IT IN SUPPLY CHAIN

MANAGEMENT
TEAM-4
PUDUKUDI SURYA
PARANTHAMAN
AKASH
SANDIYA
RAJAN LAMSAL
MOHAN RAJ
What is a Supply Chain?
 A supply chain is when a person or a company participates in the exchange or delivery of
goods.
 Supply Chain Management (SCM) controls elements of your company to ensure you have a
steady supply of products or services.
 In software terms, it provides a view on how all aspects of your supply chain are working together.
 As long as goods, money, or materials exchange hands you are part of a supply chain.
 A supply chain includes but isn’t limited to:
 Delivered products.
 Relationship management.
 Obtaining raw materials.
 Product development.
 Warehouse management.
 Managing supplier relationships.
 Maintaining the flow of goods.
 Logistics management.
Key Elements of a Modern SCM

 The key elements of SCM can be wide-ranging and varied, and may include:
 Enterprise Resource Planning (ERP) Solutions
 An ERP’s purpose is to manage all transactions in a business.
 This includes but isn’t limited too:
 Shipping orders.
 Receiving inventory.
 Creating bills of lading and packing slips.
 Tracking.
 Allocating transport costs.
 An ERP can even obtain the best-cost transport solution quote online via integration with
package/freight companies.
 A properly implemented ERP is crucial to providing excellent SCM to any mid-size or larger
business.
Electronic Data Interchange (EDI)
 EDI facilitates the integration of external systems by providing a safe, secure way
to exchange data and payment information between companies.
 For example, a shipping manager may need multiple quotes prior to shipping a large
delivery to find the best price.
 They are able to use the company ERP system to ‘find the best quote for order
#12345’.
 Once this command has been given to the system an EDI transfer is initiated. This goes
to a central network to download shipping costs, based on the details of the
shipping order.
 Once the best quote is selected, the shipping manager can then approve the quote,
book the delivery. All in one easy transaction.
 No duplicate data entry, no errors introduced.
 Just quick, easy and convenient.
Transportation Management System (TMS)
 Either as a standalone application or as a module within an ERP, a TMS is crucial
for busy distribution centers.
 A TMS can take over many of the basic functions of the shipping department including:
 Tracking of all types.
 Shipments.
 Load breakdowns.
 Generating manifests.
 Customs paperwork.
 A TMS provides a focused level of shipping functionality that many ERPs lack.
 Designed to work with the internal systems of major carriers, a TMS can automatically
provide updates and transport management.
Warehouse Management System (WMS)
 A WMS manages all operations of a warehouse, including SCM supporting ones
such as:
 Order picking.
 Packing.
 Barcode labeling and reading.
 Tracking in-transit inventory.
 Mobile (truck-based) stock.
 Returns and inventory updating.
 Available as stand-alone or as a module within an ERP, a WMS is crucial for
warehouse operations.
 Using a WMS will help your company provide your product or service in the most
cost-effective way.
The Future of SCM
 he future of SCM is dependent upon access to and sharing of information. This
really applies to information about shipments, costs, regulations, and environmental
factors that impact delivery. By having this information on hand, your business will be
able to handle and predict future problems.
 An SCM is a way of organizing and accessing all of the information that is
important to modern businesses.
 To take advantage of technology and information, an SCM system must:
 Be accessible everywhere.
 Have access to all inventory and account data.
 Have the ability to update information based upon data obtained from carriers.
 Have the security to act as a custodian for confidential data.
 Grow with your company and support additional functionality as it becomes
necessary.
 Provide support for custom elements to provide functionality that is needed by your
company.
WHAT IS ERP?
 ERP stands for enterprise resource planning, which is multi-purpose business
software that can take the place of most or all of the applications used to run a business
today.
 It is designed to help you consolidate all of your company’s business functions into a
single, easy to use application.
 ERP software consists of modules that can be added to a core set of financial
transaction ledgers that include a General Ledger, Accounts Payable, Accounts
Receivable, Bank Accounts Ledgers, etc.
 All transactions are recorded in a single process within the General Ledger (and other
corresponding ledgers as needed) automatically.
 This provides the functionality needed for a company to operate efficiently. By having
a core system in place it saves you time by all departments having access to the same
set of data.
An ERP can manage:
 Your sales – tracking customers, leads and opportunities.
 Operational tasks – production, scheduling, delivery, field services.
 Accounting – accounts payable, accounts receivable, payroll, general ledger.
 Finance – forecasts, reports, ‘what if’ scenario creation.
 Your inventory – min/max levels, multiple locations, mobile inventory management,
kits.
 Manufacturing and fabrication – materials, production scheduling, BOMs.
 Project Management – Work breakdown schedules, resource scheduling, task
management.
 Etc.
 An ERP systems purpose is to provide one central system from which to manage all
aspects of a company.
Origin of ERP
 The term ERP was coined in the 1990’s by the Gartner Group, but the software’s
original concept dates back to the 1960’s when it was called
