The Influential Role Of Information Technology In SCM Prepared By : Inas M. Srour Arwa El Masri Arwa El Masri Zeiad Ramadan Zeiad Ramadan Supervised By: Ms. Rasha Atallah

Outline 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

Outline 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

Introduction 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.

Introduction 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 chain The flow of materials, information, money, and services from raw material suppliers through factories and warehouses to the end customers

Supply 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 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 improve the operations of supply chain activities as well as the management of supply chains

E-Supply Chain Transactions 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-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 Supply 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 Internet allows companies to communicate with suppliers, customers, shippers and other businesses around the world, instantaneously

Key Enabling Supply Chain Technologies: RFID  One 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 Chain Technologies: RFID 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 Technology A.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 technology 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 technology on SCM 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 hope it was beneficial and interesting presentation Best regards Inas Srour Inas Srour Arwa El Masri Arwa El Masri Zeiad Ramadan Zeiad Ramadan