Part 14 Supply Chain Management

Third Year Information Technology

MANAGEMENT INFORMATION SYSTEM

Tushar B Kute,
Sandip Institute of Technology and Research Centre, Nashik http://www.tusharkute.com

SUPPLY CHAIN MANAGEMENT

SCM is an enterprise software to manage and integrate a network of customers, suppliers, business partners, distributors into organizations internal supply network involved in the ultimate provision of product and service packages required by end customers. SCM system keeps track of inventory and value of material throughout the chain and provides information to SC manager to act.

SUPPLY CHAIN MANAGEMENT

Value Chain Supply side- raw materials, inbound logistics and production processes Demand side- outbound logistics, marketing and sales.

TRADITIONAL SCM

SUPPLY CHAIN MANAGEMENT

" Is the strategic management of activities involved in the acquisition and conversion of materials to finished products delivered to the customer"

Supplier Management

Material Flow Information Flow

Stock Deployment

Customer Management

Schedule / Resources

Conversion

Delivery

Leads to Business Process Integration

PROCESS VIEW OF SCM

INTEGRATED FLOW OF INFORMATION

SUPPLY CHAIN MANAGEMENT

Supply chain is the system by which organizations source, make and deliver their products or services according to market demand. Supply chain management operations and decisions are ultimately triggered by demand signals at the ultimate consumer level. Supply chain as defined by experienced practitioners extends from suppliers suppliers to customers customers.

SUPPLY CHAIN INCLUDES

Material Flows Information Flows Financial Flows

SCM IS FACILITATED BY
Processes Structure Technology

SUPPLY CHAIN SERVES TWO FUNCTIONS

Physical Market mediation

SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN ILLUSTRATION

EXAMPLE: DENIM JEANS

EXAMPLE: DENIM JEANS

SUPPLY CHAIN PROCESSES

SCM: REAL TIME BENEFITS

Global trading capabilities Global knowledge exchange Global communities Collaborative workflow Industry specific marketplaces Enterprise to enterprise connectivity E-marketplace to e-marketplace connectivity

MAJOR TRENDS

Consumer trends
Speed

of service Self service Integrated solutions

Service/Process trends
Convergence

of sales and service Ease of use: making service consistent, reliable Flexibility and convenient service delivery Streaming the supply chain

MAJOR TRENDS

Organizational trends
Contract

manufacturing: becoming brand-

intensive Business process outsourcing Increasing process transparency and visibility Constant innovation and employee retention.

Enterprise technology trends

Enterprise

applications: connect the corporations Infrastructure convergence: melding voice, video Multichannel integration: computer telephony

SUPPLY CHAIN: CASE STUDY

SUPPLY CHAIN: CASE STUDY

SUPPLY CHAIN: CASE STUDY

SUPPLY CHAIN: CASE STUDY

SUPPLY CHAIN: CASE STUDY

Manufacturer Distributor Distributor

Manufacturer

Customer

Reseller
Customer

Customer

REFERENCES
Waman Jawadekar, "Management Information Systems , 4th Edition, Tata McGraw-Hill Publishing Company Limited. P.T. Joseph, S.J., E-Commerce: An Indian Perspective, 2nd Edition, Prentice Hall of India. http://www.supplychain.org

Tushar B Kute,
Sandip Institute of Technology and Research Centre, Nashik http://www.tusharkute.com