Shows how IT has changed the way Supply Chain works today. Includes EDI, ERP, Barcode and RFID.

1. IT
BY: SINDOOR NAIK
ANSH AGARWAL
in SCM

2. Supply chain management
(SCM) is concerned with the
flow of products and
information between supply
chain members' organizations
WHAT IS SUPPLY CHAIN
MANGEMENT?

3. The IT Boom !Information flow in Supply chain prior to 1990s
The importance of information in an
integrated SCM environment:

4. EDIBenefits of EDI
• Speed
• Data transfer in real-time, no time shift (⇒ almost no time shift between sending and
receiving)
• Reduction of human failure rate by re-keying data
• General cost saving (no more people, no more paper, faster data processing, etc.)
• Reduced purchasing costs
• Reduced cost by effective information processing ⇒ rationalization
• Greater flexibility
• Saved time
• Better information
• Better collaboration
• Higher transparency

5. What is ERP?
ERP attempts to integrate all departments and functions across a
company onto a single computer system that can serve all those
different departments’ specific needs
ERP

6. Explanation
Logistics
Production
HR
Finance
Marketing
& Sales
 Enterprise does business and to do
business it needs tools
 An Enterprise has departments

7. In early 1970s ……

8. In 1990s

9. Drawbacks
 Multiple software systems, databases and platforms
 No streamlining processes and workflows
 Redundant data entry and processes
 No shared information across departments
 Slow workflow and low efficiency
 Less customer satisfaction

10. Solution ?
HIRE
SUPERMAN !HIRE A SMART SOFTWARE !
“ ERP ”

11. Moving to ERP
 Expensive
 Customization is limited
 The system may suffer from weakest link i.e. an
inefficiency in one department can effect other
departments

12. ERP Vendors
SAP
Microsoft Dynamics
Oracle
Sage
SYSPRO

13. The Supply Chain’s Strategic
Importance
Supply chain management is the integration of the activities
that procure materials and services, transform them into
intermediate goods and final products, and deliver them
through a distribution system
Competition is no longer between companies; it is
between supply chains

14. Radio Frequency Tags
Radio Frequency Tags: Keeping the Shelves Stocked
Supply chains work smoothly when sales are steady, but often break down
when confronted by a sudden surge in demand. Radio frequency ID (or RFID)
tags can change that by providing real-time information about what’s
happening on store shelves. Here’s how the system works for Proctor &
Gamble’s Pampers.

16. Bar Code System (BCS)
 The bar code system is an identification technology wherein there is
placement of computer-readable codes on items, cartons and containers in
the form of grouping of parallel bars (usually blocks) of different widths
separated by light spaces (usually white), again, of different widths.
 It facilitates speedier flow of logistical information such as quick tracking
receipts, movement details, product identification, etc., with a lesser
probability of error .

17. Characteristics of a Typical Bar Code

18. Benefits of Bar Code System
 Speeds up data entry process
 Enhances data accuracy
 Reduces material handling labour
 Minimizes on-hand inventory
 Monitors labour efficiency
 Improves customer service

19. Benefits of Bar Code System
 Reduces product recall
 Verifies orders at receiving and shipping
 Reduces work-in-process idle time
 Monitors and controls shop floor activity
 Improves shop floor scheduling
 Optimizes floor space
 Improves product yield or reduces scrap

20. THANK YOU