Presentation Supply Chain in Information Technology

8/12/2019 Presentation Supply Chain in Information Technology

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Presented By :

MOHAMAD FIQRY BIN ZULKEFLI

MUHAMMAD NAJIB BIN SAHABUDIN

MOHD SYUKRI BIN MOHD NOOR

NORFIRDAUS BIN SAHRIL

MUHAMMAD NOR SYAIFUL BIN MOHDSOLEHIM

PREPARED FOR: MR. PUNNOSE KOVOOR



Information is crucial to the performance of

supply chain because it provides the basis on

which supply chain managers make decisions.

Information Technology consists of the tools

used to gain awareness of information,

analyze the information and execute on it to

increase the performance of the supply chain.



Information is a key supply chain driver

because it serves as the glue that allowsother drivers to work together with the goalof creating an integrated, coordinated

supply chain.Information makes the supply chain visible

to a manager. With the visibility, a managercan make decisions to improve the supply

chains performance.



Managers must understand how information is

gathered and analyzed. This is where IT comesinto play as IT consists of the hardware,

software and people throughout a SC that

gather, analyze and execute upon information.Thus, the organization needs to be connected

and become able to share information in real

time and instantaneously. This is not achievable

without IT and the tools it offers for

organization wide collaboration.



Functional Roles of IT in SCM

Functional Roles Of IT

Transaction

Execution

Collaboration &

Coordination

Decision

Support



The most typical role of IT in SCM is

reducing the function in transactions betweensupply chain partners through cost-effectiveinformation flow.

IT is viewed to have a role in supporting the

collaboration & coordination of supplychains through information sharing.

It can be used for Decision Support. In thisinstance the analytical power of computers is

used to provide assistance to managerialdecisions.



1) Providing information, Availability &Visibility.

2) Enabling single point of contact of data.

3) Allowing decisions based on total supplychain information.

4) Enabling collaboration with supply chain

partners.



Information Technology for Supply

Chain Management

• Software Systems

• Enterprise Resource Planning (ERP)

• Electronic Data Interchange ( EDI )• Supply Chain Management Systems (SCM)

• Customer Relationship Management (CRM)

• Network Infrastructure

• Internet



Origins of ERP Systems

ERP systems grew out of a function called materialsrequirements planning (MRP) which was used to allocate

resources for a manufacturing operation

MRP systems software ultimately became very complex

allowing for efficiencies of scale not previously possible

Even more sophisticated MRP II systems began to

replace MRP systems in the 1980s

By the early 1990s, other enterprise activities were being incorporated into ERP systems



Enterprise Resource Planning Systems

Enterprise resource planning (ERP) is a term

used to refer to a system that links individual

applications (for example, accounting andmanufacturing applications) into a single

application that integrates the data and

business processes of the entire business.



ontd

ERP is a s/w that aims to serve as a backbone for

the whole business.

It integrates key business & management

processes to provide an integrated view of the

entire organization & the activities that take place

within it.

ERP systems have emerged to automate business

functions and offer an integrated data solution

across an org‟s infrastructure.



contd

It provides the capability to manage & integratethe information & services of departmentsthroughout an entire enterprise.

This allows org‟s to better manage all their

resources, thus achieving cost reduction andefficiency through the integration of allinformation among various business processes.

By combining all the operations within the firm,ERP allows co‟s to view the information, cashand material flow.



• SAP R/3

• Oracle

• PeopleSoft (have been merged by Oracle)

• Toyota uses PeopleSoft and SAP

• Microsoft Dynamics (formerly Microsoft

Business Solutions )



EDI is the computer-to-computer exchange of businessdata in standard formats.

In EDI, information is organized according to a specified

format set by both parties, allowing a “hands-off” computer transaction that requires no human interventionat either end.

EDI standards are developed & managed by the

Accredited Standards Committee (ASC) X12. Thestandards are designed to work across industry & co.

boundaries.



It permits hundreds of unrelated co‟s to communicate &

process business transactions electronically.

EDI works because it relies on a standard system that

everyone can use, developed under the guidelines of the

American National Standard Institute (ANSI), USA.

The ANSI committee ensures that everyone using a

process such as EDI follow the same rule & methods,making the Programme Universally accessible.



Following are the benefits of using EDI:-

• Better inventory management.

• Increased productivity.

• Reduced costs.

• Improved business relationships.

• Improved accuracy.

• Enhanced customer service.

• Increased sales.



• SCM is the process of effectively

managing the components of an extended

value chain — from suppliers, throughmanufacturing and distribution chain, and

to the consumers.

• SCM information systems use technology

to more effectively manage supply chains



• A typical SCM system might address the

following issues:

•

Planning• Vendor selection

• Manufacturing

•

Logistics• Customer relationship



• The two basic types of SCM system software are:

• Supply Chain Planning software (SCP): Uses

mathematical models to predict inventory levels

based on the efficient flow of resources into the

supply chain

• Supply Chain Execution software (SCE): is used

to automate different steps in the supply chain suchas automatically sending purchase orders to

vendors when inventories reach specified levels



i2 Technologies

i2‟s strength began with its powerful

Advanced Planning and Scheduling

(APS)

Manugistics

Oracle SAP

Advanced Planner and Optimizer

(APO)



Spacenet



THE KEY ENABLER: ONE SYSTEM

SAP R/3 Single Central

Database

Financial Accounting

Controlling

Fixed Assets

Mgt.

Workflow

Exec. Information & Report

Writer

Materials Mgt.

Sales & Distribution

Production

Planning

Quality Mgt.

Project System

Plant Maintenance

Human Resources

FI

CO

AM

PS

MM

PM

HR

WF

PP

SD

QM

SAP R/3

Omni-functional

Fully integrated

Process-oriented

1



Customer relationship management (CRM)

systems, sometimes called e-CRM systems, use

technology to help an e-business manage its

customer base .CRM allows an e-business to match customer

needs with product plans and offerings, remind

customers of service requirements, and

determine what products a customer has

purchased .



SCM ERPCRM

Broader SCM



Internet has a profound impact on SCM. The backbone

of SCM is communication & real-time information

exchange between various parties involved in the

production & distribution of materials.Following are the various SCM activities that have

created new Internet opportunities:-

• Online Vendor Catalogue (without human contact).

• The ability to schedule outbound logistics.



• Provide world wide customer service (24X7).

• Receive orders from all over the world all the time.

• Place bids on projects.

• Pay invoices electronically.• The ability to directly communicate.

• The ability to be more responsive to customer service problems.

• To reduce service costs & response time.



The SCM data in a SC resides in several different basicsystems, so it is essential to carefully examine the abilityof a software package to be integrated with existingsystems.

The greatest advantage of SCM software is to be able toexecute & evaluate decisions real time.

It is especially important that users can perform „what-if‟

scenarios & evaluate the effects of changes. This requires planning & control of SC‟s. SCM s/w provides thesefeatures.



1) Successful companies have developed focused E- business solutions for improving customerservice elements that are most important in their

business.2) Improved efficiency allows company personnel's

to focus more on the critical business activities.

3) E-business solutions support planningcollaboration & improved agility of the supplynetwork.



4) The use of E-business solutions

improve the information quality.

5) To gain strategic benefits, the use

of IT has to be coupled with

process re-design.



SCM & IT are inseparable &incomplete without one another. IT,

Internet & it‟s tools have enabled supplychain to prosper & become an aid to theSCM manager. The IT tools combinedwith each other provide an ability to thesupply chain manager to take informeddecisions in real time.



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Presentation Supply Chain in Information Technology

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