IT in Supply Chain

Class - 6

Functional roles
Friction less transactions Enhancing collaboration Decision Support Systems Measure supply chain performance

IT in transactions

IT in Collaboration

Collaborative Planning Forecasting & Replenishment

ERP I Vs ERP - II

ERP I
Optimizing Enterprise

ERP II
Optimizing SC from global collaborative perspective All segments including service industry Integrates with customers and vendors Web architecture Global access to data with appropriate user design

Manufacturing & distribution Processes within organization Monolithic Architecture Internal data concept

IT in Decision Support

Groups of decision systems

Strategic
Network design Size Optimal number of suppliers Typically long range in nature Manufacturing scheduling Demand forecasting Supply planning Primarily for optimizing

Tactical

Operational
Day today operations Production Inventory Transportation etc

Operation planning
Demand Planning Production scheduling Inventory Planning Transportation planning

Technologies for DSS

Interface Scheduling algorithm Expert system rules Business warehouse

Historical data analysis Filtering patterns Enhanced decision making skills

Visual composers Graphical user Interface (GUI)

IT in Reporting

Technologies for reporting

Data warehouse
Dump of all transactional data Collects, structures, analyzes these data for patterns and hidden logics Results used to create standardized supply chain processes for better efficiency

Online analytics Dashboards & Scoreboards

Business unit wise Product wise Process wise Ad-hoc queries Interface

Strategic management perspective of IT in SCM

Strategy formulation
SWOT MOSP (mission, objectives, strategies and policies) If objective to control lost sale stock out becomes extra critical and system designed accordingly

Business Process Design

Reengineering

Functional requirements
Data flow capture and tracking capabilities Locating things!!

IT implementation
Sourcing, project planning, implementing, testing, training & handover

Various approaches of implementation

Parallel Approach
Existing and new system operates simultaneously and steadily transforms into new ways of doing business

Big Bang/Cold Turkey approach

Sudden change!! no other option approach

Phased approach Pilot approach

Scaled down version either in terms of functionality or geography

Future Trends

Increased polarization
Standardized products Vs custom made products Big players Vs Small niche players

RFID technology
What is RFID? How does it work?

Future trends
Agent-based supply chain Service Oriented Architecture (SOA)

Interoperability