SCM and Information

Technology

Topics for Discussion

Need for IT systems in SCM.

Support of IT Systems in Purchase Process.

Supply Chain Information Process.

Distribution database for business transactions, tracking products.

Bar Coding & Scanning Technologies for product identification.

Web Technologies EDI & EFT.

Need for Information Technology

Growing World Class Competitors.

Customers equip with information from the internet.

Shift in balance of power between buyer and seller.

1960 & 70s Development means Market Strategy.

1980s Organization was flexible for new products.

1990s Reaching the customer with right product, time, place and
cost.

Information Systems for Order Processing

Identify user need for product or service.

Purchase Requisition
Cross Functional New Product Development Teams
Traveling Purchasing Requisitions / Bar Codes
Customer Orders and Forecast
Reorder Point System
Stock Checks

Information Systems for Order

Processing

Evaluate potential suppliers.

Request for Quotation

Specifications or Blue Prints
Evaluate Suppliers

Bidding, Negotiation, and supplier selection.

Purchase approval.

Release and receive purchase requirements.

Measure supplier performance.

Improving the Purchase Process

Online Requisition Systems.

Procurement Cards issued to users.

Electronic Purchasing Commerce.

Online Ordering Systems to Suppliers.

Electronic Data Interchange.

Advantages of E-Procurement

Elimination of Paper Work.

Reduction in purchasing time.

Instant communication within company and with

suppliers.

Reduction in Errors.

Purchasing Personnel spending less time on

Purchase Orders.

Supply Chain Information Flows

Record and retrieve critical data.

Execute and control physical and monetary flows.

Automate routine decisions.

Support planning activities.

Move and share information across firms and

between users.

Directions of Linkage

Information flow to link firm with Customers CRM

Information flow to link firm with Suppliers SRM

Information flow to link within firms ISRM

Network Design Applications

Directions of Linkage

SRM

ISRM
ERP

CRM

CRM / SRM Applications

SRM Applications

CRM Applications

Design Collaboration

Market Analysis

Sourcing Decisions

Sell Process

Negotiations

Order Management

Buy Process

Call / Service Centre Mgmt.

Supply Collaboration

ERP Applications

Enterprise Resource Planning is a company wide

computer software system used to manage and
coordinate all the resources, information and functions of
a business from shared data stores.

ERP system has modular hardware, software units and

services that communicate on a Local Area Network.

ERP System

Advantages of ERP System

Integration among different functional areas to ensure proper

communication, productivity and efficiency.

Order tracking, from acceptance through fulfillment

The revenue cycle, from invoice through cash receipt

Managing inter-dependencies of complex processes.

Tracking the three-way match between Purchase Orders ,

inventory receipts, and costing.

Advantages of ERP System

The accounting for all of these tasks: tracking the

revenue , cost and profit at a granular level.

Eliminates the problem of synchronizing changes

between multiple systems.

Provides top-down view of the enterprise.

Reduces the risk of loss of sensitive data by consolidating

multiple permissions and security models into a single
structure.