Material Requirements Planning (MRP). The first concepts for ERP originated with
software designed for the manufacturing sector, since that was the most complicated
business model at the time (probably still is).
 By the 1970’s most manufacturers were using an MRP. The function of the
software was to procure raw materials for manufacturing systems. It also helped
with stock levels and tracking goods.
 The creation of MRP allowed them to:
 Manage inventory.
 Report on manufacturing statuses.
 Track shipped and received produced goods.
 MRP was the main software used by businesses until the 1990’s.
 In 1980 several key features were added to MRP that transformed it into
MRPII. The meaning of the acronym also changed as well. MRP now stood for
Manufacturing Resource Planning.
 The features that were added were:
 The ability to schedule machine capacity.
 Tools to help you forecast demand.
 Quality control.
 Basic accounting tools.
MRP Becomes ERP
 When even more functions were added to MRP, the software split into two different
programs. The new software was named Enterprise Resource Planning systems.
 The features that set apart ERP from MRP were:
 Customer Relationship Management (CRM).
 Supply Chain Management (SCM).
 Human Resources (HR).
 Business goods tracking.
 Marketing automation.
 These features were planned in a way that allows businesses to unite all of their daily
tasks under one software.
 Enterprise resource planning software is what was created to increase the
business performance of today’s entrepreneurs and established corporations. It is
also focused on helping companies save time and money. It does this through a
centralized database and automation.
 ERP has begun transitioning into ERP II with the addition of even more features to
ease the operation of your business.
 ERP II was created with the addition of:
 Supplier Relationship Management (SRM).
 More tools for collaboration with partner companies.
 The software is now hosted on the Cloud.
 Your ERP can now be used anywhere and from any device.
 Increased security.
 It is now a Software as a Service (SaaS).
 Regulatory compliance with new laws.
What Are The Components of an ERP?
 Accounts Payable.
 Accounts Receivable.
 Human Resources.
 Project Management.
 Sales Force automation.
 Marketing automation.
 E-commerce.
 Accounting.
 Finance.
 Forecasting.
 Budgeting.
 Manufacturing.
 Inventory and Warehouse Management.
Business Intelligence (BI)
 Most modern ERPs and ERPIIs include Business Intelligence (BI)
functionality. BI is a set of tools within the ERP that use data to predict
business performance. By using internal and external data sources, BI is set
up to provide past, present, and predictive views on how well your
business is doing.
 BI tools allow for insight into the performance of sales, operations,
production, and finance functions.
 They also let you see how your business compares to others in the field, by
providing and using benchmarking. Benchmarking is where your business
data and milestones are compared to the performance metrics of other
companies.
Cloud-Based ERP VS On-Premises ERP
 Cloud-Based ERP
 With a cloud-based ERP, everything is stored on the cloud and is
reachable from wherever you and your internet connection are. A Cloud-
Based ERP is best suited for small to mid-sized companies who have team
members working from multiple locations, and even all over the world.
 On-Premise ERP
 An On-Site system requires servers to host the database and computers to be
permanently networked for everyone to be able to access the database and
properly have automation. On-Site ERP systems are better suited for large-
scale companies who have an established physical location and a dedicated IT
team.
What is Automation and Digitization?
 n their simplest forms, digitization and automation applications apply to the business
world in this way:
 Automation is using AI or machines to complete tasks that used to be done solely by a
human.
 Digitization is making information (numbers, text, images) digital so it can be
processed by a computer. This concept is often referred to as ‘big data’.
 These two concepts can work alone or in tandem to save time, reduce human errors,
improve safety, and perform tasks more quickly and less expensively than human
labor.
 The impact of digitization and automation in the supply chain has been wide-reaching,
and we have seen their spread among industries over the past forty years, to the point
that there are very few industries that have remained untouched by Big Data and the
Internet.
Automation and digitization are affecting SCM today 

 Almost every aspect of SCM is being impacted by either automation or digitization or

both.
 Sometimes it produces game-change results (see ‘Benefits of Digitization’ below),
and sometimes it’s more subtle, such as reducing fleet accident rates (see
‘Transportation automation’)..
 Benefits of digitization
 Bentek Systems, an industrial wireless SCADA and telemetry solutions manufacturer,
and a client of Aqurus Solutions, was using multiple systems to track product planning,
manufacturing, shipping, accounting, and inventory.
Transportation automation
 It seems that everywhere we turn, there is news about self-driving cars.
 While many are in denial that this technology will replace human drivers anytime soon,
many transportation companies and 3PLs are taking advantage of automation
to improve their own vehicle’s safety and performance, particularly on class 8
trucks.
 Cruise control and automatic braking, lane departure alerts, detection sensors, and
systems that communicate back to HQ if a truck needs maintenance aren’t science
fiction anymore, and many fleets are demanding them on new vehicles.
Big Data on the road

