Professional Documents
Culture Documents
Information
Technology in
Supply Chain
Management
Submitted to:
Submitted by:
Mir Asif Ahmed
ID: 617-35-28-062
Course:
Date of Submission:
Table of Contents
Roll of Information Technology in Supply Chain Management ...................................................... 4
Supply Chain Management: - ...................................................................................................... 4
Definition by Institute for Supply Management: - ...................................................................... 5
Definition by the Supply Chain Council: - ................................................................................... 5
Important Elements of Supply Chain Management: - ................................................................ 5
Information Technology: - ........................................................................................................... 6
Role of Information Technology in SCM: - ...................................................................................... 8
Standardized production:- .......................................................................................................... 9
Improved quality:- ....................................................................................................................... 9
Better communication:- .............................................................................................................. 9
Proper flow of information:- ....................................................................................................... 9
Time saving: - .............................................................................................................................. 9
Cost saving:- .............................................................................................................................. 10
Efficiency:- ................................................................................................................................. 10
Competitive advantage:- ........................................................................................................... 10
Avoid Collusion:-........................................................................................................................ 10
Collaboration:-........................................................................................................................... 10
Globalization: ............................................................................................................................ 11
Key suppliers certifications:- ..................................................................................................... 11
Fewer errors:- ............................................................................................................................ 11
Customer reviews:- ................................................................................................................... 11
Prompt delivery:-....................................................................................................................... 11
Opportunities for taking calculative risks:- ............................................................................... 11
Less paper work:- ...................................................................................................................... 12
Process Automation:- ................................................................................................................ 12
Alternative Suppliers:- ............................................................................................................... 12
Few IT based approaches to the Supply Chain Systems: -............................................................ 12
Real Life Example: A case of Bangladeshi Company Adopting Information Technology in Supply
Chain Management....................................................................................................................... 13
A brief about the Company:- ........................................................................................................ 13
Their working Strategies:- ......................................................................................................... 13
Here we will have a look at their basic working Strategies................................................... 13
Implementation of Information Technology in SCM:- .............................................................. 13
From purchasing raw materials to distribution to the customers, Bangladesh Toyota Ltd.
reinforces their IT infrastructure in an optimal way. ............................................................. 13
Let’s travel a bit deeper into their IT implementation in Supply Chain Management System.
............................................................................................................................................... 13
Supply Chain Planning software (SCP): .............................................................................. 13
Supply Chain Execution software (SCE): ............................................................................ 13
Website: - .................................................................................................................................. 14
Radio Frequency Identification (RFID): - ................................................................................... 14
RFID in manufacturing processes means: ................................................................................. 14
RFID in warehouse processes offers: ........................................................................................ 14
RFID in container management and tracking: .......................................................................... 15
RFID in distribution processes: .................................................................................................. 15
ERP:- .......................................................................................................................................... 15
Enterprise resource planning (ERP) is a term used to refer to a system that links
individual applications (for example, accounting and manufacturing applications) into a
single application that integrates the data and business processes of the entire business. .... 15
They have an ERP tool to get the things done properly. Centralized database is used to
connect all the sectors together. ............................................................................................. 15
ERP software enables them to get all the information and current status of all level’s
transaction in an automated system. Talking to one of the employees gave me a clear
indication that Their ERP implementation has helped them to do all th things in a more
optimized and efficient way. ................................................................................................. 15
Use Social Media to Streamline Supply Chain:- ............................................................................ 16
Outsourcing: - ............................................................................................................................ 16
Computerized Shipping and Tracking: - .................................................................................... 16
Online Bidding to select suppliers: -.......................................................................................... 17
How Information technology optimized their SCM:- ................................................................... 17
CRM:- ......................................................................................................................................... 17
Proper monitoring:-................................................................................................................... 17
Tractability:- .............................................................................................................................. 17
Space Shifting: - ......................................................................................................................... 18
Mobility: - .................................................................................................................................. 18
Fraud management System:- .................................................................................................... 18
Improved global competitiveness: -.......................................................................................... 18
Improved distribution process :- ............................................................................................... 18
Strong Control system:- ............................................................................................................ 18
Simplified Supply Chain process:- ............................................................................................. 18
Optimization: ..................................................................................................................... 19
Reduced labor cost: ........................................................................................................... 19
Customer Satisfaction/ Responsiveness:- ................................................................................. 19
Reduced Stuffing levels:- ........................................................................................................... 19
Reduction of processing cycle time:- ........................................................................................ 19
Improved purchasing decision:- ................................................................................................ 19
Raw materials Just in Time:- ..................................................................................................... 20
Availability in case of emergency:-............................................................................................ 20
Improved order process speed:- ............................................................................................... 20
Better opportunities for innovation:......................................................................................... 20
Capability to capture reliable and real time information:- ....................................................... 20
Email:-........................................................................................................................................ 20
Flexibility:- ................................................................................................................................. 21
Reduced unused materials:- ..................................................................................................... 21
Target Market and demand:- .................................................................................................... 21
Roll of Information Technology in Supply Chain Management
Information Technology: -
Information technology (IT) is the use of any computers,
storage, networking and other physical devices, infrastructure
and processes to create, process, store, secure and exchange all
forms of electronic data.
