I T i n S C M

Effectiveness of IT in SCM
Its emergence and its role in various domains of Supply Chain
 01 Evolution and growth of information systems
in Supply Chain Management
Agenda
02 Functional integration of Supply Chain

03 Intra-firm and inter-firm information systems

based on extranet/intranet

04 Decision Support Systems in SCM

 05 Transportation management system

Agenda 06 Warehouse management system

07 Latest trends in technology implementation

in SCM

08 Challenges in implementing technology

(ICT) in SCM

09 AI in SCM
Why Information Systems
Traditional View of Supply Chain
1. Focus on competition
2. Supply Chains contain far more
than the required inventory
3. Products are handled too many
times (5/6 average)
4. Physical carriers struggle to
maintain costly equipment on slim
margins
5. No player has enough information
to synchronies /optimizes the entire
chain
Consequences of Traditional View
1. Lack of knowledge of the end-to-
end demand function – high levels
of uncertainty
2. Erratic variations in demand (Bull
whip effect)
3. Fragmentation of processes and
operations
4. Lack of process integration with
partners
5. Need for integrated information
systems
 Evolution of IS(T) in SCM
Systems
Electronic Commerce
• Data Warehouse
• Enterprise Resource • Amazon
Planning (ERP) • Flipkart
Tools • Myntra
• Electronic Data • ALibaba
Interchange
• Transportation
management system

Future of IS in SCM
Barcode Scanning RFID
• Artificial intelligence
• Application of Radio Frequency
• Advanced analytics
barcode scanners in Identification Both
• Internet of Things
the checkout RFID and Bar codes
(IoT)
counters of super are indeed, quite
• Intelligent things
market. similar, both being
• Conversational
• Tracking the moving auto- ID technologies
systems
items like elements
• Robotic process
in PC assembly
automation
operations and
• Immersive
automobiles in
technologies
assembly plants
• Blockchain
 Barcode Scanning and RFID

We can see the application of barcode scanners in the checkout counters of super market. This code
states the name of product along with its manufacturer. Some other practical applications of barcode
scanners are tracking the moving items like elements in PC assembly operations and automobiles in
assembly plants.

Radio Frequency Identification Both RFID and Bar codes are indeed, quite similar, both being auto-
ID technologies, which are intended to provide item identification. The primary difference is the
reading data from the items. In bar coding, the reading device scans a printed label with optical laser
or imaging technology and in RFID; the reading device scans a tag by using radio frequency signals
 ERP

Enterprise Resource Planning

Enterprise Resource Planning (ERP) Systems Enterprise Resource Planning (ERP) Systems are
Enterprise-wide Information Systems used for automating all activities and functions of a business.
Basically these are transaction - based information systems that are integrated across the whole
business
Enterprise Resource Planning
 Data Warehouse

• Data warehouse can be defined as a store comprising all the databases. It is a centralized
database that is prolonged independently from the production system database of a company.

• Many companies maintain multiple databases. Instead of some particular business processes, it is
established around informational subjects. The data present in data warehouses is time
dependent and easily accessible. Historical data may also be accumulated in data warehouse.
 Inter firm and Intra firm
Similar
With Business
It means comparing the two or more than Units
two similar types of business units.

The objective here is to find to suitable

position with regard to competition , also
in order to increase profit as well as the Within
product. it's actually a tool for the
management of a firm in order to compare
the performance as well as the result It is actually about the comparing of two
more than two department of the same
firm or the business unit.
With Similar
The main objective here is to improve
Businesses the efficiency and analysis the
performance of departments.
 Intranet vs. Extranet

Extranet is to use
Internet technology and
protocol for the internal
and suppliers’
communications

EXTRANET INTRANET
Intranet is to use Internet
technology and protocol
(TCP/IP) for the internal
communications
Information
use and
adoption
 Decision Support Systems in SCM

 Introduction to DSS
• .
 Three major componenrts to DSS
 Examples
 Introduction to DSS

 Supply chain management problems are not rigid and require not just computer
 but human knowledge to effectively manage the systems.
• DSS
 . systems are meant to help ensure that analysis is easily understood with the
help of computers.
 DSS in supply chain management is often called Advanced Planning and
Scheduling (APS) systems.

 The systems help create solutions in the following areas:

 Demand planning
 Supply planning
 Manufacturing planning and scheduling
 Three major components of DSS

i. Input data:- This is a database which has the basic information required for decision
making. It can come in the form of a data warehouse where all the company’s past
• .
transaction are stored; distributed databases that are accessed through a network or a
PC-based database extract used for a specific problem.
Component Data
Manufacturer Location, production capacity, production costs,
transportation costs to warehouse
Warehouse Location, fixed costs, variable costs, inventory
turnover, transportation costs to retailers
Retailer Location, demand for product annually
Product Volume, weight, holding costs
 Three major components of DSS

ii. Analytical tools:- Once data has been collected it needs to be analyzed and tools that
may be used to do this are as follows: Queries, Statistical analysis, Data mining,
Calculators, Simulation, Artificial Intelligence, Mathematical models and algorithms

iii. Presentation tools:- These display the results of the data analysis. Data visualization
techniques are used to help the user understand the output data

