Information systems in SC Integration & Management

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Information systems

in SC Integration& Management

Submitted by:-Sanchita Baidya 09609010

Ankita Goel 09609089

Bharti Batra 09609121

15/08/2010 Information systems in SC Integration and Management 1


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Agendum

Introduction

Role of IT in SCM

Review of literature

Application of IT in

SCM

Conclusions

15/08/2010 2Information systems in SC Integration and Management


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Introduction

SCM is dened as the

Integration of key BP from end

user through original suppliers

thatprovides products, services,

& information and hence addvalue for customers and other

stakeholders.

SCM is based on the integration of all

activities that add value to customers

starting from product design todelivery.



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IT in SCM

To overcome the ever-increasing complexity of

the systems driving buyersupplier

relationships.

SCM emphasizes the overall and long-termbenet of all parties on the chain through co-

operation and information sharing.

To reduce uncertainty and enhance shipment

performance of suppliers.



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Classication of the literature on IT in SCM

Five major broad categories focusing on developing an

IT-enabled SCM are:-

(a) Strategic planning for IT in SCM

(b) Virtual enterprise and SCM

(c) E-commerce and SCM

(d) Infrastructure for IT in SCM

(e) Knowledge and ITmanagement in SCM

(f) Implementation of IT in SCM



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(a) Strategic planning for IT in SCM

Developing long-term plans and changes to theirorganization and in turn to improve their

competitiveness.

Organizational restructuring may be required if a

company decides to go for an enterprise resourceplanning (ERP) systems

Manufacturing IS strategic role includes minimizing

manufacturing's negative potential, achieve parity with

competitors, provide credible support to the businessstrategy and pursue a manufacturing-based competitive

advantage.



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Cont....1. MARKETING REASONS OF IT IN SCM

Organizations to have an eective supply chain or physically distributedenterprises.

IS that specically addresses the requirements of leveraging the emergingdevelopments in IT

Includes strategic interests of powerful corporate players and thestruggles of these players for domination in the marketplace.

2. ECONOMIC REASONS

Flexibility and responsiveness are interconnected with cost. IT helps to improve the accurate information ow and in turn accurate

decisions to support the business process in an eort to meet the changingmarket requirements.

Four critical performance measures:- exibility, quality, time & cost.



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3. ORGANIZATIONAL

Strategic planning of IT includes organizational structure, awareness of top

management, BPs, strategic alliances, and IT that influence the overall

performance of IT-enabled SCM.

Emergence of new network technologies and expansion of the Internet can

improve an organizations internal and external communication

capabilities. Organizational design for IT-enabled SCM is flexible.

4. TECHNOLOGICAL

IT-enabled SCM facilitate effective technology transfer between partners in

a network of firms.

Opportunities for a radical redesign of supply chains.



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(b) Virtual Enterprise In SCM

VE/VO is based on developing a network of collaborative firms

with necessary core competencies for reaching the market on time

with right products.

IT is so important in developing and operating a VE/VO. Virtual

enterprise is a network of independent companies, often formercompetitors, who come together quickly to exploit fast-changing

opportunities.

Some of the key factors in virtual enterprise development are IT-

enabled SCM, partnership, virtual enterprise and supply chain, and

virtual enterprise and IT.



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1. PARTNERSHIP

Managerial and cultural aspects of strategic partnershipsin logistics involving such issues as openness toinnovation and trust are just as critical as IT.

2. VIRTUAL TEAMSAND SUPPLYCHAIN

To examine the relationship between all parties along thevalue chain.

Virtual team needs to be built by concentrating onprocess, teaming and technology factors.

3. VIRTUAL ENTERPRISEAND IT

Without IT, one could hardly imagine a virtual enterprisedevelopment.



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(c) E-Commerce & SCM

The Internet helps to manage

supply chain activities.

For example, ERP systems

such as SAP, via Extranets

connect not only different

functions within a firm but

also among the firms supply

chain partners (i.e. suppliers,

distributors, and third party

logistics providers).