Typically, IT is used in the context of enterprise operations as
opposed to personal or entertainment technologies. The
commercial use of IT encompasses both computer technology
and telephony.
The term information technology was coined by the Harvard
Business Review, in order to make a distinction between
purpose-built machines designed to perform a limited scope of
functions and general-purpose computing machines that could
be programmed for various tasks. As the IT industry evolved
from the mid -20th century, it
encompassed transistors and integrated circuits computing
capability advanced while device cost and energy consumption
fell lower, a cycle that continues today when new technologies
emerge.
Improved quality:-
IT helps to complete all the procedures within limited time and
cost. So the quality should also be improved if the beneficial
parts are properly applied on the purchasing and supplying
decisions.
Better communication:-
CRM software helps to communicate in real time among the
suppliers, customers, employees, stuffs and owners. Better
communication can lead to a efficient valance an organization
looks for.
Time saving: -
IT certainly helps to get the things done lot quicker as it could
need if done without the help of Information Technology.
Cost saving:-
Cost and revenues are the main objects of any business
procedures. Using Information technology, we get the
transactions done in an automated way and that reduces a lot of
costs of being dependant on paper work.
Efficiency:-
Efficiency Means getting the maximum output using the
minimum possible input.
Competitive advantage:-
This Era is all about capturing the latest technology faster than
your competitors. If you can’t cope up with the latest
technology, your competitors will not bother you leave behind.
Avoid Collusion:-
Proper flow of information leads the employees to be aware of
all specific situations. So there shouldn’t be any collusion
between the stuffs.
Collaboration:-
Achieving the same goal should be the motive for all the stuffs
and employees of an organization. IT helps all to keep track of
all the transactions and that collaboration is shared between all
the team members.
Globalization:
- IT helps to get connected with the outside world
and international business trends. So globalization is eased in
this regard.
Fewer errors:-
Human made errors are generated more frequently than the
machines because machines like computer run through coding.
So if the coding is implemented properly into a software or tool.
Then possibility of error will obviously be less.
Customer reviews:-
Customer engagement has already gone to a high note. They can
opt their opinion anytime sitting at anywhere with the help of
internet.
Prompt delivery:-
Delivery is ensured within the deadline as Information
Technology helps us to get connected properly and be aware of
the current market demand.
Opportunities for taking calculative risks:-
Searching on the internet, we can research about the past
transactions and future opportunities. That certainly aids to take
new initiatives to reinvent the business model ensuring that the
risk is within the limits.
Less paper work:-
Requirement of less paper work is one of the most noticeable
benefits of IT in SCM. All the records are documented
automatically in website or any software. So the need of paper
work is lessened.
Process Automation:-
All the processes are automated so the hazards of paper work
and insecure transaction are totally avoided.
Alternative Suppliers:-
Technology helps to get many suppliers in one market place like
any bidding platform. So it needs less time to have a list of
suppliers available when needed.
ERP:-
Outsourcing: -
Bangladesh Toyota Ltd. Also uses online outsourcing while it’s
tougher and costlier to purchase locally. When purchasing from
local area costs more, then Outsourcing is absolutely a cost
effective way.
Proper monitoring:-
Through RFID or ERP proper monitoring is ensured.
Tractability:-
It’s easy to track through RFID or website. So purchasing
function got improved in that company.
Space Shifting: -
In case of outsourcing or online bidding, space is not a big
issue anymore for Toyota Ltd. They can purchase raw
material or select suppliers from any part of the world.
Mobility: -
By the blessing of Information Technology, everything is
dynamic and mobile in Toyota Bd.
Email:-
For supplier certification, they use mail for keeping the
record and reducing the cost of paper work.
Flexibility:-
Supplier relationship management is also enriched through
their participation with the organization in Internet world.
So they can be a bit flexible as company demands them to
be.