Supply chain Management session-2

1. Supply chain Management session-2 • Role of Information Technology in SCM • 1) Modern IT system includes many component like Data, programmes , printed reports, screen images , network connections etc. The IT architecture” describes how these components are tied together. Objective of an architectural design is to ensure optimal level of usability, scalability &flexibility

2. IT architectural design keeps following factors in mind These are 1) Efficiency 2) Security 3) Error free operation 4) Load branching A typical architecture will have three layers 1) Data Layer 2) Application Layer & 3) Presentation Layer Data layer- This layer includes the physical and logical data store along with the logic to recive request and send data to the application layer Application layer- It is also called logic layer or rules layer

3. This layer includes all programmes which performs business processing. The extraction of data , the logic to manipulate it, and the selection of the data sub set for the purpose of presentation will be handled in this layer e,g application layer will access the inventory data, process it as per defined rules and forward the sub-set of data to the Presentation layer. Presentation layer is also called User-Interface Layer. This layer includes all programmes, display formats, objects and technique to present the information to the user. The information may be presented as printed reports, screen images , messages on personal devices

4. Portal, JSP, ASP ,WEB browsers etc Presentation layer Integration layer Analysis, Reporting intelligence Transaction Engine Application Layer Transaction data Data Layer

5. Current Practice • Design of Information technology for supply chain Key function of information technology is manufactured and distribute information to be used by the business . For using I.T effectively , organization has to take a strategic view of supply chain management and go beyond technology in several organizational area. Following four factors are important- 1) Supply chain managers must play a principal role in determining what information has to be manufactured for their use

6. Supply chain managers have to be change oriented in the way they manage the Supply managers. They must be careful that each new initiative creates an Incremental value for the enterprise. All such initiatives will require accurate and timely data from supply chain operations and ability to perform data Analysis. They must be familiar with what the information technology can do. 2- IT department must accept the responsibility of educating the supply chain Managers about how and where the information technology can create an Advantage . IT organization need to get more business-oriented, consultative And initiative driven

7. Information technology has helped in big way in developing the Information Management system for supply chain managers and for the organization . Major aspects of Information management system are- 1) connecting customers, suppliers , and/or partner 2) Optimizing organizational effectiveness 3) Optimizing enterprise- wide Information system 4) Developing an E-business activities

8. 5)Using IT for competitive breakthrough 6)Organizing and utilizing Data 7)Integrating Information system with Internet Various business process must considered for the effectiveness these are 1) Customer service 2) sales 3) Accounting /billing/ finance 4)Order processing 5)Delivery/logistics

9. Positioning Information in Logistic • Logistics information system has two types of flows , incorporating Coordinating and operational activities scheduling and requirement planning will form the part of coordination flow. Initiation and tracking of receipts , inventory assignment, shipment of replenishment and customer order will form the part of operational activities

10. Coordination Activities Manufacturing Plan Procurement plan Capacity Plan Logistic Plan Strategic Plan Inventory Management Operational Activities Order management Transportation distribution Purchasing Order process Logistic information flow

11. Concerns in Information management • The effectiveness of information management is central and critical to the successful execution of logistics and supply chain responsibilities and processes The most important information need relates to Customer. Quality of information depends on three factors 1) Availability of information

12. contd • 2) accuracy of information • 3) Effectiveness of information The emergence of new dynamic customer requirements have largely been responsible for emergence of innovative , contemporary Logistics network Effective use of available information may result in improved supply chain management

13. Warehousing Decisions • Warehousing decisions are based on many factors • Nature of product • Market segmentation • Location based on facilities Connectivity by rail and road To illustrate these aspects let us take one situation This is related to food grains it is well known fact that We produce various varieties of Grains like Wheat, Rice Bajra. Gram, Pulses of many varieties

14. It is also a known fact that these food grains are not Produced throughout the year hence need to be stored Food corporation of India is capable of Knowing the Likely output of these hence can review the capacity Of existing warehouses and if the out-put of these Agricultural produce is likely to grow year by year., decision can be taken to create additional warehouse.

15. A question may arise as to where this warehouse is to be located .In order to take that decision Transportation Cost and availability of land will be crucial factor. Let us take the case of white goods , as these are used by Consumers of all the cities and developing town. Distributors and agencies are selected so that the Product are stocked at suitable warehouses/ go-downs

16. Now I will share with you about the warehousing of spare parts of an automotive manufacturing company Any automotive company will like to generate addition Income by way of selling the spare parts, however it is not only income, other consideration is that spare parts are available genuine quality and at required time. Thus design of ware house has to take care of big patrs

17. Backdoor , cross members , and other items like Windshields, backdoor window glasses which are fragile in nature .spare parts planning and procurement Manager has to obtain the off-take requirement from every Dealer so that planning can be done to get these Parts in the warehouse. We have already shared that following functions are done - 1) Receiving of parts .

18. Adequate space planning need to be done to see that Trucks which are bringing the parts are parked Suitably and unloading of parts are done smoothly Sufficient space to be provided for movement of Trollys and inspection area for checking of parts. In warehouse many types of Material handling Equipments are used, space to be provided for their Movement and parking when not in use.

19. Other operations like binning , Picking, consolidation ,Packing ,Loading on to logistic companies carriers i,e Trucks, containers,etc will also occupy space hence planning of Space must take these factors into consideration. In case of automobile spare parts components can be classified on the basis of dimensions and weight hence warehouse can have multi-stories