The Influential Role Of The Influential Role Of Information Technology Information Technology
In SCMIn SCMPrepared By : Inas M. Prepared By : Inas M. SrourSrour Arwa El Arwa El MasriMasri Zeiad Zeiad RamadanRamadanSupervised By: Ms. Supervised By: Ms. Rasha AtallahRasha Atallah
OutlineOutline• Introduction• Supply Chain• Supply Chain Management
– E- Supply Chain– E- Supply Chain Management
• E-Supply Chain Transactions over the Internet
• Infrastructure for E-SCM• Information Technology: A Supply Chain
Enabler
OutlineOutline
• Key Enabling Supply Chain Technologies: RFID
• Limitations of RFID Technology• The success factors of e-supply chain• Advanced Planning Systems• Advantages of applying technology on SCM
IntroductionIntroduction• Supply Chain Management has
generated substantial interest in recent years for a number of reasons.
• Managers in many industries now realize that actions taken by one member of the chain can influence the profitability of all others in the chain.
• increased globalization of markets and increasing international competition imply that firms in all nations will face similar, if not identical, competitive environments.
IntroductionIntroduction Cont.Cont.
• The companies are facing a severe competition in the international markets.
• Many manufacturing companies are forced to improve the quality of their products and reduce their manufacturing costs.
Definition of supply chainDefinition of supply chain
• The flow of materials, information, money, and services from raw material suppliers through factories and warehouses to the end customers
Supply Chain ManagementSupply Chain Management
includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.
E-Supply ChainE-Supply Chain
• A supply chain that is managed electronically, usually with Web technologies.
• SCM information systems use technology to more effectively manage supply chains
E-Supply Chain Management
• The collaborative use of technology to improvethe operations of supply chain activities as well as the management of supply chains
E-Supply Chain Transactions E-Supply Chain Transactions over the Internet:over the Internet:
• Providing information across the supply chain.
• Negotiating prices and contracts with customers and suppliers
• Allowing customers to place orders• Allowing customers to track orders• Filling and delivering orders to customers• Receiving payment from customers
Infrastructure for E-SCMInfrastructure for E-SCM
• Electronic Data Interchange (EDI)• Extranets• Intranets • Corporate portals• Workflow systems and tools• Groupware and other collaborative tools (
e.g. collaborative software)
• Note: collaborative software “ groupware” is software designed to help people involved in a common task achieve their goals.
Information Technology: A Information Technology: A Supply Chain EnablerSupply Chain Enabler• Information links all
aspects of supply chain• E-business
– replacement of physical business processes with electronic ones
• Electronic data interchange (EDI)– a computer-to-
computer exchange of business documents
Internetallows companies to communicate with suppliers, customers, shippers and other businesses around the world, instantaneously
Key Enabling Supply ChainKey Enabling Supply ChainTechnologies: RFIDTechnologies: RFIDOne of the key enabling technologies is:
• Radio Frequency Identification (RFID)
⁻ RFID is a dedicated short range communication (DSRC) technology⁻A technology that uses radio waves to identify objects such as goods in supply chains.⁻Used to track goods in supply chain⁻RFID tag attached to object
Key Enabling Supply Key Enabling Supply ChainChainTechnologies: RFID Technologies: RFID Cont. Cont.⁻ Similar to bar codes but uses radio
frequency to transmit product information to receiver
⁻ RFID eliminates need for manual counting and bar code scanning
⁻ Supply chain management forms the major part of retail business and RFID systems play a key role by managing updates of stocks, transportation and logistics of the product.
Limitations of RFID Limitations of RFID TechnologyTechnologyA. Cost: the major drawback of RFID technology
is it’s high cost (compared to barcode system)B. Security and privacy: the customers using the
product with RFID tags can be traced easily, there is a very high chance of privacy violation.
C. Technology: as RFID based on the concept of radio frequency, it can be interfered with other radio transmissions, metals, liquids, etc. the degree of interference depends upon the frequency of the tag and the usage environment.
The success factors of e-supply chain:
The ability of all supply chain partners to view partner collaboration as a strategic asset
A well-defined supply chain strategy Information visibility along the entire
supply chain Speed, cost, quality, and customer
service Integrating the supply chain more tightly
Advanced Planning Systems• Computer technology makes supply chain
capable of dealing with demand uncertainty– Forecasting– Inventory reduction– Optimized transportation costs
• Advanced planning systems use operational data to analyze material flows in supply chain– Use historical demand for forecasts– Easy to collect data– Dynamic nature makes long-range
forecasting difficult
Advantages of applying Advantages of applying technology on SCMtechnology on SCM
• Cost savings and price reductions• Reduction or elimination of the role
of intermediaries• Shortening supply chain response
and transaction times• Gaining a wider presence and
increased visibility for companies• Greater choices and more
information for customers
Advantages of applying Advantages of applying technology on SCM technology on SCM Cont Cont..• Improved service as a result of instant
accessibility to services• Collection and analysis of enormous
amounts of customer data and preferences
• Creation of virtual companies• Leveling playing field for small companies• Gaining global access to markets,
suppliers, and distribution channels
Thanks a lot for all of you, we Thanks a lot for all of you, we hope it was beneficial and hope it was beneficial and interesting presentationinteresting presentationBest regardsBest regards
Inas SrourInas Srour
Arwa El MasriArwa El Masri
Zeiad RamadanZeiad Ramadan