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1. PURCHASING

The increased popularity of e-commerce is due to a multitude ofOperational benefits it can bring to purchasing practices. cost savings resulting from reduced paper transactions shorter order cycle time subsequent inventory reduction enhanced opportunities for the supplier/buyer partnership

2. OPERATIONS

Building a dynamic model of the web-based supply chain in eachof the collaborative industrial sectors

Sector-based models and prototypes

3.LOGISTICS

With virtual logistics, the physical and information aspects oflogistics operations are treated independently from each other.



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(d) Infrastructure for IT in SCM

Consists of Internet connectivity, hardware and software including

application systems integration. Two major dimensions that will influence the formation process.

-type of organizational structure and relationships

-Major dimension is the electronic commerce environment.

1. ORGANIZATIONAL

Adaptation of e-business infrastructure involves deep level changes that

affect core elements of an organization.

2. TECHNOLOGICAL

Developments in hardware and telecommunication technologies have

occurred in order to meet the rising demands from companies.



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(e) Knowledge and IT management in SCM

KM is concerned with recognizing and managing all of anorganizations intellectual assets to meet its business objectives.

To improve operational and strategic efficiency and effectiveness.

1. TECHNOLOGYMANAGEMENT

IT such as XML for representing corporate data, ERP infrastructure

that provides support for logistics operations, and web infrastructure

allow B2B commerce successful or SCM.

ERP is increasingly being used as a technology enabler for SCM and

problems associated with its implementation.



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.2. EDUCATIONAND TRAINING

Most important component of any change process in an organization. To implement and subsequently use any IT/IS, workforce needs to be

motivated to work in a transparent and open communication environment. Technologies alone will not help to improve the organizational

competitiveness.

3. IMPLEMENTATION OF IT IN SCM

Integration of the SC activities and processes before development andimplementation of the IS in SCM is needed.

ADAGE(the powerful ERP and SCM solution) is a software solution

designed specifically for the process and hybrid industries. By implementing ADAGE, Cumberland has been able to reduce inventory,

shorten delivery lead-times, improve customer service, and better plan andforecast demand, thereby cutting production costs.



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Implementation of IT in SCM is

ORGANIZATIONAL

Support of top management and overallorganizational structure.

Decisions of a structural nature contain three

dimensions: system competencies, (ii) technology

scope, and (iii) IT alliance.

METHODOLOG

ICAL

Implementation framework included thefollowing steps: (i) develop strategy, (ii)

assessment, (iii) create culture, (iv) prioritize

improvements, (v) plan the change, (vi)

implement improved situation and support

implementation.

HUMANRESOURCE level of education, knowledge in computers,

international exposure, training and education,

reward and employee empowerment and incentive

scheme.



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A framework for the development of IT for effective SCM



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.

IMPLEMENTATION ISSUES OF IT IN SCM

Requires IT knowledgeable managers from all functionalareas.

Before implementing IT, there is a need to look at the

business model and then identify suitable IT systems

required to support the objective of achieving agility in a

supply chain.

BPR has been considered as one of the most important

strategies for streamlining the BP.

BPR and IT compliment each other in their efforts to

achieve dramatic improvements by radical changes.

Lack of case studies and empirical research continue to put

the companies behind in terms of coming forward toimplement various IT for achieving an integrated SCM.



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CONCLUSION

IT is an essential ingredient for business survival and improves the

competitiveness of firms.

The SC activities are driven by the need to streamline operations

to achieve quality service to customers.

A lack of critical review of the literature that would influence thesuccessful application of IT in SCM.

Commercial enterprise information systems require flexibility.

Performance measures and metrics need to be established for

measuring the performance and suitability of IT in SCM.

The alignment between information model and supply chainmodel or objectives needs further investigation.



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May I help you with any

clarifications!!!


Information systems in SC Integration & Management

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