A STUDY ON APPLICATIONS OF I.

T IN SUPPLY CHAIN MANAGEMENT IN MANUFACTURING SECTOR

A DISSERTATION PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MBA DEGREE OF BANGALORE UNIVERSITY

MASTER OF BUSINESS ADMINISTRATION

Submitted by ABHIRAM.P Reg. No. 05XQCM6002

Under the guidance of Mr. B.Srinivasan Professor, MPBIM

M.P.Birla Institute of Management

Associate Bharatiya Vidya Bhavan
Race course road

BANGALORE - 560001

STUDENTS DECLARATION
I hereby declare that the research work embodied in the dissertation titled A STUDY ON APPLICATIONS OF I.T IN SUPPLY CHAIN MANAGEMENT IN MANUFACTURING SECTOR, has been carried out by me under the guidance and supervision of Prof. B.SRINIVASAN, Professor, M.P.Birla Institute of Management, Bangalore in the academic year 2006 2007. I also declare that this dissertation has not been submitted to any University/Institution for the award of any Degree/Diploma.

Place: Bangalore Date:

ABHIRAM.P (05 XQCM 6002)

GUIDES CERTIFICATE
I hereby declare that the research work embodied in the dissertation titled A STUDY ON APPLICATIONS OF I.T IN SUPPLY CHAIN MANAGEMENT IN MANUFACTURING SECTOR, has been undertaken and completed by ABHIRAM.P (Reg. No. 05 XQCM 6002) under my guidance and supervision during the academic year 2006 2007. I also certify that he has fulfilled all the requirements under the covenant governing the submission of dissertation to the Bangalore University for the award of MBA degree.

Place: Bangalore Date:

Prof. B.SRINIVASAN (Professor, MPBIM)

PRINCIPALS CERTIFICATE
I hereby certify that the research work embodied in this dissertation, titled A STUDY ON APPLICATIONS OF I.T IN SUPPLY CHAIN MANAGEMENT IN MANUFACTURING SECTOR has been carried out by ABHIRAM.P (Reg. No. 05 XQCM 6002) under the guidance of Prof. B.SRINIVASAN, Professor, MPBIM, during the academic year 2006 2007.

Place: Bangalore Date:

Dr. N. S. MALAVALLI (Principal MPBIM, Bangalore)

ACKNOWLEDGEMENT
I take this opportunity to sincerely thank Prof. B.SRINIVASAN (PROFESSOR, MPBIM), Project Guide, for his significant advice and help to carry out this project I also thank Dr N.S. MALAVALLI (PRINCIPAL, MPBIM) for giving me the opportunity to explore my areas of interest by consistently lending support in terms of his expertise and also supplying valuable inputs in terms of resources every step of the way. Lastly, I would like to express my heart-felt gratitude to my Friends and Family who stood by me right throughout this project and have been a constant source for support and strength.

Place: Bangalore Date:

ABHIRAM.P (05 XQCM 6002)

CONTENTS
1 EXECUTIVE SUMMARY INTRODUCTION 2
2.1 2.2 2.3 2.4 BACKGROUND OF THE PROBLEM STATEMENT OF THE PROBLEM NEED & IMPORTANCE OF THE STUDY OBJECTIVES OF THE STUDY 2 2 2 2 1

REVIEW OF LITERATURE 3
3.1 3.2 3.3 INTRODUCTION IT IN SCM INDIAN MANUFACTURING SECTOR 3 9 30

RESEARCH METHODOLOGY 4
4.1 4.2 4.3 4.4 4.5 TYPE OF RESEARCH SAMPLING TECHNIQUE SAMPLE SIZE SAMPLE DESCRIPTION SOURCES OF DATA 34 34 34 34 36

DATA ANALYSIS & INTERPRETATION 5

5.1 5.2 5.3 DATA PRESENTATION HYPOTHESIS CONCLUSION FROM THE ANALYSIS 37 45 48

6 7 8 9 10 11

IMPLICATIONS SUGGESTIONS CONCLUSION INSTRUMENTATION TECHNIQUE BIBLIOGRAPHY APPENDIX

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50 51 52 55 56

LIST OF TABLES
LIST OF THE COMPANIES CONSIDERED FOR THE STUDY 35

HYPOTHESIS

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LIST OF GRAPHS
IT TOOLS USED IN COMPANIES 37

INTRA FIRM INFORMATION SYSTEMS

38

NATURE OF PORTAL

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MODE OF INTERNET ACCESS

40

IT CONNECTIVITY BETWEEN TRADING PARTNERS

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MODE OF EXCHANGE OF INFORMATION BETWEEN SUPPLY CHAIN PARTNERS

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TYPE OF ARCHITECTURE USED

43

NETWORKING USED

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1. EXECUTIVE SUMMARY
The project mainly deals with the applications of IT in supply chain management. Supply Chain Management or SCM as it is popularly known seems to have become the all important focal point for business success. It has gained enormous importance and continues to be a buzzword in the Industry. Today, organizations are increasingly realizing that in the intensely competitive world, one has to keep the chain lean and responsive. Use of IT in a companys supply chain helps the company in linking the suppliers, OEM, distributors and customers by a suitable information system for controlling and coordinating the supply and distribution flow of services, products, and related information across border in order to achieve optimum productivity, overall satisfaction and joyful relation at cheaper cost. For the purpose of the study, a sample of 30 companies belonging to the manufacturing sector is considered and the extent to which IT is used in the supply chains of these companies is measured. These companies employed various IT solutions like ERP, RFID, Barcodes etc in their supply chains, suitable to their respective businesses, which helped them in improving the efficiencies of their supply chains.

2. INTRODUCTION
2.1 BACKGROUND OF THE PROBLEM Many organizations are using the IT tools at different levels of the supply chain management process. The effect of using these IT tools depends on how efficiently the organizations are making use of these tools. There is chance that an organization might have adopted all the technologies. But many organizations lag behind in adopting IT in their supply chain processes. This study is aimed at identifying the level of IT that is being used in the organizations.

2.2 STATEMENT OF THE PROBLEM To what level IT is being used in supply chain operations, by companies belonging to the manufacturing sector? This research aims at studying the level to which, IT applications are being used by companies operating in the manufacturing sector.

2.3 NEED & IMPORTANCE OF THE STUDY It is known that in this era of IT more and more organizations in the manufacturing sector are adopting IT applications in their supply chains. But the extent to which these are organizations are adopting IT in their operations and the various kinds of IT tools used are not known. So, there is an ample for research in this area.

2.4 OBJECTIVES OF THE STUDY Specifically the following objectives have been set for the research investigation: To identify the IT applications that are being used in supply chain management by organizations in the manufacturing sector. To study how supply chains have been integrated with the help of IT.