 Information about traffic, potential weather problems, changing regulations

between jurisdictions, and even fuel price variability are all being captured by
multiple parties through the Internet of Things, or IoT.
 Distilling this information and delivering to drivers as they move goods around the
country or the world can improve driving conditions, improve safety, prevent legal
issues, and decrease overall shipping times.
 Upper Lakes Foods, a food distributor out of Minnesota,
implemented an electronic logging system that allows drivers to use their mobile
devices to send maintenance logs directly to HQ.
Global implications

 As links up and down the supply chain branch out across the globe, keeping
tabs on them (and any associated tariffs, regulations, and other costs)
becomes increasingly difficult.
 Digitization has a lot to contribute to this effort as well. Using the IoT to
communicate around the world is a must-have.
 The ability to track what’s coming from where and what’s going where have
never been more important to the health of the logistics companies involved.
Is automation/digitization of the supply chain really
happening?

 There is no doubt that automation and digitization are changing the world we live in
today and will continue to do so for the foreseeable future.
What is Blockchain?
 Most often used in association with cryptocurrencies like BitCoin, blockchain is a digital,
distributed, public-ledger technology designed to record transactions in a secure, tamper-
proof, yet publicly-accessible way that resists tampering or modification.
 So, breaking the components down a little more, we can that Blockchain is:
 Digital. A blockchain ‘system’ can be set up on a public or private blockchain network –
essentially a system of computers that can trade data with each other. Blockchain functionality
can also be integrated into other systems, such as an Enterprise Resource Planning (ERP)
solution.
 Distributed. All transactions in the ‘chain’ of transactions are recorded as a distributed database
on multiple computer systems. As a result of this distribution, the transactions can be reviewed
and validated by multiple parties.
 A public-ledger. In order to maintain transparency, the same blockchain transactions must be
recorded on multiple systems that are accessible by all members of the blockchain system (if a
private network) or public (if a public blockchain network).
 A technology. Blockchain is nothing more than a computer technology that manages
transactions securely. As a result, blockchain applications can be integrated into other systems,
so that all transactions pertaining to your shipment (for example) are registered on your
Enterprise Resource Planning (ERP) solution, as well as on the shipping company and/or the
customer’s logistics management systems.
 Transactions-based. The basic element of a Blockchain is a transaction that is
recorded in exactly the same way on multiple systems that are accessible by different
parties.
 Secure. Blockchain transactions are encrypted so that it is very difficult to change a
transaction’s details. In addition, a blockchain transaction’s encryption key (think of it
like a password to a computer) is based upon the previous transaction’s details – similar
to how some people base passwords on their birth date or another significant number.
Because of this, when a transaction is decrypted to be read, if the previous transaction
has been tampered with, the current transaction will not be readable.
 Tamper-proof. This is done to reduce the probability of tampering, fraud or other
activities that would lower a users’ trust in the system. By providing multiple,
individually accessible copies of the transaction, irrefutable evidence can be obtained
of the details of the original transaction, as it likely won’t be changed on all systems.
 Publicly-accessible. Since all transactions are recorded on multiple systems owned by
different parties, Blockchain transactions are never hidden and always remain available
to the public.
How Was Blockchain Created?

 Blockchain was devised by a mysterious person or people known collectively

as Satoshi Nakamoto, as a means of managing the distribution and financial
transactions history of BitCoin. The details of which were released in a white
paper released in October 2008 entitled “Bitcoin: A Peer-to-Peer Electronic
Cash System”. Very little is known of the origins of the author(s) of the paper
to this day.
What industries will Blockchain Affect?

 According to FutureThinkers, blockchain technology is going to transform

many industries, including
banking and payments, cybersecurity, insurance, charities, voting and governan
ce, healthcare, retail, and logistics and supply chain management
.
 Any industry that records transactions of any sort (financial, logistical,
services-based, etc.) and that will benefit overall from having those
transactions available in a public manner will likely benefit from the
application of blockchain technologies.
How Does Blockchain Work?
 Think of a blockchain as a series of transactions recorded in a ledger, where each
transaction is encoded with the reference number and some details of the previous transaction.
 If you’re interested in a particular transaction (say the date, time and manifest of a given load
of cargo, as well as the carrier), that could all be encoded in a single transaction and registered
on a public ‘chain’ (usually a number of computers spread out over multiple organizations).
 This transaction ‘block’ would also be available on your local system (an
Enterprise Resource Planning (ERP) or other management systems).
 If you had the encryption password (‘key’) for your transaction, you would be able to see all
the details of that transaction.
 Because it was in a blockchain, you would know that a transaction is very difficult to alter
or tamper with. This is because every transaction refers to the previous transaction, so every
transaction in the ‘chain’ would be altered and you (and everyone else on the chain) would no
longer be able to access your own transactions.
 It’s sort of like balancing a checkbook – if an entry is missed, everything is out of
balance.
How Can Blockchain Change the Supply Chain?

