Supply_Chain

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 Agendum Introduction Role of IT in SCM Review of literature Application of IT in SCM Conclusions 15/08/2010 Information systems in SC Integration and Management 2 Introduction SCM is de¿ned as the Integration of key BP from end user through original suppliers that provides products, services, & information and hence add value for customers and other stakeholders. SCM is based on the integration of all activities that add value to customers starting from product design to delivery. 15/08/2010 Information systems in SC Integration and Management 3 IT in SCM To overcome the ever-increasing complexity of the systems driving buyer±supplier relationships. SCM emphasizes the overall and long-term bene¿t of all parties on the chain through cooperation and information sharing. To reduce uncertainty and enhance shipment performance of suppliers. 15/08/2010 Information systems in SC Integration and Management 4 Classi¿cation 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 IT management in SCM (f) Implementation of IT in SCM 15/08/2010 Information systems in SC Integration and Management 5 (a) Strategic planning for IT in SCM Developing long-term plans and changes to their organization and in turn to improve their competitiveness. Organizational restructuring may be required if a company decides to go for an enterprise resource planning (ERP) systems Manufacturing IS strategic role includes minimizing manufacturing's negative potential, achieve parity with competitors, provide credible support to the business strategy and pursue a manufacturing-based competitive advantage. 15/08/2010 Information systems in SC Integration and Management 6 Cont.... 1. MARKETING REASONS OF IT IN SCM Organizations to have an e ective supply chain or physically distributed enterprises. IS that speci¿cally addresses the requirements of leveraging the emerging developments in IT Includes strategic interests of powerful corporate players and the struggles 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 Àow and in turn accurate decisions to support the business process in an e ort to meet the changing market requirements. Four critical performance measures:- Àexibility, quality, time & cost. 15/08/2010 Information systems in SC Integration and Management 7 3. ORGANIZATIONAL Strategic planning of IT includes organizational structure, awareness of top management, BP¶s, 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 organization¶s 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. 15/08/2010 Information systems in SC Integration and Management 8 (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 former competitors, who come together quickly to exploit fast-changing opportunities. Some of the key factors in virtual enterprise development are ITenabled SCM, partnership, virtual enterprise and supply chain, and virtual enterprise and IT. 15/08/2010 Information systems in SC Integration and Management 9 1. PARTNERSHIP Managerial and cultural aspects of strategic partnerships in logistics involving such issues as µµopenness to innovation¶¶ and µµtrust¶¶ are just as critical as IT. 2. VIRTUAL TEAMS AND SUPPLY CHAIN To examine the relationship between all parties along the value chain. Virtual team needs to be built by concentrating on process, teaming and technology factors. 3. VIRTUAL ENTERPRISE AND IT Without IT, one could hardly imagine a virtual enterprise development. 15/08/2010 Information systems in SC Integration and Management 10 (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). 15/08/2010 Information systems in SC Integration and Management 11 1. PURCHASING The increased popularity of e-commerce is due to a multitude of Operational 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 each of the collaborative industrial sectors Sector-based models and prototypes 3. LOGISTICS With virtual logistics, the physical and information aspects of logistics operations are treated independently from each other. 15/08/2010 Information systems in SC Integration and Management 12 (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. 15/08/2010 Information systems in SC Integration and Management 13 (e) Knowledge and IT management in SCM KM is concerned with recognizing and managing all of an organizations intellectual assets to meet its business objectives. To improve operational and strategic efficiency and effectiveness. 1. TECHNOLOGY MANAGEMENT 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. 15/08/2010 Information systems in SC Integration and Management 14 2. EDUCATION AND 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 and implementation 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 and forecast demand, thereby cutting production costs. 15/08/2010 Information systems in SC Integration and Management 15 Implementation of IT in SCM is ORGANIZATIONAL Support of top management and overall organizational structure. Decisions of a structural nature contain three dimensions: system competencies, (ii) technology scope, and (iii) IT alliance. Implementation framework following steps: (i) develop assessment, (iii) create culture, improvements, (v) plan the implement improved situation implementation. included the strategy, (ii) (iv) prioritize change, (vi) and support METHODOLOGICAL HUMAN RESOURCE level of education, knowledge in computers, international exposure, training and education, reward and employee empowerment and incentive scheme. 16 15/08/2010 Information systems in SC Integration and Management A framework for the development of IT for effective SCM 15/08/2010 Information systems in SC Integration and Management 17 . IMPLEMENTATION ISSUES OF IT IN SCM Requires IT knowledgeable managers from all functional areas. 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 to implement various IT for achieving an integrated SCM. 15/08/2010 Information systems in SC Integration and Management 18 . 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 the successful 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 chain model or objectives needs further investigation. 15/08/2010 Information systems in SC Integration and Management 19 May I help you with any clarifications!!! 15/08/2010 Information systems in SC Integration and Management 20