3. REVIEW OF LITERATURE
3.1 INTRODUCTION Supply Chain Management or SCM as it is popularly known seems to have become the all important focal point for business success. It has gained enormous importance and continues to be a buzzword in the Industry. Today, organizations are increasingly realizing that in the intensely competitive world, one has to keep the chain lean and responsive. Supply chain as a concept is definitely here to stay and it implies a new way of looking at things by questioning the existing boundaries. What exactly is Supply Chain? There are various ways to look at supply chain. One can say that it starts from the raw material vendor and ends with the consumer; thus, it includes purchasing, marketing and even consumer buying the product. Therefore all the processes involved in the entire spectrum from demand generation to demand satisfaction can be called as supply chain management. Today, in some advanced companies supply chain extends right from the vendor procuring his raw material to the point of sale where the last sale of the product takes place. This implies that there is transparency and information flow in the entire chain resulting in appropriate action at each point. This action by each entity contributes to the smooth functioning of supply chain. In some companies supply chain could only be internal i.e. across the manufacturing facilities to company owned depots. One can always choose a part of the supply chain that is most relevant and focus resources to achieve increased productivity. The benefits of supply chain could vary from organization to organization. Key benefits could be achieving higher channel partner satisfaction by reducing inventory, reducing inventory levels, reducing stock out situations by balancing inventory, reducing transportation, storage and damage/expiry costs, meeting delivery lead times and achieving greater accuracy in the planning process through automation.

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Importance of SCM This recent popularity of supply chain is a simple result of advances in technology and competition. In todays world barriers across countries have become almost invisible as far as trade and technology are concerned. Today, the industry is facing immense competition and also has access to the advanced world-class technology. This coupled with the sky-high expectations of the company stakeholders calls for a new way of doing old things. The emergence of the concept of supply chain is a result of this external pressure. Earlier one would look at supply chain in parts, i.e. marketing, manufacturing, logistics, purchase, distribution, transportation and so on. Each function had a different set of people working with a particular objective in their minds. This objective was not necessarily common across people and led to very little interaction across functions. People were encouraged to be experts in their own functions and this helped in achieving functional excellence. You could hear somebody say that company X excels in manufacturing where as company Y excels in distribution or purchasing. Being excellent in even one of these functions could give a company an edge over competition. However, a further improvement in any of these functions will no longer yield substantial business benefits. Therefore, a time has come to integrate all functions with a view to achieve overall excellence. Probably this is why supply chain has suddenly become an all-important arena where all the action is. Simultaneously, advances in technology have fuelled the growth of supply chain solutions. Thus, one can look at overall supply chain by eliminating/simplifying many mundane activities. In fact, if you observe the emergence of supply chain, it has come only after ERP has become a must have from a can have for the corporate world.

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DIAGRAMATIC REPRESENTATION OF SUPPLY CHAIN MANAGEMENT PROCESS

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SCM & Technology The data that was available earlier say only say once in a month is available online today. And not only that, all those complex calculations done using paper and pencil are just a matter of seconds. One no longer needs to spend energy on getting and correcting data but correct information is available online as per requirements. Also, by just one click one can do calculations that would probably have taken say a day earlier. The results could also be far superior due to the sheer number of permutations that a human mind may not be able to comprehend and also eliminates possibility of human error at various instances. Also, the system facilitates usage of advanced planning or optimization algorithms to achieve a very high quality output. However, this can be made possible only if one begins to appreciate the huge implications of a supply chain project and invites the change by working towards building a system that fulfills the organizational needs. Even though it may sound clichd, the concept of supply chain comes as a tool or rather a weapon to fight out all the inefficiencies and give real business benefits in measurable numbers. One can rise above the mundane activities as they can be easily left to the system and give a higher share of mind to more productive activities that include modeling and using the system intelligently to add value to the company. What does a Supply Chain approach imply? The above holistic perspective is extremely essential when any organization wants to move towards a supply chain approach. Supply chain is after all a way of thinking i.e., doing the same old things in a new way. However, one has to remember that supply chain is not as simple as it appears. Supply chain implies everything right from re-looking at the organization structure to changing peoples mindsets across levels. It could also need an advanced technology like an APO or an i2 but this in itself can help an organization only a small way. It also includes empowering people with new skills on all fronts, technological inputs, analytical inputs etc. Various training sessions could be

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required along with change management inputs as this not only calls for learning, mastering and liking a new complex system but it also means changing attitudes for which beliefs need to be changed. Over the years, people have formed and arrived at a set way of working which is considered to be the best. Thus, working with a new system which is complex initially and which calls for new learning can face a lot of resistance. A lot of drive and commitment from the top management will be required in the initial phase if the entire organization has to succeed on this supply chain journey. It will not be easy at all, it will be really tough as one not only has to cope with the day to day business performance pressures but also the pressures of the new way of working. Thus, till everyone becomes comfortable with this new way of working, the support will be required across levels. Along with this, it could also call for a change in the Key Performance Indicators across the organization. A lot of questions may be raised about whether the system was required at all and also about the credibility of the system. These questions/doubts need to be addressed in order to ensure that a lot of positive energy is generated. It could also lead to some undercurrents that need to be managed tactfully. If issues are not managed well, this could shake the confidence of the entire organization in the system benefits and derail the supply chain journey. In order to avoid any jolts midway, a proper homework is absolutely essential on the functional as well as the people front. Once the organization has very thoroughly and logically decided on commencing a supply chain journey and achieved a true consensus within the organization, the likelihood of any stumbling blocks on the way is highly unlikely. The benefits as well as the steps should be clearly shared and agreed among all involved or impacted by the journey. This will give a strong foundation to the project that will go a long way in ensuring success. Needless to say, along with good homework, constant moral boosting and appropriate support at every step will be required.

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Questions to be answered before emerging on a Supply Chain Journey In order to avoid any jolts midway, a proper homework is absolutely- essential on the functional front as well as on the people front. There are various questions that need to be answered before one starts on a supply chain journey. What is the benefit that the organization is seeking from improvement of the supply chain? Has it been sufficiently debated and is it unanimously agreed among all functions? Is it clearly defined and measurable? Another very important question- is the supply chain strategy clear and is it aligned with corporate strategy? Will an improvement in supply chain really help achieve the targeted sales or profits? Unless one is very clear about all this, a supply chain journey either may not go anywhere as it will not get the desired focus and also it could come to a halt. Once the organization has very thoroughly and logically decided on commencing a supply chain journey and achieved a true consensus within the organization, the likelihood of any stumbling blocks on the way is highly unlikely. The benefits as well as the steps should be clearly shared and agreed among all involved or impacted by the journey. This will give a strong foundation to the project that will go a long way in ensuring success. Needless to say, along with good homework, constant moral boosting and appropriate support at every step will be required as people are the key to this project and they should not only be retained but kept at there best enthusiasm levels. If all the above homework has been done in the true sense, an organization can start planning a supply chain journey with a detailed project plan. It wilt definitely result in new learning at every stage that the organization will benefit from.

