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Supply Chain - Lecture 7 - 18 Dec 21

This document discusses the role of information technology in supply chain management. It begins by defining information technology as the use of computers to process electronic data and information. It then outlines the supply chain IT framework, including customer relationship management, internal supply chain management, supplier relationship management, and the transaction management foundation. The document concludes by discussing the future of IT in supply chains, noting it will enable greater transparency, tracking, forecasting, and automation through tools like artificial intelligence.

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14 views

Supply Chain - Lecture 7 - 18 Dec 21

This document discusses the role of information technology in supply chain management. It begins by defining information technology as the use of computers to process electronic data and information. It then outlines the supply chain IT framework, including customer relationship management, internal supply chain management, supplier relationship management, and the transaction management foundation. The document concludes by discussing the future of IT in supply chains, noting it will enable greater transparency, tracking, forecasting, and automation through tools like artificial intelligence.

Uploaded by

mohamedashraf67ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Supply Chain

Management
ACADEMIC YEAR
2021-2022
Information Technology
in the SC
Outline
1. Role of information in the SC
2. What is the information technology
3. The Role of Information Technology in the Supply Chain
4. The Supply Chain IT Framework
(Macro Processes)
a. Customer Relationship Management
b. Internal Supply Chain Management
c. Supplier Relationship Management
d. The Transaction Management Foundation

5. The Future of IT in the Supply Chain


6. Supply Chain Information Technology in Practice
Role of Information in the SC
•Information is the driver that serves as the “glue” to create a coordinated supply
chain
•Information must have the following characteristics to be useful:
◦ Accurate
◦ Accessible in time
◦ The right kind

•Information plays a key role in all decision phases of the supply chain(Strategic –
Planning – Operation)

•Optimize performance for the entire supply chain


What is the Information Technology (IT)
•Information Technology (IT) integrates various operations carried out by different companies in
the supply chain.

•IT speeds up the business processes and prevents bottlenecks.

•IT allows companies to achieving on-time procurement, shorter inventory, and better efficiency,
especially in manufacturing.

•IT is the use of computers to create, process, store, retrieve, and exchange all kinds of electronic
data and information.
The Role of Information Technology in
SC
•Use of Information Technology in supply chain management provides improved visibility and
accountability.

•Use of technology can bring the necessary transparency into the whole process.

•IT allows the manufacturing companies to have better control over product flow and
information flow across the supply chain.
The Role of Information Technology in
SC
•Information Technology (IT) is:
•Hardware and software used throughout the supply chain to gather and analyze information
•Captures and delivers information needed to make good decisions
•Effective use of IT in the supply chain can have a significant impact on supply chain performance
The Supply Chain IT Framework
(Macro Processes)
Customer Internal Supplier
Relationship Supply Chain Relationship
Management Management Management
(CRM) (ISCM) (SRM)

Transaction Management
Foundation
(TFM)
Customer Relationship Management
(CRM)
The processes that take place between an
enterprise and its customers downstream in
the supply chain
Key processes:
◦ Marketing
◦ Selling
◦ Order management
◦ Call/Service center
Internal Supply Chain Management
(ISCM)
Includes all processes involved in planning for
and fulfilling a customer order
ISCM processes:
◦ Strategic Planning
◦ Demand Planning
◦ Supply Planning
◦ Fulfillment
◦ Field Service

There must be strong integration between the


ISCM and CRM macro processes
Supplier Relationship Management
(SRM)
Those processes focused on the interaction
between the enterprise and suppliers that are
upstream in the supply chain
Key processes:
◦ Design Collaboration
◦ Source
◦ Negotiate
◦ Buy
◦ Supply Collaboration

There is a natural fit between ISCM and SRM


processes
The Transaction Management
Foundation
•Includes basic enterprise resource planning
(ERP) and its components such as financials
and human resources, database, storage,
security, infrastructure, and integration
software.
•Earlier systems focused on automation of
simple transactions and the creation of an
integrated method of storing and viewing data
across the enterprise
•Real value of the TMF exists only if decision
making is improved
The Future of IT in the SC
•IT will play a valuable role in the creation of smarter, better-connected supply chain networks,
offering greater supply chain transparency, real-time tracking, better forecasting, critical
thinking improved judgement, a reduction of inefficiencies, and an increased automation of
repetitive tasks
•Through 2024, 50% of supply chain organizations will invest in applications that support
artificial intelligence and advanced analytics capabilities. The COVID-19 pandemic amplified the
need for supply chain organizations to seek tools that help them make better and more
informed decisions faster
•The ability to integrate across macro processes, and the strength of their ecosystems, will be
keys to success

17-13
Supply Chain Information Technology in
Practice
•Select an IT system that addresses the company’s key success factors
•Take incremental steps and measure value
•Align the level of sophistication with the need for sophistication
•Use IT systems to support decision making, not to make decisions
•Think about the future

17-14
Thank you

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