Supply Chain Management

Supply chain Management

A supply chain not only includes the manufacturer and suppliers but also transporters, warehouse, retailer and customer. A supply chain is an extended enterprise where participants in the chain have specific contribution roles to the goal of reaching the customer. The objective of supply chain is to maximize the value of supply chain where value is defined as Final Product worth to the customer less the value of efforts spent in delivering that Product worth

What Is Supply Chain Management?

Information Technology In SCM

Electronic Data Interchange (EDI) EDI is used to link supply chain participants through electronic exchange of documents from one stage to other. The benefit of EDI is a paperless exchange of information, quick access to accurate information, and reduced cycle times.

Bar-coding and Scanning

Barcode is designed to represent the item code and other information. Barcode is labeled or printed on the item. In the event of item being moved for sale, or transfer, items barcode is scanned through barcode reader / scanner and movement record of the item is captured and processed as per the application design.

Data Warehouse and Data Mining

Data ware house is a consolidated business information database for use in strategic decisionmaking, decision support systems, and analysis of business in different dimension. It also has information, which indicates, trends, patterns, behaviors, projections of key business entities such as product, customer, suppliers and so on. Data mining is used to analyze functional information extracted from data warehouse.

Internet / Intranet / Extranet

These are used to network the supply chain partners for communication and information sharing located anywhere in supply chain. The cost of communication or sharing of information is least compared to other modes of communication.

World Wide Web

Web technology is used to store and share information useful for supply chain participants. Website or portal of the organization has product catalogues, magazines, pictures, contents and other documents for viewer to access and use in application of the interest. Web platform is also used for order placement, order tracking, e-buying, and selling so on.

Cases
Hindustan Lever Limited saves $125 million from its supply chain in India. HLL supply chain network is made of 80 manufacturing sites, 56 distribution centers and 3,400 wholesalers. SCM system was able to reduce stock levels from six wheels of sales to less than three week. Maruti Udyog Ltd. Has brought down inventory level of indigenous items from 9 days to 3 days at present

Customer Relationship Management

What Is CRM
Customer Relationship Management Becoming a common and important concept in many industries Beyond mere Contact Management Most industries have CRM software to help sales process, on-going service, and even accounting

CRM

What is CRM? CRM is a comprehensive set of process and technologies for managing the relationships with potential and current customer across the business functions. The goal of CRM is to optimize customer satisfaction and revenue through relationships built between customer and all those who deal with customer. The relationship is built through managing customer initiatives and behavior in such away that customer experience is full of comfort, happiness and satisfaction.

Sales Force Automation

Legend tracking. Contact Management. Order booking and follow up till delivery.

Customer Service
Call centre management. Online help. Internal help desk Knowledge based Expert System.

Marketing Automation System

E-mail response management. E-commerce. Web enabled ordering system. Information sharing with internal and external customers.

Role of IT in CRM (E-CRM) E-CRM provides a means to conduct interactive personalized interaction and communications with the customers in online and real time model. In E-CRM, interaction begins more intelligently using customer intelligence. One can summarize key features of E-CRM as under:
Driven by online data mining tools.

Real time assessment of customer interactions, its analysis and interpretation and strategising the action based on it. Begin to build relationship with customer initiative.

 In E-CRM unlike CRM, every customer initiative is treated separately. Each customer is evaluated in real time using customer intelligence database for action prediction.

The real strength of a CRM or E-CRM is its ability to provide a rich, value added experience to customer on all channels of initiatives namely call centers, Kiosks, retail outlets, ATMs, Self help, and website and portals

Knowledge Management has Following Process

Define, capture, manipulate, store and develop. Develop information systems for knowledge creation. Design applications for improving organization's effectiveness. Create knowledge set, i.e. intellectual capital to increase economic value of the organization.. Distribute and share to concerned.

Cyclic Model of KM
Capture Knowledge Create Knowledge Disseminate Knowledge Manage Knowledge Refine Knowledge

Store Knowledge

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Data Warehousing

A producer wants to know.