 Within a supply chain, blockchain technology could be used to:

 Monitor costs, labor, waste, and emissions at every point of the supply
chain.
 The distributed ledger can be used to verify the authenticity or fair trade
status of products by tracking them from their origin.
 As mentioned above, shipping details could constitute a transaction at every
interaction with a shipment – and your customer(s) would know about it as
well.
 Trigger an action automatically. A related technology called a ‘Smart
Contract’ can be built into a block and be triggered when a certain condition is
met – such as a payment transfer can happen automatically when a shipment
reaches a customer’s location.
Watch Blockchain in Action with Acumatica ERP

 Watch as Ajoy Krishnamoorthy, Acumatica’s Vice-President Platform and

Strategy demonstrates how Blockchain can be used to track serialized inventory around
the globe using Acumatica, and RFID tags during the 2018 Acumatica Summit held in
Nashville, TN (about 2 minutes):

 https://www.youtube.com/watch?time_continue=4079&v=8JNyCqa1KrE
Potential Benefits of Blockchain for Supply Chain
Management

 Implementing Blockchain within a supply chain system has the potential to:
 Increase traceability of shipments within the supply chain.
 Lower losses from fraud and theft.
 Prevent counterfeit goods from entering the supply chain.
 Improve monitoring of conditions in outsourced manufacturing locations.
 Reduce administrative and governmental paperwork and bureaucratic delay.
 Blockchain will enable Supply Chain Managers to control the inputs to their supply
chain to a much greater degree than they are able to do so today, and at a much lower
cost in terms of effort, time, and money.
What is the Outlook for Blockchain Technology in the
Supply Chain?

 A number of major logistics companies have commissioned pilot projects to validate

Blockchain’s potential within the industry, including:
 Walmart Testing Food Safety Tracking in China
 Walmart is teaming up with IBM, Nasdaq-listed Chinese retailer JD.com, and Tsinghua
University National Engineering Laboratory for E-Commerce Technologies to improve
food tracking and safety in China.
 Testing done by Walmart showed that the amount of time it takes to trace a package of
mangoes from farm to store was reduced dramatically. The original process took days
or weeks but by using blockchain technology it was down to 2 seconds.
 Maersk is Tracking Movement of Shipping Cargo and Freight
 Danish shipping giant Maersk’s trial of blockchain to track the movement of
shipping cargo and freight was one of the first major enterprise test announcements.
Its first live trial completed in March 2017, and it has since continued to pursue
innovating with blockchain technology, including exploring its use in
maritime insurance.
 Alibaba Using Blockchain to Track Product Authenticity in Supply Chain
 Also in Asia, Alibaba announced in late 2017 that it has been
quietly developing an in-house private blockchain networkfor the past two years to
track product authenticity in the supply chain and reduce counterfeiting. Geoff Jiang,
Head of Ant Financial’s Innovation Lab stated that with blockchain, “we know where
the product comes from, its source, and which retailer it’s coming from.”
 Vendors Implementing Blockchain
 While blockchain technology is still closely associated with cryptocurrencies, it
is starting to be applied in a wider context as a public ledger.
 Investment in blockchain technology has increased dramatically in the last year and the
trend does not appear to be slowing down.
 Many companies are furiously working towards adopting its use in SCM,
including Provenance, Fluent, SKUChain, and Blockverify.
The type and capabilities of supply chain
technology is expanding, and technology will
only grow more important in effective supply
chain management in 2018.
 The IIoT Will Be Standardised
 Blockchain Technology Will Emerge in Greater Detail
 Supply Chain Visibility Becomes an Independent Technology
 New Devices and Mobile Systems Will Become Integral to Supply Chains
 Automation within Advanced Supply Chain Technologies Will Increase
 Mass Adoption of the Cloud
IT in supply chain

 Blockchain
 IOT
 Drones
 Big Data
 Last Mile
IT in supply chain software

 ERP Vendors
 SAP
 Microsoft Dynamics
 Oracle
 Sage
 SYSPRO
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 serviceReduces 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
THANK YOU