IT

BY: SINDOOR NAIK

ANSH AGARWAL

in

SCM

Supply chain management (SCM) is concerned with the flow of products and information between supply chain members' organizations

WHAT IS SUPPLY CHAIN MANGEMENT?

The IT Boom !Information flow in Supply chain prior to 1990s

The importance of information in an integrated SCM environment:

EDI Benefits of EDI

• Speed• Data transfer in real-time, no time shift (⇒ almost no time shift between

sending and receiving)• Reduction of human failure rate by re-keying data• General cost saving (no more people, no more paper, faster data processing,

etc.)• Reduced purchasing costs• Reduced cost by effective information processing ⇒ rationalization• Greater flexibility• Saved time• Better information• Better collaboration• Higher transparency

What is ERP?

ERP attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments’ specific needs

ERP

Explanation

Logistics

Production

HR

Finance

Marketing & Sales

Enterprise does business and to do business it needs tools

An Enterprise has departments

In early 1970s ……

In 1990s

Drawbacks

Multiple software systems, databases and platforms

No streamlining processes and workflows Redundant data entry and processes No shared information across departments Slow workflow and low efficiency Less customer satisfaction

Solution ?

HIRE SUPERMAN !HIRE A SMART SOFTWARE !“ ERP ”

Moving to ERP

Expensive Customization is limited The system may suffer from weakest link i.e.

an inefficiency in one department can effect other departments

ERP Vendors

SAPMicrosoft DynamicsOracleSageSYSPRO

The Supply Chain’s Strategic Importance

Supply chain management is the integration of the activities that procure materials and

services, transform them into intermediate goods and final products, and deliver them

through a distribution system

Competition is no longer between companies; it is between supply chains

Radio Frequency Tags

Radio Frequency Tags: Keeping the Shelves StockedSupply chains work smoothly when sales are steady, but often break down when confronted by a sudden surge in demand. Radio frequency ID (or RFID) tags can change that by providing real-time information about what’s happening on store shelves. Here’s how the system works for Proctor & Gamble’s Pampers.

Bar Code System (BCS)

The bar code system is an identification technology wherein there is placement of computer-readable codes on items, cartons and containers in the form of grouping of parallel bars (usually blocks) of different widths separated by light spaces (usually white), again, of different widths.

It facilitates speedier flow of logistical information such as quick tracking receipts, movement details, product identification, etc., with a lesser probability of error .

Characteristics of a Typical Bar Code

Benefits of Bar Code System

Speeds up data entry process Enhances data accuracy Reduces material handling labour Minimizes on-hand inventory Monitors labour efficiency Improves customer service

Benefits of Bar Code System

Reduces product recall Verifies orders at receiving and shipping Reduces work-in-process idle time Monitors and controls shop floor activity Improves shop floor scheduling Optimizes floor space Improves product yield or reduces scrap

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