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3.2 IT in SCM Introduction Supply Chain Management (SCM) is a systematic integration of suppliers, Original Equipment Manufacturer (OEM), distributors and customers in order to produce and distribute the right quantities, to the right locations, at the right time, and at the cheaper cost, while satisfying the entire supply chain partners. It is an approach that involves a multi-organizational system, which encompasses the procurement of raw materials, conversion of raw materials to finished goods, and distribution of finished goods to the end users smoothly, by sharing required information throughout the supply chain. Recent supply chain practices dictate zero stock level of inventories at all stages of supply chain. A well-managed supply chain links the suppliers, OEM, distributors and customers by a suitable information system for controlling and coordinating the supply and distribution flow of services, products, and related information across border in order to achieve optimum productivity, overall satisfaction and joyful relation at cheaper cost. Hence, movement of materials and information flow must move parallel to have effective control over the whole system of supply chain. The success of supply chain ultimately depends upon the capacity of the supply chain partners to respond as quickly as possible to the demand, through a reliable information bridge, which connects the whole chain. Thus the faster information plays an important role for managing the pull based equipment supply process throughout the chain. The very philosophy of supply chain is based on the coordinated information and smooth material flow. Various supply chain members must maintain synchronized coordination through commitments amongst its members, which leads to reduction of lead time, reduction in cost, mutually agreed decision making process and enhance the productivity of each member, which ultimately enhances the performance of whole network. For achieving this mutually beneficial coordination, a suitable and dedicated information system is essentially required. Quick and effective information system helps manager to understand the customers response, their demands, inventory in the stock, how much to be produced, when to be produced and where to deliver and when, within no time.

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Here comes the role of Internet, which is considered as a cheapest interorganizational information-system, which helps in aligning the interdependent strategies to achieve cooperative rather than competitive role of SCM partners. Supply Chain is shown, in which goods flow starts from tier-II supplier and ends with products at final customer. Tier-II supplier keeps inventory of raw material at the starts of the production and an inventory of component at the end. Tier-I supplier gets supply of components from Tier-II supplier, keeps inventory of component at the start of the production and an inventory of sub-assembly at the end. Original Equipment Manufacturer (OEM) gets sub-assembly from Tier-I supplier, keeps inventory of sub-assembly at the start of the production and an inventory of final product at the end. Similarly at further stages of supply chain i.e. at OEMs warehouse, distributors warehouse and retailers warehouse also inventory is maintained and finally supply is made to the customer on demand. But it is also shown that all the stages of supply chain are connected with Internet with each other. Hence, information can flow from any stage to every stage within seconds. For example, Sundram fasteners supplies to Brakes India, Brakes India supplies to Maruti car manufacturer, Maruti car co. supplies to the warehouse, from warehouse car moves to distributors and from distributors to customers. At the same time any stage can get supply from all stages on demand because inventory is maintained at all the stages. Here information and goods move parallel from one stage to another stage. Since, computers at all the stages are connected with network of Internet, the overall management of material flow, types of transportation, distance, lot size, lead-time, storage system at the shop floor, timeliness, reliability of system, order volume, number of suppliers, system of transportation, payment schedule, vendor selection etc., can be optimized with mutual cooperation. Optimization reduces cost and improves services, which results in customer satisfaction.

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Information Technology The combination of computers and telecommunication provided the fastest device of communication in the form of Internet. Internet today is becoming the reliable link between the suppliers and customer. It turned the whole world into a global village. Liberalization and globalization have changed the whole concept of nationalism. Due to globalization all geographical barriers are being broken. With the help Internet customers get free information about the world market. They keep track of the products being produced in the market. They have easy access to the world class quality and respective price. Hence, competition in the market is very high. Monopoly has become the matter of past. It allowed the better utilization of existing facilities and minimized the amount of materials in the stock at any time and reduced the wastage. Manufacturer has to be very flexible to reorient the manufacturing process to meet the frequent design changes resulting from the frequent change in the customers choice. Now the customers satisfaction is not the only criteria for selling the product in the market but customers delight has also to be taken care off. The erstwhile Sellers market has today being transformed into a buyers market. Earlier producers use to fix the price of the products keeping profit margin, now prices are fixed by the customers market and to earn profit producers have to reduce the manufacturing cost. In this changing environment, conventional system of planning, manufacturing and delivery of finished products is becoming irrelevant. Information Technology offers many opportunities for companies to cut cost and improve responsiveness to customers needs. Some of the positive points of IT enabled services are: 1. Information technology is comparatively less capital intensive. 2. It is environment friendly and clean. 3. It is not location specific and can be undertaken from anywhere (large cities, small towns or even remote locations with Internet facilities) 4. It does not require expensive infrastructure facilities like roads, rail heads, etc.

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As a result, there has been phenomenal growth of IT applications all over the globe. Indian industries are also reaping substantial benefits from the adoption of IT enabled services. Automobile Industries are pioneer in this regard. Information Technology in Indian Context In mid-eighties the Government of India in its industrial policy resolution put emphasis on the use of computer. Indian Industries also quickly realized that the use of computer could provide correct, quick and reliable information and could have significant impact on a firms performance. The use of Internet in India is also showing substantial progress due to its inherent potential to integrate with global economy in a big way.

Various IT Solutions: i) Communication Internet is currently an important resource for business to conduct activities ranging from basic communication to data exchange. Application of radio frequency, satellite communications and image processing technologies has become useful. Instead of solely on catalogs, suppliers are delivering product information to customer as data via Internet, making it more convenient to buyers.

ii) Electronic mail (e-mail) Electronic mail provides medium for communication throughout the globe, any time, within fraction of second at virtually negligible cost. Electronic mail usually occurs over the Internet. The electronic mail market is a multi billion-dollar business. One of the main reasons for the growth in e-mail, in addition to the speed and accuracy of its data transmission is cost saving. With e-mail, the cost of ordering has been reduced. Instead of relying on the post, mail or courier the inventory manager prefer to use Internet for sending information.

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iii) Electronic Data Interchange (EDI) The communication system with suppliers on the supply side and customer on the distribution side exchanged the data through Internet at very low cost. For safety, electronic data exchange information is only available to those who have a dedicated electronic data interchange link. Location tracking of cycle inventory or process inventory can also be done. This technology requires a combination of the Global Position System and wireless communication.

iv) Enterprise Resource Planning (ERP) Using Enterprise Resource Planning information can be gathered from across all of companys function. ERP system monitor inventory throughout the channel of a business system. The ability to keep track of inventory at different levels has become more important as business system becomes more complex. But this is useful for OEM where many components are handled.