Which are our lowest/highest margin customers ? What is the most effective distribution channel? Who are my customers and what products are they buying?

What product prom-otions have the biggest impact on revenue? What impact will new products/services have on revenue and margins?

Which customers are most likely to go to the competition ?

What is a Data Warehouse?

A single, complete and consistent store of data obtained from a variety of different sources made available to end users in a what they can understand and use in a business context.

Information

A process of transforming data into information and making it available to users in a timely enough manner to make a difference.

Data

Wal*Mart System

Number of Rows: Historical Data: Number of Users: Number of Queries:

5 Billions 65 weeks Thousands 60,000 per week

Data Warehouse
A data warehouse is a collection of data that is used primarily in organizational decision making

subject-oriented integrated

time-varying
non-volatile
.

Application-Orientation vs. Subject-Orientation

Application-Orientation
Subject-Orientation

Operational Database
Loans Credit Card Trust Customer

Data Warehouse
Vendor

Product

Activity

Savings

 Subject

Oriented A data warehouse is organized around a

major subject such as customer, products, and sales. Data is organized according to subject instead of application. For example, an insurance company using a data warehouse would organize their data by customer, premium, and claim instead of by different products.
Non-Volatile A data ware house is always a physically separate store of data. Due to this separation, data warehouse do not require transaction processing, recovery, concurrency control, and so on. The data is not updated if changed in any way once it enters the data warehouse, but is only loaded, refreshed and accessed for queries.

Time Varying Data is stored in a data warehouse to provide a historical perspective. Every key structure in the data warehouse contains, implicitly or explicitly, an element of time. The data ware house contains a place of sorting data that is 5-10 yrs old, to be used for comparison, trends and forecasting.

 Integrated A data warehouse is usually constructed by integrating multiple, heterogeneous sources such as relational data base and flat files. When data reside in many separate applications in the operational environment, the according of data is often inconsistent.

Application Areas
Industry Finance Insurance Telecommunication Transport Consumer goods Applicatio n Credit Card Analysis Claims, Fraud Analysis Call record analysis Logistics management Promotion analysis

Data Mining works with Warehouse Data

Data Warehousing provides the Enterprise with a memory

Data Mining provides the Enterprise with intelligence

Data Mining in Use

The US Government uses Data Mining to track fraud A Supermarket becomes an information broker Basketball teams use it to track game strategy Holding on to Good Customers Weeding out Bad Customers

What is Business Intelligence?

Business Intelligence (BI) is about getting the right information, to the right decision makers, at the right time. BI is an enterprise-wide platform that supports reporting, analysis and decision making. BI leads to:

fact-based decision making

single version of the truth BI includes reporting and analytics.

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Why BI? The Five Questions

What happened?

Past

What is happening? Why did it happen? What will happen? What do I want to happen?

Present
Future

Data

ERP

CRM

SCM

3Pty

Black books
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E-Commerce

Profit from selling online Reach customers previously unattainable Professional Approach 24hr shop Cheapest sales channel

Examples
Ryanair.com flights and other products Ireland.com membership Amazon.com - Books and other products eBay.com Auction Cbg.ie - Advertising

Service Internet Banking Billing Greetings/ Messaging

Organization

E-B Model B2C

ICICI
Citibank

B2C

VSNl, MTNL

C2C

What is ERP?
ERP is a solution, which facilitates company-wide integrated information systems, covering all functional areas performs core Corporate activities and increases customer service augmenting Corporate Image

The Past Scenario

Islands of Information Difficult to get timely & accurate information Poor connectivity between different organizational locations Sticking with obsolete technology Resist to change Lack of proven man-power to develop integrated software

Information Islands

Operations Sales

Administrative

Marketing

Finance

Sales

Human Resource

Why ERP?
For Management to know what is happening in the company One solution for better Management For cycle time reduction To achieve cost control & low working capital To marry latest technologies To shun the geographical gaps To satisfy the customers with high expectations To be Competitive & for survival

ERP - Definition
Software solution that addresses the Enterprise needs, taking a process view of the overall organization to meet the goals, by tightly integrating all functions and under a common software platform