MICS ASSIGNMENT –A

Submitted By:
Swati Sudhir (09609057)
Neha Singh (09609192)
Rajat Mehrotra (06503874)

Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains
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For The Next 15 Minutes……
We will look into:

Current State of Supply Chain Management.

Drivers & Challenges of managing Information along

the supply chain.

An overview of the Potential Solution dealing with the

MICS Facets.

Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains 2
 INTRODUCTION
The old era treated Supply Chain Management mainly as
a back office function of managing the logistics of
Supply Chain.

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Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains
CHANGE IN SCENARIO……
 A new era of supply chain management is unfolding that
puts sustainability at the center of the executive agenda.

 Business success is no longer determined solely by the

traditional notions of shareholder value and customer
loyalty in isolation of society’s expectations.

 Companies are now required to be transparent about

their supply chain practices to respond to stakeholder
expectations and to meet increasing regulatory
requirements.

Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains 4
What is Sustainable Supply Chain??

 It is a system of aligned business activities

throughout the lifecycle of products that creates
value for all stakeholders, ensures ongoing
commercial success, and improves the well being of
people and the environment.

 Companies are expected to ensure that products and

services are both more sustainable in their usage and
disposal, and are produced, packaged and shipped using
more socially and environmentally responsible
manufacturing practices.
Date: 6th Aug, 2010 Perspective of
Information Management in Sustainable Supply
Chains 5
 Business Models for supply chain are evolving….
Decision Support Systems are successfully implemented
across various functions of the Supply Chain Management
framework.

Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains 6
Information Technology:
The Central Nervous System of Business
To respond to demands for responsible practices among
their supply chain partners, companies must equip their
organizations with tools to manage information related to
sustainability.
Information technology offers a foundation that
enables companies:
 to be accountable,
 to improve sustainable supply chain practices, and
 to respond more proactively to external pressures from
investment community, governments, media, business
partners, civil society, etc.

Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains 7
Drivers for Sustainable SCM
Investors (SRI’s and mainstream)

Regulations

International Standards

Consumers

Investors are paying attention to Triple Bottom Line to drive

agenda for sustainable development, managed under umbrella
of Environment, Society & Governance.
Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains 8
Companies facing Multiple Standards
& Regulations
Multiple standards and regulations are driving companies
to strive for greater visibility over their supply chains.

Regulations driving Supply Chain Transparency:

 U.S Farm Security Act & Rural Investment Act, 2002.

 European Union’s Restriction of Hazardous Substances
(RoHS)
 E.U Packaging Directive
 Waste Electrical and Electronic Equipment (WEEE)

Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains 9
 International Standards for
Sustainable SCM
Aimed at addressing social and environmental
issues in global supply chains.
WRAP
FLA
SA8000
ISO 14000
ISO 26000
International standards offer a partial blueprint for
where to begin development of a sustainable supply
chain.
Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains 10
 Company’s response & Industry
Initiatives
Aligning the supply chain with Regulations & International
standards offers an opportunity for the company to differentiate
in the marketplace & build competitive advantage.

Companies are ensuring proper management of

proprietary information on suppliers & products and
implement their own secure information repositories.

Initiatives such as Electronic Industry Code of Conduct (EICC)

and the Pharmaceutical Supply Chain Initiative (PSCI) are
creating synergies and efficiencies through industry
collaboration which helps in managing information &
communication flows along the supply chain.
Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains 11
 Challenges in Managing Supply Chain
Information
Transparency of Supplier Information across Functional and
Organizational Boundaries is limited:
Information is often not “passed through” to other functions,
operating units and Supply chain partners.

*Communication Gap:
Misalignment between companies, their suppliers & third parties.

Fragmented Supply Chain Information Management:

Regulatory data not managed by a Central Function of the
corporation, instead separate business entities take care of it.

*Identified as a critical factor.

Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains 12
Monitoring, Capability building and Training programs not
aligned:
Companies lack information to effectively train & build the
capabilities of suppliers. Lack of feedbacks upon the
progress of such programs which negates the possibility of
continuous improvements.

Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains 13
Proposed Solution to Information
Management in Sustainable Supply
Chain

Date: 6th Aug, 2010 Perspective of

Information Management in Sustainable Supply
Chains 14
Phase 1: Gain Transparency
“Ensures that right person has access to right information at
right time.”

Objectives to be achieved during this phase:

 Understanding risks throughout the supply chain.
 Making informed decisions about prioritization of
resources.
 Creating efficiencies and process control for a company’s
procurement and sustainability departments in managing
supplier data.

Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains 15
Phase 2: Communicate
“Supports communications so that sustainability considerations
can be incorporated within traditional supply chain processes.”

Objectives to be achieved during this phase:

 Achieving visibility and scale in communicating with a large

population of suppliers.
 Understanding the most prevalent compliance issues
throughout the supply chain.
 Aligning messages from commercial and sustainability
departments.
 Supporting efficient business processes to systematically
manage risks.
 Increasing supplier ownership of the process.

Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains 16
 Phase 3: Collaborate & Build Capacity
“Building of capabilities of supply chain partners to
continuously improve their performance.”

Objectives to be achieved during this phase:

 Ability to measure the return on investment from supplier

capability building programs.
 Taking pilot capability building programs to scale.
 Segmenting suppliers and targeting activities to the
highest need/demand.
 Facilitating collaboration at the local level among
companies, their suppliers, government and communities.

Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains 17
 Conclusion
Sustainable supply chain management will increasingly
become an important consideration for sourcing and
procurement departments, as well as the CSR, quality and
compliance functions.

Business has an opportunity to make a positive impact on

sustainable development while achieving commercial success.

Leaders who see this opportunity will create the right incentives
to align and automate all supply chain related information,
allowing more focus on making sustainable change in the
communities and environment in which we work and live.

Date: 6th Aug, 2010 Perspective of

Information Management in Sustainable Supply
Chains 18
Leaders will leverage technology to enable supplier
information transparency and sustainable supply chain
management as a core strategic goal and asset.
 Implement effective information management
systems to help facilitate comprehensive decision making
inside buyers’ firms, and between buyers and their
ecosystems.
Align internal corporate functions to create an
integrated approach externally to suppliers and
stakeholders.
Let us look at what IBM calls for the Future of Information
Management & Technology for SCM:
http://www.youtube.com/watch?v=G2qMklBMINA

Date: 6th Aug, 2010 Perspective of Information Management in Sustainable Supply Chains
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Date: 6th Aug, 2010 Perspective of
Information Management in Sustainable Supply
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