role of it in supply chain management
DESCRIPTION
Shows how IT has changed the way Supply Chain works today. Includes EDI, ERP, Barcode and RFID.TRANSCRIPT
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IT
BY: SINDOOR NAIK
ANSH AGARWAL
in
SCM
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Supply chain management (SCM) is concerned with the flow of products and information between supply chain members' organizations
WHAT IS SUPPLY CHAIN MANGEMENT?
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The IT Boom !Information flow in Supply chain prior to 1990s
The importance of information in an integrated SCM environment:
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EDI Benefits of EDI
• Speed• Data transfer in real-time, no time shift (⇒ almost no time shift between
sending and receiving)• Reduction of human failure rate by re-keying data• General cost saving (no more people, no more paper, faster data processing,
etc.)• Reduced purchasing costs• Reduced cost by effective information processing ⇒ rationalization• Greater flexibility• Saved time• Better information• Better collaboration• Higher transparency
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What is ERP?
ERP attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments’ specific needs
ERP
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Explanation
Logistics
Production
HR
Finance
Marketing & Sales
Enterprise does business and to do business it needs tools
An Enterprise has departments
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In early 1970s ……
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In 1990s
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Drawbacks
Multiple software systems, databases and platforms
No streamlining processes and workflows Redundant data entry and processes No shared information across departments Slow workflow and low efficiency Less customer satisfaction
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Solution ?
HIRE SUPERMAN !HIRE A SMART SOFTWARE !“ ERP ”
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Moving to ERP
Expensive Customization is limited The system may suffer from weakest link i.e.
an inefficiency in one department can effect other departments
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ERP Vendors
SAPMicrosoft DynamicsOracleSageSYSPRO
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The Supply Chain’s Strategic Importance
Supply chain management is the integration of the activities that procure materials and
services, transform them into intermediate goods and final products, and deliver them
through a distribution system
Competition is no longer between companies; it is between supply chains
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Radio Frequency Tags
Radio Frequency Tags: Keeping the Shelves StockedSupply chains work smoothly when sales are steady, but often break down when confronted by a sudden surge in demand. Radio frequency ID (or RFID) tags can change that by providing real-time information about what’s happening on store shelves. Here’s how the system works for Proctor & Gamble’s Pampers.
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Bar Code System (BCS)
The bar code system is an identification technology wherein there is placement of computer-readable codes on items, cartons and containers in the form of grouping of parallel bars (usually blocks) of different widths separated by light spaces (usually white), again, of different widths.
It facilitates speedier flow of logistical information such as quick tracking receipts, movement details, product identification, etc., with a lesser probability of error .
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Characteristics of a Typical Bar Code
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Benefits of Bar Code System
Speeds up data entry process Enhances data accuracy Reduces material handling labour Minimizes on-hand inventory Monitors labour efficiency Improves customer service
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Benefits of Bar Code System
Reduces product recall Verifies orders at receiving and shipping Reduces work-in-process idle time Monitors and controls shop floor activity Improves shop floor scheduling Optimizes floor space Improves product yield or reduces scrap
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THANK YOU