Survey of IT Solutions Indian automobile industry has entered the new millennium on an encouraging note. The automobile market is booming. Internet is being utilized in automobile industry in a big way. The application of Just in time and information technology in the field of management control, decision-making, planning, communication, accounting and inventory is gaining ground. The companies run by foreign investors are implementing Internet wherever possible, especially in business. They are trying to interlink suppliers, manufacturers, wholesalers and retailers to have better control on inventory at various levels of supply chain. It allowed the better utilization of manpower. It was also observed that although Internet plays an important role in keeping track of inventory, sometime it creates problems also as bad system increases the risks and subsequently wastage of capital and time. At the same time it needs investment every year because new software comes in the market frequently with new ideas. For component manufacturer it is difficult to switch over to new system as frequently as changes are taking place in the field of computer software. Even though, most of the component manufacturers are

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enjoying the benefits of new technology along with new information technology in the form of Internet. Internet has reached to the every nook and corner, we observed that in India it still under utilized even in the industries like automobile where considerable awareness is there and competition is cut throat. The scope of inventory management is limited to one organization. There is no cooperation between the supplier and the customer firms. We can call it none integral inventory management. There is opposition between organizations. Integral inventory management by domination of one organization over others is also found in certain area where few organizations have realized supply chain by one organization dominating the other organizations in the supply chain. But it is fact that Internet has influenced the whole business strategy whether it is policy decision or it is physical implementation. Some of the areas where its greater effect felt are as follows:

i)Communication (a) Twenty four hours communication throughout the year all over the world. Because of Internet communication there are saving in manpower, stationery, postage and journey fare. (b) Quick exchange of views with suppliers or customers, quick exchange of ideas and expertise, customers feedback collection becomes easier and quicker, quick delivery of drawings and specifications in digital form etc. are possible.

ii) Selection of vendor or partner a) Suitable vendor selection from many vendors from any part of the world, at the same time vendor development is also easier. (b) Since whole world is connected through Internet, it becomes easier to select business partners for joint venture.

iii) Cost Saving a) Reduce inventory reduce cost of preparing letters and sending letters, saves postage cost and saving in journey fare. There are saving under different heads

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to all level of supply chain. (b) Achieving order and placing order become less costly and also reduces cost of distribution.

iv) Reduction of lead time (a) Reduces lead-time of material supply. (b) Reduces retrieval time of documented information.

v) Improves product Promotional Activities a) Reduces expenditure for market expansion and also reduce market mediation b) Customers feedback can be collected easily, improves relation with customer and helps in promotion of products in the form of advertisement.

vi) Limitations Similarly some limitations were also recorded: (a) Lack of managers awareness with the system and lack of managements full commitments. (b) Development of electronic data interchange is a costly affair. (c) Problems of security and privacy. (d) Since no face to face contact is there hence, lack of trust. (e) Customers also need awareness for effective utilization of Internet in the business.

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Operational Definitions and Concepts Information is the key success of a supply chain because it enables the management to make decisions over a broad scope of both functions and Organizations. There are various IT tolls, which are important for a supply chain to function effectively: Intranet Extranet Internet EDI Web-Based EDI Bar Coding and Scanning

The impact of each and every tool is significant. Information sharing between supply chain partners and within the firm is the key issue that needs to be improved. By installing these IT tools, organizations can enjoy better relationships with its employees and supply chain partners. Technology can be used to assist integration through accurate, complete and timely transfer of data. These are two principal ways in which technological integration can be accommodated: Through Information Technologies, such as Artificial intelligence, expert System, Electronic mail and Video-conferencing Through Functional databases, such as CAD/CAM.

The development in IT has resulted in many possible alternative solutions for managing the supply chain effectively. Effective intra-firm information system are developed, which includes: Warehouse Management System Transportation Management System Intranet

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Enterprise Resource Planning Materials Requirements Planning

Intra Firm Information Systems Warehouse Management System (WMS) The evolution of warehouse management systems (WMS) is very similar to that of many other software solutions. Initially a system to control movement and storage of materials within a warehouse, the role of WMS is expanding to including light manufacturing, transportation management, order management, and complete accounting systems. The primary purpose of a WMS is to control the movement and storage of materials within an operation and process the associated transactions. Directed picking, directed replenishment, and directed put away are the key to WMS. The detailed setup and processing within a WMS can vary significantly from one software vendor to another; however the basic logic will use a combination of item, location, quantity, unit of measure, and order information to determine where to stock, where to pick, and in what sequence to perform these operations. At a bare minimum, a WMS should: Have a flexible location system. Utilize user-defined parameters to direct warehouse tasks and use live documents to execute these tasks. Have some built-in level of integration with data collection devices.

Transportation Management System While most organizations have focused on warehousing/distribution and store operations as primary areas for cost control and improved efficiencies, the transportation operation of the business is a cost frontier where new systems are providing tremendous savings while greatly improving operational control. This wireless transportation system is designed with an open architecture that provides an interface into legacy systems, is hardware independent and scalable to allow for a phased application implementation. By utilizing this design

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approach organizations are protecting both their software and hardware investments into the future. The distribution center has an appropriate number of wireless LAN access points installed which allow for communications with the vehicles while they are operating within the Warehouse and Yard areas. With the installation of Warehouse Management Systems (WMS), this wireless backbone may already be in place. Used for wireless data collection systems, it enables real-time Receiving, Put-away and Picking applications within distribution facilities.

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Business Benefits These wireless Transportation Management Systems provide users tremendous operational benefits in the following areas: Fleet Visibility - Total fleet visibility is provided by making the locations and status of every trailer and tractor available to dispatchers, store managers, and management at all times regardless of location (i.e. in the yard, on the road, or at the store). Driver / Dispatcher Productivity - Driver and dispatcher productivity is promoted by streamlining and improving the existing work processes while substantially reducing the amount of paperwork and non-productive communications. Store Communications - Providing store associates with real time data allows the store to be notified of deliveries automatically by utilizing global positioning (GPS). GPS is capable of providing estimated time of arrivals (ETA's) to the stores that are accurate within minutes. This helps plan personnel for unloading the trailers and reduces the waiting times for tractors, trailers, and drivers, thereby reducing the cost of delivery and improving timeliness of shelf replenishment. Management Reporting - Providing transportation executives with real-time data enables greatly improved decision making. Information such as tractor/trailer locations, individual store delivery time and cost, and driver productivity reports can be made available almost instantaneously in a format management can readily use.

Intranet A network based on TCP/IP protocols (an internet) belonging to an organization, usually a corporation, accessible only by the organization's members, employees, or others with authorization. An intranet's Web sites look and act just like any other Websites, but the firewall surrounding an intranet fends off unauthorized access. Like the Internet itself, intranets are used to share information. Secure intranets

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are now the fastest-growing segment of the Internet because they are much less expensive to build and manage than private networks based on proprietary protocols.