Examples:
Example A: Amoco Chemical Corporation
Example B: Nestle
Example C: Autozone
Latest Trends In Technology Implementation In SCM

Supply Chain
Analytics and
Optimization
Analysis
Apps

Artificial
Supply Chain Intelligence
Software (AI)

Supply
Business
Chain
Events
Security

Robotic
Processes Wage Raises
Automation (RPA)

Internet of End Users Are

Things (IoT) Top Priority
 Transportation Management System

Introduction

• A transportation
• . management system, or “TMS,” is a platform that’s designed to
streamline the shipping process.
• It is a subset of supply chain management concerning transportation solutions.
• A TMS allows shippers to automate the processes they have in place and receive
valuable insights to save time and reduce spend on future shipments.
• A transportation management system (TMS) is a subset of supply chain
management concerning transportation operations and it’s a part of an enterprise
resource planning system.
 Transportation Management System

KEY FEATURES

• Optimization
• .
• Execution
• Performance management
• .
 Transportation Management System

Major Components

• Process
• . Discipline
• Increased Transparency
• Change Management
• Better Connectivity
• Constant Evolution
 Role of TMS IN SCM

• .
 Transportation Management System

FUNCTIONALITIES
• Planning and optimizing of terrestrial transport rounds
• Inbound and outbound transportation mode and transportation provider selection
• .
• Management of motor carrier, rail, air and maritime transport
• Real-time transportation tracking
• Service quality control in the form of KPIs
• Vehicle Load and Route optimization
• Transport costs and scheme simulation
• Shipment batching of orders
• Freight Negotiation
• Cost control, KPI (Key performance indicators) reporting and statistics
• Freight Audit
 Transportation Management System

Advantage in Using TMS

• Increased Customer Service
• Warehouse Efficiency
• .
• New Delivery Capabilities
• Inventory Reductions
• Cash Flow Improvements
• Track deliveries in real time
• Reduce freight expenses
• Transportation order planning and execution
• Supply chain visibility and better control of inventory management
• Reduction of invoice errors
 Challenges in Implementing Technology in SCM

• suppliers and partners unwilling to compromise

• staff struggling to adjust to new processes and tools
• lack
• .
of practice and training before implementation
• difficulties with communication internally and externally
• customers concerns, issues and poor experience
 Artificial Intelligence in SCM

Introduction

• Professionals associated with logistics and supply chain are always on their heels to
• .the operational chain innovatively that address the challenges more efficiently
shape
and minimize the risk that caused otherwise.
• When the professionals hunt for new possibilities, technology is always there for help!
Although the concept of Artificial Intelligence is six decades old, it is well on its course
to take over the lives of people slowly by making it easy and efficient.
• Most of the businesses take interest in integrating AI into various processes as it is
capable of performing various tasks efficiently within a short span. And use of the AI
is not just limited for corporate, but also seen in various industries.
 Artificial Intelligence in Supply Chain

• According to the Accenture digital operations survey, organizations are rapidly

digitizing their supply chain to distinguish and drive revenue growth.
• .
• The report also says that 85% of businesses integrate AI in their supply chain by next
year.
• The main objective behind integrating AI is that it plays a vital role in optimizing
business process and establishes agile supply chain.
• Assimilating Artificial Intelligence (AI) in Supply Chain eventually results in redefining
an ecosystem where supply-chain link themselves to generate impeccable flow of
products and information end-to-end.
 The Fusion Of AI In SCM

• Artificial Intelligence is always used to solve complex problems.

• .
• The sub-disciplines of artificial intelligence such as GA’s and expert systems are
employed to address the complex issues of Supply Chain Management.
• It involves inventory management, location planning, purchasing, freight consolidation
and routing or scheduling problems.
• Further, in this blog, let us outline the significant areas of supply chain management
that have been explored for AI, identify the specific sub-disciplines and assess their
involvement in supply chain decision-making process.
 Inventory control and planning

• The inventory in supply chain represents the idle resources that are essential to
maintain
• . excellent customer service.
• According to the survey conducted by the Timme and Williams-Timme, maintaining a
single unit of inventory may costs approximately 15% to 35% of the product value.
Thus, the organization’s success in the highly competitive market often hinders its
ability to control and plan its inventory efficiently.
• Aforesaid challenges can be successfully addressed by accessing the real-time
information about the customer demands, size and type of the inventory and the
estimated time to fulfil customer orders.
• The Expert System (ES) is capable of capturing the inventory patterns throughout the
whole supply chain at all layers, in detail.
 Conclusion

• Aforesaid examples clearly represent that in today’s dynamic world, embedding

• . intelligence into supply chain offers a competitive advantage.
artificial
• The AI is completely armed with predictive analytics that can analyze cluster of data
collected through various sources.
• Analyzing these data help companies to develop an efficient form of supply chain
management.
• .
Thank You
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