Role of Information Technology in Supply Chain Management presentation for MBA students

1. ROLE OF IT IN
SUPPLY CHAIN MANAGEMENT
By: Muhammad Asif
Roll No: 12662
Email: Asif07@icloud.com

2. Contents
• DEFINITIONS
• OBJECTIVE OF SCM
• ROLE OF IT IN SCM
• NEED OF IT
• FOR SUPPLY CHAIN
• ENTERPRISE RESOURCE PLANNING (ERP)
• BENEFITS OF ERP
• CRM AND ITS BENEFITS

3. What is Supply Chain Management(SCM)
Supply chain management:
(SCM) is concerned with the flow of products and information
between supply chain members' organizations.
“SCM is the integration of key business processes from the end user through
original suppliers that provides products, services and information and that
add value for customers and other stakeholders.”

4. OBJECTIVE OF SCM
Primary:
 Creating a value for a customer.
 Responds to customer needs and demand
Secondary:
 Profitability
 Responsiveness
 Turnover Rate
 Flexibility
 Communication & Coordination

5. Role of IT in SCM
A well managed supply chain links the suppliers, manufacturers, distributers and customers
by a suitable information system for controlling across boarder in order to achieve optimum
productivity, overall satisfaction and joyful relation at cheaper cost.
Quick and effective information system helps manager to understand the customer response,
their demands, inventory in the stock, how much to be produced and where to deliver and
when? Here comes the role of internet, which is considered as a cheapest inter-organizational
information system, which helps in aligning the interdependent strategies to achieve
cooperative rather than competitive role of SCM partners.

6. Need of IT
Information technology offers many opportunities for companies to cut cost
and improve responsiveness to customer’s needs. Some of the positive points
of IT enabled services are:
IT is comparatively less capital intensive.
IT is environmental friendly and clean.
IT is not location specific and can be undertaken from anywhere.
IT does not require expensive infrastructure facilities.

7. INFORMATION TECHNOLOGY FOR
SUPPLY CHAIN
Software Systems
 Enterprise Resource Planning (ERP)
 Electronic Data Interchange (EDI)
 Material Requirements Planning (MRP)
 Manufacturing Resource Planning (MRP II)
 Supply Chain Management Systems (SCM)
 Customer Relationship Management (CRM)
 Internet-based Software
 Network Infrastructure
 Wide Area Network
 Internet (for E-commerce: B2B, B2C)

8. ENTERPRISE RESOURCE PLANNING
(ERP) SYSTEM
 SAP R/3
Supports Forecasting, Scheduling, other Logistics activities
Oracle
Advanced Planning & Scheduling
PeopleSoft (have been merged by Oracle)
o Used By:
Toyota uses PeopleSoft and SAP

9. Essence Of ERP
Record day to day transection of running a business and provide
near real time access to information in a consistent manner
throughout the organization.

10. Benefits Of ERP
• ERP system can improve the efficiency of production and purchasing
processes.
• Efficiency begins with Marketing sharing a sales forecast.
• Production plan is created based on sales forecast and shared with
Purchasing so raw materials can be ordered properly.
• Companies can do production planning without an ERP system, but an
ERP system increases company’s efficiency .

11. What is CRM?
CRM stands for Customer Relationship Management. It is a strategy used to
learn more about customers' needs and behaviors in order to develop stronger
relationships with them. Good customer relationships are at the heart of
business success.
CRM is an information industry term for methodologies, software, and usually
Internet capabilities that help an enterprise manage customer relationships in
an organized way.

12. Continue…..
According to one industry view, CRM consists of: Helping an enterprise to
enable its marketing departments to identify and target their best customers,
manage marketing campaigns and generate quality leads for the sales team.
Assisting the organization to improve telesales, account, and sales management
by optimizing information shared by multiple employees, and streamlining
existing processes (for example, taking orders using mobile devices).
Allowing the formation of individualized relationships with customers, with the
aim of improving customer satisfaction and maximizing profits; identifying the
most profitable customers and providing them the highest level of service.

13. Further Benefit
• Many organizations turn to CRM software to help them manage their
customer relationships.
• CRM technology is offered on-premise, ondemand or through Software as a
Service.
• Recently, mobile CRM and the open source CRM software model have also
become more popular.