ERP - Enterprise Resource Planning ERP is a totally integrated enterprise resource planning system that enables manufacturers to increase production efficiency, reduce lead times, improve customer service and reduce costs across all operational areas of the enterprise. ERP's predecessor was MRP (Material Requirement Planning) which tied manufacturing floor control, inventory, materials and purchasing into a unified structure with order entry as the master control point. ERP takes this unification process farther and integrates operations functions with back office functions like payroll, human resources, and accounting, as well as with front office functions of marketing and strategic planning. ERP was developed to assist the marketing efforts of SAP, People Soft, Baan and other major ERP integration providers. These companies were major Wall Street darlings until the Y2K effort, since which ERP business has been in a bit of a slump. Retrofitting ERP onto the existing systems of a diversified organization is a horrendously difficult task, costs a huge amount of money, and carries a high risk of at least partial failure.

ERP Implementation Services Package Organizations have invested plenty of money in ERP packages such as SAP, BANN IV, PeopleSoft and ORACLE to streamline its business processes. It stands to reason that plenty of key information resides in those packages realtime information managers need in order to make strategic decisions. In fact, for a complete view of the business, they need not just ERP information, but also the information locked in organizations other systems. The only way to accomplish that is to integrate ERP reporting into a sophisticated enterprise-level business intelligence system that can be used by intelligence workers and programmers alike.

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EDI EDI save companies a great deal in expenses and manual processes. EDI (Electronic Data Interchange) is the application-to-application exchange of business information in a standardized electronic format. A fully integrated EDI can save a company a great deal in expenses and manual processes.

Supply Chain Management Supply Chain solutions are focused on helping clients address key issues like Purchasing, Inbound Logistics, Operations, Warehouse Management, Outbound Logistics, and Demand Management. SCM technology practice provides expertise in solutions like i2, Peoplesoft, SAP and Oracle backed by experienced technical and functional consultants.

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Supply chain solutions don't just simplify the buy-sell process, they cut waste out of supply chains by letting trading partners share demand forecasts, production schedules, and inventory data. Package leverages extensive knowledge of supply chain processes with expertise in products like Peoplesoft and traditional strengths in Internet technologies and XML frameworks, to deliver supply-chain systems that are tailored to meet the needs of business partners.

MRP Materials Requirement Planning (MRP) is a scheduling procedure for production processes that have several levels of production. Given information describing the production requirements of the several finished goods of the system, the structure of the production system, the current inventories for each operation and the lot sizing procedure for each operation, MRP determines a schedule for the operations and raw material purchases. This add-in provides all the features necessary to formulate and solve small examples. The primary control focus of an MRP system is Order Entry. Once an order is entered (and it may be an internal order to build for stock), all the manufacturing functions are put into motion. These include: Cost Estimates - a function of Order Entry. Cost builds can be ordered from information in the other modules Order Entry - where the demand originates. Orders may be scheduled for periodic builds Inventory Control - do we have any of this stuff already built? How much? Bill of Materials - what parts are needed to produce the product. BOM provides a complete multi-level build "blow down". Purchasing - what parts called for by the BOM are in stock and which ones do we have to buy, and when do they have to be here. Manufacturing Floor Control and Scheduling - Controlling allocation of personnel and resources. Invoicing - where an order is transformed into an Invoice and shipping

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documents. Partial shipments and periodic shipments are allowed for, and will draw down the order quantity. A choice of software packages depends on who is considered most important in your company, the accountants, or the people who get product out the door. Network Management A WAN is a data communications network that covers a relatively broad geographic area and that often uses transmission facilities provided by common carriers, such as telephone companies. WAN technologies generally function at Physical layer, Data link layer and Network layer

Point-to-Point Links A point-to-point link provides a single, pre-established WAN communications path from the customer premises through a carrier network.

Circuit Switching Switched circuits allow data connections that can be initiated when needed and terminated when communication is complete. Such as: Normal telephone line works for voice communication Digital Network (e.n.ISDN)

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Packet Switching Packet switching is a WAN technology in which users share common carrier resources. The carrier can create virtual circuits between customers. Such as: Asynchronous Transfer Mode (ATM), Frame Relay and X.25

Network Management System OSI Network Management Model Configuration Management: Elements are Change Control, Inventory Hardware, Inventory Software, Software and Configuration Information Fault Management: Elements are Events, Alarms, Problem Identification, Troubleshooting, Problem Resolution and Fault Logging Performance Management: Elements are Network-Capacity Planning, Availability, Response time, Accuracy, Throughput and Utilization. Security Management: Elements are Policy, Authority, Access Level, Exceptions, Logging and Authentication failure. Accounting Management: Elements are Asset Management, Cost Control and Charge-back.

Scientific Network Architecture Device Fault Manager (DFM) DFM reports faults that occur on Cisco devices DFM identifying fault conditions before users of network services DFM creates a causality mapping between the fault conditions and the symptoms

DFM Architecture: DFM consists of three components. They are DFM Domain Manager, DFM Clients and DFM Broker. After initial discovery, DFM continuously monitors the status of devices in your network using: SNMP polls, SNMP trap message processing and Internet Control Message Protocol (ICMP) polls. Elements of DFM are Bridges Routers, SNMP Agents, Switches, System Memory Resources,

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System Processor Resources, Chassis, Cards, Hosts, Hubs, Interfaces, Ports and Power Supplies.

Performance Management System (PMS) The goal of performance management is to measure and make available various aspects of network performance so that internet work performance can be maintained at an acceptable level.

Service Level Agreements (SLA) An SLA is a contract that defines the information technology and network services to be provided and acceptable levels of performance. The SLA contract defines minimum and maximum levels of performance. A Typical SLA metrics include: Network uptime, Application availability and Network and application response time.

Security Management System (SMS) The goal of security management is to control access to network resources. A security management subsystem can monitor: Users logging on to a network resource Refuse access to those who enter inappropriate access codes Authority Authentication failure Protect network from hackers and worms Authorized areas Unauthorized areas Identify sensitive Network resources (including systems, files, and other entities) Determine mappings between sensitive network resources and user sets Monitor access points to sensitive network resources

Security management subsystems work by partitioning network resources to:

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SECURITY SOLUTION Virtual Private Network (VPN) Encapsulating a network protocol then encapsulating the entire package inside a tunneling protocol. VPN Uses Tunneling, Encryption/Encapsulation and Authentication.

Encryption Model There are two basic cryptographic systems: Symmetric: Commonly used to exchange large packets of data Asymmetric: This method is often used for smaller, more sensitive packets of data, or during the authentication process (Using Mathematic algorithms) .e.g. DES (Data Encryption Standard)

Firewalls A firewall protects network computers from intentional hostile intrusion that could compromise confidentiality or result in data corruption or denial of service.

