PRESENTATION ON IT ENABLED SUPPLY CHAIN MANAGEMENT

To Prof. By

Shantanu Singh BFT 5th SEM 7/12/12

Supply Chain Management

Introduction As the world is witnessing intense competition among domestic as well as international players, the Click to edit Master subtitle style companies with quick and accurate decision maker are at the winning forum. For this companies need improved and correct information , which would help 7/12/12 them to achieve greater profit

The Supply Chain

Supply chain management is the integration of the activities that procure materials and services, transform them into intermediate goods and the final product, and deliver them to customers Competition is no longer between companies; it is between supply chains 7/12/12

Concept of Supply Chain Management

q

Supply

Means providing goods and services , whether directly or indirectly dealing with the final user or working with the motive of providing goods or services to the user.
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Chain

The link between the supplier and 7/12/12 the final user of the goods and services

Management

The act of improving efficiency and effectiveness of goods , services , and knowledge across all the stake holders with the goal of reducing total cost and obtaining competitive advantage is known as management. The SCM is an art of managing a network facility and distribution option that perform the function of procurement of material , transformation to intermediate and finished goods and distribution of these finished products to the consumer with 7/12/12

Activities of Supply Chain Management

1. 2. 3. 4. 5. 6. 7. 8.

Important activities include determining Transportation vendors

Credit and cash transfers Suppliers Distributors Accounts payable and receivable Warehousing and inventory Order fulfillment Sharing customer, forecasting, and production information.
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E- Enabled SCM
The internet waves of E-business has highly influenced the traditional SC , by enhancing co-ordination and communication b/w the partners and consumers. This has removed the roadblocks of info. sharing making the organization smarter every day. Rapid evolution of digital market place or hubs which allows buyer and seller to come closer in a single 7/12/12 multi dimensional market place that

Areas where ITenabled SCM works

E-business has enhanced SC efficiency and responsiveness by sharing real time information. The areas where SCM works are
Precise Inventory Visibility Instant Distribution Tracking

Capability
Linking the Customer and supplier

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Tools For SCM

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EDI (Electronic Data Interchange)

Computer to computer direct transfer of standard documents through electronic media b/w the firms.
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Intranet

Intranet is similar to internet network inside the organization, connected through LAN or WAN. It improves the communication and internal management by enhanced knowledge sharing.
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q Extranet
Extranet combines the privacy and security of intranets with global reach of the internet access to outside business suppliers and customers , to controlled position of the enterprise network. These are the networks that uses internet technology to interconnect the intranet of the business with its customers suppliers and others.

q Business to Business
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Collaborations

Functions of SCM
A.Supply Management
. Reduce the no. of suppliers . Decrease Purchase order processing

cost

. Increase in profit with less employs . Reduces order processing cycle time

B. Inventory Management
. Less documentation work . Reduce inventory level . Improve inventory turn 7/12/12

C.

Distribution Management

Easy movement of documents Improve resource planning

D.

Channel Management

Quickly gives information about

cahnging conditions and services retailers

Identify changes related to product To contact different distributers and

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E. Payment Management
Reduces clerical errors Lowers transaction cost Increases no. of invoices procedure. On time payment Collection
F.

Financial Management
their in FOREX.

Enable global company to manage Helps in managing risk in global

financial market.

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Sales Productivity Management

G.

Improve continous communication

channels.

Improves in customer relationship process.

Advantages of ITenabled SCM

Fast access to information 7/12/12 product acquisition cost Low

K N A H U T O Y
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