supply chain management and it

Supply Chain Management:IT in the Supply chain

Rajendran Ananda Krishnan

https://www.facebook.com/ialwaysthinkprettythings


Topics to be coveredIT in the Supply chainIT FrameworkCustomer Relationship

ManagementInternal Supply Chain

ManagementSupplier Relationship

ManagementTransaction ManagementFuture of IT


Role of IT in SCIT consists of tools used for the

purpose of :◦ 1. Gathering of Information◦2. Analysis of Information◦3. Execute upon information to increase

the performance of SC

IT consists of Hard ware, Soft ware and people throughout a SC, that gather, analyze and execute upon Information.

Eyes, ears, sometimes- brain for decision making


Characteristics of Information Information must have the following characteristics,

while making decisions in SC1) Must be accurate – Without information that gives a

true picture of the state of the supply chain, it is very difficult to make good decisions.

2) Accessible in a timely manner – To make good decisions, a manager needs to have up-to-date information that is easily accessible.

3) Must be of right kind – Companies must think about what information should be recorded so that valuable resources are not wasted collecting meaningless data while important data goes unrecorded.

Decisions are about each of the supply chain drivers:: 1) Facility 2) Inventory 3)Transportation 4) Sourcing 5) Pricing


Supply Chain Macro Process( Enterprise SW)

1 •Customer Relationship management -CRM

2•Internal supply Chain

Management-•ISCM

3•Supplier Relationship

Management-•SRM


1 Supplier Relationship Management

( SRM)

2 Internal Supply Chain Management-

(ISCM)

3 Customer Relationship Management-

(CRM)

Transaction Management Foundation TMF

Software Industry commonly calls this as Supply Chain ‘ with out’ Internal SCMOur definition : SC includes SRM+ ISCM + CRM4th Important Building Block is TMF, on which The Macro Process rests. ERP Systems = Integration and Infra structure - Finance+ HR Required for all the 3 Processes –To function and to Communicate

The Macro Processes in a Supply Chain


The Supply Chain Macro ProcessesCustomer relationship

management – Processes that focus on downstream interactions between the enterprise and its customers.

Internal supply chain management- Processes that focus on internal operations within the enterprise.

Supplier relationship management – Processes that focus on upstream interactions between the enterprise and its suppliers.


Marketing: Decision regarding Which customer to Target?

How to target? What product? How to Price?

Sell- Providing Sales force, actual sale,

Order Management-Tracking the

Order, Planning & Executing the

order

Call/ ServiceCentre –

Primary Point of Contact. Helps

customer to place order,

offer products, Order status,

Solve problems

Customer Relationship Management – CRM Macro Process


Customer Relationship ManagementGoal of the CRM macro process is to generate customer demand

and facilitate transmission and tracking of orders. Key processes under CRM are as follows :

Marketing – Involve decisions regarding which customers to target, how to target customers, what products to offer, how to price products and how to manage the actual campaigns targeting customers.

Sell – The sell process includes providing the sales force the information it needs to make a sale and then execute the actual sale.

Order management – Important for the customer to track his order and for the enterprise to plan and execute order fulfillment.

Call/service center – Helps customers place orders, suggests products, solves problems, and provides information on order status.

Eeg. Of CRM software – Siebel, Salesforce.com, SAP and Oracle.


Strategic Planning- Net work design of

SC

Supply Planning- Factory Planning & Inventory Planning

By Supply Pl Software

Field Service- based on spares Inv, Scheduling

Ser calls

Fulfillment- Links Each Order to a specific supply source and

means of Transportation

Internal Supply Chain Management

Successful ISCM Software providers have helped to improve ‘ Decision Making. But Integration between CRM and ISCM , CRM and SRM will have future Opportunities.


Internal Supply Chain ManagementVarious processes included in ISCM are as follows : Strategic Planning – focuses on the network design of the

supply chain. Demand planning – consists of forecasting demand and

analyzing the impact on demand of demand management tools such as pricing and promotions.

Supply planning – Factory planning and inventory planning capabilities are typically provided by supply planning software.

Fulfillment – Links each order to a specific supply source and means of transportation.

Field service – Service processes focus on setting inventory levels for spare parts as well as scheduling service calls.

Exg. Of ISCM software – i2 Technologies, Manugistics, SAP and Oracle.


Supplier• SRM

System

Enterprise• ISCM

System

Customer• CRM

System

Supplier Relationship Management


Supplier Relationship ManagementDesign CollaborationSourceNegotiateBuySupply collaborationEg of SRM Software – Agile,

MatrixOne, Ariba, SAP, Oracle.


SRM ISCM

CRM

Design Collaboration

SourceNegotiate

Buy

Supply Collaboration

Strategic Planning

Market

Demand PlanningSupply Planning

Fulfillment

Field Service

SellSellCall Center Order Management

TMF

The Macro Processes and their Processes


Transaction Management Foundation (TMF)During early 1990s, ERP systems were popular.

SAP continued as the market leader, but other powerful ERP players included Oracle, Peoplesoft, JD Edwards and Baan.

Little focus was on 3 Macro processes, and soft ware application on ‘improved decision making’

Automation and Building Transaction Management were given importance.

Automation of simple transaction and Integration of store and view of data process

excelled in ‘division and enterprise level’.


Now and FutureDuring 1990s, ERP companies became

largest enterprises due to huge demand – they included SAP, ORACLE, PEOPLE SOFT, JD EDWARS and BAAN.

Real value of ‘Transaction Management Foundation’(TMF) was realized when decision making with in Supply Chain was improved.

Firms focused on decision making on these 3 Macro Processes- Realignment of ERP into CRM, ISCM and CRM. This is the trend NOW and in FUTURE.


FUTURE OF ITTwo potential paths, for companies to

enter the market:1. Through Superior Functionality –

specific for a particular Industry- with ease of use.

2. Through Integrated Product linking 3 Macro Processes

Difficult for start-up companies, Large companies with tremendous resources can take this path, obviously Microsoft.


RFID Technology Radio-frequency identification (RFID) is the use of a

wireless non-contact system that uses radio-frequency electromagnetic fields to transfer data from a tag attached to an object, for the purposes of automatic identification and tracking. The tag contains electronically stored information which can be read from up to several meters (yards) away. Unlike a bar code, the tag does not need to be within line of sight of the reader and may be embedded in the tracked object.

RFID tags are used in many industries. An RFID tag attached to an automobile during production can be used to track its progress through the assembly line. Pharmaceuticals can be tracked through warehouses. Livestock and pets may have tags injected, allowing positive identification of the animal. RFID identity cards can give employees access to locked areas of a building, and RF transponders mounted in automobiles can be used to bill motorists for access to toll roads or parking.


Thank You

supply chain management and it

Business

supply chain

decision making

macro processes

3 macro processes

actual sale

planning

order

tag