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A firewall examines all traffic routed between the two networks A firewall filters both inbound and outbound traffic A firewall can manage public access to private networked resources such as host applications A firewall can log all attempts to enter the private network and trigger alarms when hostile or unauthorized entry is attempted. Firewalls can filter packets based on their source and destination addresses and port numbers(Address filtering) Firewalls can filter specific types of network traffic(Protocol filtering ,e.g. http, telnet) Refuse IP spoofing.

Basic Firewall Operation

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The Barcode-Technology The automatic identification industry has played a key role in the advancement of identification technology. With its primary focus on capturing information both quickly and accurately, automatic identification provides the fastest and most efficient means of gathering data. Barcodes can also be produced easily and inexpensively. Barcode scanner: A barcode scanner has two components: a device to produces an electronic signal representing the bars and spaces of a barcode, and a decoder that converts the electrical signals into a digital format for input to a computer. Together the barcode scanner and decoder produce a barcode reader. ISDN: Integrated Services Digital Network ISDN is an international communications standard for sending voice, video, and data over digital telephone lines or normal telephone wires. ISDN supports data transfer rates of 64 Kbps (64,000 bits per second). There are two types of ISDN: Basic Rate Interface (BRI) -- consists of two 64-Kbps B-channels and one D channel for transmitting control information. Primary Rate Interface (PRI) -- consists of 23 B-channels and one Dchannel (U.S.) or 30 B-channels and one D-channel (Europe). The original version of ISDN employs base band transmission. Another version, called B-ISDN, uses broadband transmission and is able to support transmission rates of 1.5 Mbps. B-ISDN requires fiber optic cables and is not widely available.

Operating system Operating system is the most important program that runs on a computer. Every general-purpose computer must have an operating system to run other programs. Operating systems perform basic tasks, such as recognizing input from the keyboard, sending output to the display screen, keeping track of files

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and directories on the disk, and controlling peripheral devices such as disk drives and printers. For large systems, the operating system has even greater responsibilities and powers. It is like a Traffic cop. It makes sure that different programs and users running at the same time do not interfere with each other. The operating system is also responsible for security, ensuring that unauthorized users do not access the system. Operating systems can be classified as follows: Multi-user: Allows two or more users to run programs at the same time. Some operating systems permit hundreds or even thousands of concurrent users. Multiprocessing: Supports running a program on more than one CPU. Multitasking: Allows more than one program to run concurrently. Multithreading: Allows different parts of a single program to run concurrently. Real Time: Responds to input instantly. General-purpose operating systems, such as DOS and UNIX, are not real-time. Operating systems provide a software platform on top of which other programs, called application programs, can run. The application programs must be written to run on top of a particular operating system. Users choice of operating system, therefore, determines to a great extent the applications user can run. For PCs, the most popular operating systems are DOS, OS/2, and Windows, but others are available, such as Linux. As a user, you normally interact with the operating system through a set of commands. For example, the DOS operating system contains commands such as COPY and RENAME for copying files and changing the names of files, respectively. The commands are accepted and executed by a part of the operating system called the command processor or command line interpreter. Graphical user interfaces allow you to enter commands by pointing and clicking at objects that appear on the screen.

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3.3 INDIAN MANUFACTURING SECTOR Indian manufacturing sector contributes one-fourth of total GDP of India. It employs 30% of non-agricultural workforce. Industrial output valued at US$ 65 billion. There was a Rise in growth from 2.7% in 1998-99 to 6.1% in 2002-03. Significant rise in index of growth for the manufacturing sector from 6.5 % in February 2003 as compared to 2.9% in February 2002

Exports Manufacturing sector exports have grown from 3.0 % in 1998-99 to 14.8% in 2002-03 Transition from largely agro-based raw materials to processed items Need to increase high value-added component

Engineering Employs over 4 million skilled and semi-skilled workers, directly or indirectly Estimated size of sector: US$ 22 billion Exports in 2001-02: US$ 6.6 billion Imports in 2001-02: US$ 4.9 billion Strong technological capabilities, particularly in sectors such as electrical machinery, process plant machinery and general purpose machinery Diversified industrial base with supporting ancillary industries Many leading MNCs have established base in India- LG, Hyundai, GM, GE, Ford, Electrolux, Toyota, Sony, Honda, Siemens among others

Chemicals Indian Chemical industry ranked 12th in the world Rate of Chemical industry growth over last 5 years has been double that of Asias growth & 5 times the world growth rate for the sector Indian chemical industry valued at Rs. 1200 billion(US$ 28 billion) Accounts for 1.5% of global chemicals market

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Indian trade is 1.3% of total chemicals trade worldwide Net value added of chemicals industry is the highest within manufacturing sector with a share of over 22% of total value added

Pharmaceuticals Worlds 4th largest pharmaceuticals producer with share of 8% of global production by volume and 1.5% by value Indian pharmaceuticals market valued at US$ 6.5 billion in 2001 Production of drugs at 1/20th the cost incurred by developed countries India is the largest producer of Sulfamethoxole and Ethambutol (anti TB) GlaxoSmithKline India is to become the hub of clinical research in South Asia Discovery research has begun in a major way by Indian companies with Dr.Reddys Laboratories and Ranbaxy pioneering this effort

Steel Worlds 8th largest producer of steel Worlds largest producer of sponge iron Production of - Finished steel (Apr Dec 2002): 23.83 million tonnes - Pig iron: 3.9 million tones - Sponge iron: 4.5 million tonnes Export of steel (Apr Dec 2002): 2.75 million tonnes, increase of 21.6% over previous year Increasing role of private sector in production increase in share from 51.4% in 1991-92 to 67% in 1998-99 Indian steel sector has the capability to produce a variety of grades of steel conforming to international quality standards

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Auto Sector Extensive backward and forward linkages strongly interwoven with machine tools and metals sectors Turnover of auto sector over US$ 10 billion ; auto-component segment: US$ 2.7 billion Provides employment to 0.45 million directly and 10 million indirectly High quality of auto components used as original components for vehicles by leading international companies Distinct cost advantage: labor cost 8-9 per cent of sales as against 30-35 % of sales in developed economies

Oil & Natural Gas Current annual crude oil production: 32 million tonnes, Current demand: 110 million tonnes Refining capacity: 115 million metric tonnes p.a. Reliance Petroleum Refinery at Jamnagar is the worlds largest single stream refinery Strong retail infrastructure comprising over 17,000 petrol stations; 6,500 kerosene depots and over 5,500 domestic LPG dealers Worlds largest gas find in 2002 at Krishna -Godavari basin

Textiles Sector accounts for 14 % of Indias industrial production and 27% of export earnings CAGR of 3.66 % over last five years India accounts for 15% of worlds total cotton crop production, largest producer of silk Large pool of skilled low-cost technologically experienced workers Major segment: Manmade fibers accounting for 40% share in Indian textile Industry

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Future Of Indian Manufacturing Sector Base for export to third countries - Hyundai Motors using India as export base for foreign markets, currently exporting to 8 countries and looking at expanding exports to markets in the European Union and Latin America. The company has also set up an R & D center at its Chennai plant World class R & D facilities Emergence as global manufacturing hub with presence of MNCs such as LG, Samsung, Hyundai, Pepsi, GE, General Motors, Ford, Suzuki etc Increased implementation of state-of-the-art IT technologies current IT usage of 15% Segments showing high potential: automobiles, steel, aluminium, cement, auto ancillaries, forging and pharmaceuticals

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4. RESEARCH METHODOLOGY
4.1 TYPE OF RESEARCH For the present study, exploratory research is used. The major emphasis of exploratory research is on the discovery of ideas. Through exploration, concepts can be developed more clearly, priorities can be established, operational definitions can be developed, and the final research design can be improved. This research is quantitative in nature.

