INTERNET ENABLED

SCM
PRESENTED BY: ANURUPA GANGULY
1. The combination of computers and telecommunication provided the fastest device of
communication in the form of Internet.
2. Internet today is becoming the reliable link between the suppliers and customer. It turned the
whole world into a global village.
3. Due to globalization all geographical barriers are being broken. With the help Internet
customers get free information about the world market. They keep track of the products being
produced in the market. They have easy access to the world class quality and respective price.
4. High competition, zero monopoly in the market.
5. It allowed the better utilization of existing facilities and minimized the amount of materials in
the stock at any time and reduced the wastage.
6. Manufacturer has to be very flexible to reorient the manufacturing process to meet the
frequent design changes resulting from the frequent change in the customer’s choice. Now the
customer’s satisfaction is not the only criteria for selling the product in the market but
customer’s delight has also to be taken care off. The erstwhile ‘Seller’s market’ has today being
transformed into a ‘buyer’s market.
7. Earlier producers use to fix the price of the products keeping profit margin, now prices are fixed
by the customer’s market and to earn profit producers have to reduce the manufacturing cost.
In this changing environment conventional system of planning, manufacturing and delivery of
finished products becoming irrelevant. Information Technology offers many opportunities for
companies to cut cost and improve responsiveness to customer’s needs.
BENEFITS OF IT ENABLED SERVICES:
1. Information technology is comparatively less
capital intensive.
2. It is environment friendly and clean.
3. It is not location specific and can be undertaken
from anywhere (large cities, small towns or even
remote locations with Internet facilities)
4. It does not require expensive infrastructure
facilities like roads, rail heads, etc
VARIOUS IT SOLUTIONS
Communication: Internet is currently an important resource for business to conduct activities
ranging from basic communication to data exchange. Application of radio frequency, satellite
communications and image processing technologies has become useful. Instead of solely on
catalogs, suppliers are delivering product information to customer as data via Internet, making it
more convenient to buyers.
Electronic mail (e-mail): Electronic mail provides medium for communication throughout the globe,
any time, within fraction of second at virtually negligible cost. Electronic mail usually occurs over
the Internet. The electronic mail market is a multi billion-dollar business. One of the main reasons
for the growth in e-mail, in addition to the speed and accuracy of its data transmission is cost
saving. With e-mail, the cost of ordering has been reduced. Instead of relying on the post, mail or
courier the inventory manager prefer to use Internet for sending information.
Electronic Data Interchange (EDI): The communication system with suppliers on the supply side and
customer on the distribution side exchanged the data through Internet at very low cost. For safety,
electronic data exchange information is only available to those who have a dedicated electronic
data interchange link. Location tracking of cycle inventory or process inventory can also be done.
This technology requires a combination of the Global Position System and wireless communication.
Enterprise Resource Planning (ERP): Using Enterprise resource planning information can be
gathered from across all of company’s function. ERP system monitor inventory throughout the
channel of a business system. The ability to keep track of inventory at different level has become
more important as business system became more complex. But this is useful OEM where many
components are handled.
Communication
(a) Twenty four hours communication throughout the year all over the world.
Because of Internet communication there are saving in manpower, stationery,
postage and journey fare.
(b) Quick exchange of views with suppliers or customers, quick exchange of ideas
and expertise, customer’s feedback collection becomes easier and quicker, quick
delivery of drawings and specifications in digital form etc. are possible.
Selection of vendor or partner
a) Suitable vendor selection from many vendors from any part of the world, at the
same time vendor development is also easier.
(b) Since whole world is connected through Internet, it becomes easier to select
business partners for joint venture.
Cost Saving
a) Reduce inventory, reduce cost of preparing letters and sending letters, saves
postage cost and saving in journey fare. There are saving under different heads to
all level of supply chain.
(b) Achieving order and placing order become less costly and also reduces cost of distribution.
Reduction of lead time
(a) Reduces lead-time of material supply.
(b) Reduces retrieval time of documented information.
Improves product Promotional Activities
a) Reduces expenditure for market expansion and also reduce market mediation
(b) Customer’s feedback can be collected easily, improves relation with customer
and helps in promotion of products in the form of advertisement.
1. Lack of manager’s awareness with the system and lack of management’s full commitments.
2. Development of electronic data interchange is a costly affair.
3. Problems of security and privacy.
4. Since no face to face contact is there hence, lack of trust.
5. Customers also need awareness for effective utilization of Internet in the business.
SCM SOFTWARE
SCM can be broken down into three main flows:
1. Product flow
2. Information flow
3. Financial flow
Applications
Successful supply chain management programs require sharing sensitive information between
various companies and departments. This is more difficult and riskier than sharing information
between different departments in a single organization. By sharing this data upstream (or with an
organization’s suppliers) and downstream (with an organization’s clients), SCM software applications
have the potential to improve the product time-to-market, reduce costs, and allow all parties in the
supply chain to better manage current resources and plan future events for future needs.
SCM software increasingly relies on web-based systems in order to let users in different
organizations, companies, and locations, using different internal networks and devices, link up and
share information. This shared information can reside in diverse databases or data warehouses, at
several different sites and in various companies. These types of SCM software are based on the
open data model. Predictions are that SCM software will move rapidly to cloud-based subscription
services, or SaaS technologies, rather than the traditional in-house software owner and installation
model.
TYPES OF SCM SOFTWARE
APPLICATIONS

1. Planning software applications use advanced algorithms to

determine the best way to fulfill a product order.
2. Execution or event management applications track the physical
locations and statuses of the goods, the coordination of necessary
materials, and financial data tracking for all parties involved.
FEATURES:
The execution or event management part of the application performs inventory tracking. This
involves interfacing with various sorts of detection devices such as barcode readers, radio
frequency identification (RFID) receivers, and cameras. The cameras can interface with optical
character recognition, or OCR, modules and they can read the labels off of the parts in the
inventory system. This is a digitized version of the older manual process of inventory taking.
More advanced visual imaging systems can identify the part by its shape and dimensions, so
mislabeled parts can be investigated and corrected. Barcode technology usually requires the
objects to be manually scanned since the barcodes may not be consistently placed in an
accessible side of the inventory part. RFID technology allows more remote monitoring since RF
is more flexible than visually based barcodes and camera systems. Also, the RFID chip can
store more data than a simple parts label, barcode label, or old style text. SCM software
typically has the drivers and modules to interface with the various visual and digital
recognition technologies mentioned above.
FEATURES:

The inventory items are usually inventoried along every step of the way from the extraction to
the final store shelf phase of its trip through the vertical supply system. Then the SCM
software will create and propagate reports to the various parties who need them at each level
of the supply chain.
These SCM software packages can cost a lot, sometimes over a million dollars (USD). It is
prudent to invest the time and research into any software decisions. As SCM software matures
and computing power increases, SCM software applications will get more detailed as new
features are added. As with a lot of these emergent software applications, the vendor prices
will widely vary. Third party software consultants can be a real asset for an organization in
order to choose the right supply chain management software for a reasonable price.