarket. This code specifies name of product and its manufacturers.
Other application 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 organizations production system databases. A data warehouse is organized around informational subject rather than specific business processes. Data held in data warehouses are time dependent, historical data may also be aggregated.

Enterprise Resource Planning


ERP is viewed as 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 has achieved 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 assessing data.

Conclusion
Companies will find that their conventional

supply chain integration will have to be expanded beyond their peripheries. The strategic and technological innovations in supply chain will impact on how organizations buy and sell in the future. Internet technology will change the way a company is required to do the business. These companies must realize that they must harness the power of technology to collaborate with their business partners.

THANKYOU .

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