4.2 SAMPLING TECHNIQUE This study deals with IT applications in supply chain management, so, judgment sampling is considered appropriate for making projections in the study. Judgment sampling occurs when a researcher selects sample members to conform to some criterion. When used in the early stages of exploratory study, a judgment sample is appropriate. When one wishes to select a biased group for screening purposes, this sampling method is also a good choice.

4.3 SAMPLE SIZE This research is restricted to a sample size of 30. The population is restricted to manufacturing companies in India.

4.4 SAMPLE DESCRIPTION The sample basically consists of 30 companies belonging to the manufacturing sector. The companies chosen are listed on the NSE. The companies belong to various industries in the manufacturing sector like automobiles, pharma, paints, aluminium, cement, engineering, textiles, steel, FMCG and tyres. These companies have IT implemented in their supply chains.

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LIST OF THE COMPANIES CONSIDERED FOR THE STUDY COMPANY ASHOK LEYLAND MARUTI UDYOG MAHINDRA & MAHINDRA TVS ESCORTS DR. REDDYS RANBAXY NICOLAS PIRAMAL LUPIN MATRIX LABS GUJARAT AMBUJA INDIA CEMENTS ACC MADRAS CEMENTS L & T (ECC) ABB HINDALCO ASIAN PAINTS BERGER GOODLASS NEROLAC TATA STEEL JINDAL STEEL SAIL ARVIND MILLS MADURA COATS HIMATSINGKA SIEDE DABUR MRF CEAT APOLLO INDUSTRY AUTOMOBILE AUTOMOBILE AUTOMOBILE AUTOMOBILE AUTOMOBILE PHARMA PHARMA PHARMA PHARMA PHARMA CEMENT CEMENT CEMENT CEMENT ENGINEERING ENGINEERING ALUMINIUM PAINTS PAINTS PAINTS STEEL STEEL STEEL TEXTILES TEXTILES TEXTILES FMCG TYRES TYRES TYRES

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4.5 SOURCES OF DATA Data has been collected from various sources; a combination of both primary and secondary data is used in this research. (a) Primary Data Primary data is collected just by mailing the questionnaire to the organizations. The primary data is also collected by using online survey website called www.freeonlinesurveys.com. (b) Secondary Data Articles have been sourced from magazines and journals dealing with current issues in Supply Chain Management. Internet & Text books related to Supply Chain Management. Company Portals Websites related to latest technologies used in Supply Chain Management

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5. DATA ANALYSIS AND INTERPRETATION

5.1 DATA PRESENTATION 5.1.1 IT TOOLS USED IN COMPANIES

IT Tools Used In Companies

ERP Bar Coding & Scanning Web Based EDI

Extranet

Internet

Intranet 0 5 10 15 20 25 30 35

No. Of Companies

INTERPRETATION All the companies considered in the sample use internet in their operations. More than half of the companies have implemented ERP in their supply chain operations. A significant number of companies are using intranet & extranet. Technologies like bar coding, scanning and web based EDI have few takers. But, it has to be remembered that these technologies are useful to specific industries like textiles, automobiles and FMCG.

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5.1.2 INTRA FIRM INFORMATION SYSTEMS USED

Intra Firm Information Systems Used

Inventory Management Distribution Planning MRP ERP Intranet Transportation Management Warehouse Management 0 5 10 15 20 25 30

No. Of Companies

INTERPRETATION All the companies have intra firm information systems. Majority of the companies have information systems for all the activities in their supply chains. Technologies like ERP are also being used by majority of the companies.

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5.1.3 NATURE OF PORTAL

Nature Of Portal

B2C Portal

B2B Portal

Vertical Portal

Horizontal Portal 0 5 10 15 20 25 30

No. Of Companies

INTERPRETATION Majority of the companies operate through a B2C transaction portal followed by companies operating through a B2B portal. Fewer companies have a vertical portal and horizontal portal. Some companies portals are a combination of both B2B and B2C.

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5.1.4 MODE OF INTERNET ACCESS

Mode Of Internet Access

VSAT

DSL

ISDN Leased Line

Dial Up IP

Dial Up

10

15

20

25

30

No. Of Companies

INTERPRETATION Most of the companies access internet through DSL and ISDN leased lines with significant number of companies accessing through latest VSAT technology.

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5.1.5 IT CONNECTIVITY ESTABLISHED/INTENDED TO ESTABLISH BETWEEN VARIOUS TRADING PARTNERS

IT Connectivity Established/Intended To Establish Between Various Trading Partners

Head Office & Trading Partners Head Office & Distributors

Head Office & Factory

Head Office & Branch Office 0 10 20 30

No. Of Comapanies

INTERPRETATION Majority of the companies have IT connectivity between their respective head offices and branch offices and factories. It can be observed that companies with ERP implemented in their operations have connectivity with all the stakeholders mentioned above.

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5.1.6 MODE OF EXCHANGE OF INFORMATION BETWEEN SUPPLY CHAIN PARTNERS

Mode Of Exchange Of Information Between Supply Chain Partners

ETN

Web Based EDI

EDI

Telephone, Fax & E-mail

10

15

20

25

30

35

No. Of Companies

INTERPRETATION Majority of the companies still use means like telephone, fax & e-mail to exchange information with their supply chain partners, though a significant number of companies use web based EDI technology as a result of implementing ERP in their operations

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5.1.7 TYPE OF ARCHITECTURE ADOPTED

Type Of Architecture Adopted

3-Tier

2-Tier

Centralized

10

15

20

25

30

No. Of Companies

INTERPRETATION Most of the companies have 3-tier architecture in their networks consisting of business layer, application layer and database layer due to the implementation of ERP in their supply chain operations. But a significant number of companies still have centralized file-server architecture.

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5.1.8 NETWORKING USED

Networking Used

Value Added Network

Private Area Network

WAN

LAN

10

15

20

25

30

No. Of Companies

INTERPRETATION Many companies are using value added network in their supply chains which is helping them in creating value to the customer, which is the basic principle of any supply chain. And, a significant number of companies are using WAN & LAN as their networks.

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5.2 HYPOTHESIS SL.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 35 35 30 25 30 40 30 25 10 5 30 0 15 10 20 25 30 40 20 25 35 10 15 25 25 0 35 30 15 25 x = 695 (x

(x

x
139.95 139.95 46.65 3.35 46.65 283.25 46.65 3.35 173.45 330.15 46.65 536.85 66.75 173.45 10.05 3.35 46.65 283.25 10.05 3.35 139.95 173.45 66.75 3.35 3.35 536.85 139.95 46.65 66.75 3.35
x

)2

)2 =3574.2

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We get,

= 23.17

We know,

(x x )2 s2 =
n
s2 = 3574.2/30 = 119.14 Therefore, Variance, s2 = 119.14 Standard Deviation, s = 10.92 We know,

t =

x s n 1
= 23.17 40 = - 16.83

x-

(n-1) = 29 = 5.39 s/ (n-1) = 10.92/5.39 = 2.026 Therefore, t = -16.83/2.026 = - 8.307 t cal = -8.307

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1. Null hypothesis H0: IT is adopted in supply chain management in companies 2. Alternate hypothesis Ha: IT is not adopted in supply chain management in companies Statistical test: t-test for the significance of single mean, population variance being unknown is chosen as the test of significance. 3. Significance level: level = .05, with n=30, DOF = 29 4. Calculated value = T cal = - 8.307 5. T tab = 1.699 6. Interpretation: Since T cal < T tab, accept null hypothesis 7. Conclusion: IT is adopted in supply chain management in companies

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5.3 CONCLUSIONS FROM THE ANALYSIS From the data collected and the analysis which is done on the data, it can be said that most of the companies have employed IT in their supply chains. Large organizations like Maruti, Dr.Reddys, Tata Steel etc, have employed IT to a great extent in their supply chains. A significant number of companies are on the road of applying IT. Such companies are mostly medium size companies. Companies operating in the automobile sector are giving more importance in applying IT in their supply chains when compared to the companies operating in other industries of the manufacturing sector. It can also be observed that, many companies are employing ERP in their supply chains. Many companies are moving towards integrating all their stakeholders through IT.

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6. IMPLICATIONS
From the study, it can be implied that: Many companies in the manufacturing sector are employing IT in their supply chains in order be sustain the changing business environment, face the competition and to gain strategic advantage. Many medium and small enterprises are in the process of deploying IT in their supply chains. Companies which are anticipating tremendous growth in their business are the ones who are deploying IT at a rapid pace in their supply chains. Companies in the manufacturing sector have realized that, in order to survive in the business, IT is essential for their operations. Companies have realized that an efficient supply chain is an important part of their business. More and more companies are moving towards transforming their supply chains into value chains by applying IT

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7. SUGGESTIONS
This study is only concerned with IT applications in the supply chain operations in the manufacturing sector. This study can be further extended in the following areas: Research can be carried out regarding IT applications in supply chains, pertaining to specific industries like automobile, textiles etc. Studies can be carried out in companies where IT is not being used and suggestions can be made regarding employing IT. Studies can be done on individual applications of IT tools like ERP, RFID, latest communication technologies like VSAT, EDI etc, and how these tools can improve the efficiency of the supply chain.

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8. CONCLUSION
In todays business environment, popularity of supply chain is a simple result of advances in technology and competition. In a country like India which is experiencing tremendous amount of growth in all sectors after liberalization of the economy in 1992, many companies have come up and some companies have grown to become world class companies. So, as the companies grow, so does their network of suppliers, distributors, retailers and customers. In such circumstances it is essential for companies to improve their network by building an efficient supply chain in order to face the competition. In this process many companies have employed various latest technologies like ERP, RFID, Barcodes etc resulting in an improved and efficient supply chain which in turn resulted in increased profits, reduced costs and time and a satisfied and happy network of suppliers, distributors, retailers and finally the customers.

But, supply chain management is not as simple as it appears. Supply chain implies everything right from re-looking at the organization structure to changing peoples mindsets across levels. It also includes empowering people with new skills on all fronts, technological inputs, analytical inputs etc. Various training sessions could be required along with change management inputs as this not only calls for learning, mastering and liking a new complex system but it also means changing attitudes for which beliefs need to be changed.

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9. INSTRUMENTATION TECHNIQUE

Questionnaire Dear Sir / Madam, I am an MBA 4th Semester student and as a part of our curriculum I am doing a project titled A study On Applications Of IT In Supply Chain Management In Manufacturing Sector. I would be grateful to you if you could spend a few minutes and share your views with me. The study is for academic purpose only and will be kept strictly confidential. (Tick wherever applicable). 1. Name: 2. Company Name: 3. Designation: 4. Products of the Company: 5. Whether Company using IT tools: Yes/No (Ex: Extranet, Intranet, ERP etc) 6. IT Tools used in Organization Intranet Web based EDI ERP Internet Extranet Bar Coding and Scanning

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7. Intra firm Information Systems which are used Warehouse Management Transportation Management ERP Intranet Material Requirement Planning Distribution Planning Inventory Management 8. Do you agree that IT has given your organization the following strategic advantages? Better Collaboration Improved Communication Greater Flexibility Increased efficiency Reduced cycle time Lower operating costs Increased revenue Higher profit margin 9. Nature of your website Horizontal Portal B2B Exchange Vertical Portal B2C Exchange Transaction Portal

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10. Mode of Internet Access Dial up Dial up-IP ISDN Leased Line VSAT

Direct Subscriber Line (DSL)

11. IT connectivity established / intended to establish between various trading partners Head office and Branch Office Head office and Factory Head office and Distributors Head office and Trading Partners 12. Mode of Exchange of information between Supply Chain Partners. Telephone Web Based EDI Fax E-mail ETN EDI

13. Type of Architecture adopted by the Organization Centralized Mainframe Two tier client server system Three tier client server system 14. Networking used in the Organization LAN WAN Private Area Network

Value-added Network

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10. BIBLIOGRAPHY
www.google.com www.en.wikipedia.org www.thehindubusinessline.com Websites of companies included in the sample

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11. APPENDIX
ERP - A software developed by SAP Labs RFID - Radio Frequency Identification EAN - EAN India is a non-profit organization set up by various industry bodies and the Ministry of Commerce, Govt. of India, to promote global supply chain standards. EAN India administers and promotes the use of EAN.UCC standards in the Indian industry. It is an affiliate of EAN International, Brussels which overseas the operations of 101 EAN organizations across the world. OEM - Original Equipment Manufacturer EDI - Electronic Data Interchange B2C - Business To Customer B2B - Business To Business VSAT - Very Small Aperture Terminal ISDN - Integrated Services Digital Network IP - Internet Protocol WAN - Wide Area Network LAN - Local Area Network

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