1. LOGISTICS AND SCM INFORMATION SYSTEM, SCM SOFTWARE SARATH M V MBA (PT), 6 TH SEMESTER ROLL NO : 15

2. Introduction The shift in the economy from the industrial era to the information age has profound implications for the management of the modern enterprise Issues of ASEAN Connectivity in physical, people, and institutional connections. Supply Chain Management is a relatively new discipline within the firm and originally dealt with the transportation and storage of goods, an advanced supply chain program coordinates activities across management functions. The shift in the economy from the industrial era to the information age has profound implications for the management of the modern enterprise Issues of ASEAN Connectivity in physical, people, and institutional connections. Supply Chain Management is a relatively new discipline within the firm and originally dealt with the transportation and storage of goods, an advanced supply chain program coordinates activities across management functions.

3. Contd.. In addition to transportation and distribution, other areas influenced by logistics include customer service and quality management, inventory management, location, strategic planning, procurement, and logistics information systems. In addition, a special attention is given to how information technologies will transform the business landscape on logistics and supply chains. In addition to transportation and distribution, other areas influenced by logistics include customer service and quality management, inventory management, location, strategic planning, procurement, and logistics information systems. In addition, a special attention is given to how information technologies will transform the business landscape on logistics and supply chains.

5. Questions What if Logistics united with Information Systems? –A theoretical framework is developed to specify the relationships between L and IS for logistics innovation. What are the challenges posed by Logistics Information Systems? –LSI as a subject and a logistics education What if Logistics united with Information Systems? –A theoretical framework is developed to specify the relationships between L and IS for logistics innovation. What are the challenges posed by Logistics Information Systems? –LSI as a subject and a logistics education

6. LOGISTICS AS A DISCIPLINE Logistics is the field of study to focus on the design, control, and implementation of the efficient flow and storage of goods and services and other related information from the point of origin to the point of final consumption with an aim to satisfy the requirements of its existing and prospective customers. The management of Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and often security. Logistics is the field of study to focus on the design, control, and implementation of the efficient flow and storage of goods and services and other related information from the point of origin to the point of final consumption with an aim to satisfy the requirements of its existing and prospective customers. The management of Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and often security.

7. A Supply Chain = A Network of Logistics

8. TYPES OF FLOW – SUPPLY CHAIN

9. Logistics Management Understand the role of logistics in an enterprise. Define customer service. Describe electronic and other logistics information systems. Explain inventory management. Explain materials management with special reference to Japanese systems. Define supply chain management Explain the methods of transport.

10. CONTD.. Illustrate the calculation of transport cost. Illustrate the types and costs of warehousing. Explain electronic aids in materials handling cost and price determination of purchases. Explain how logistics can be organized. Explain methods for improving logistics performance Illustrate the calculation of transport cost. Illustrate the types and costs of warehousing. Explain electronic aids in materials handling cost and price determination of purchases. Explain how logistics can be organized. Explain methods for improving logistics performance

11. Integrated Logistics

12. Example of Integrated Logistics

13. Information Systems Discipline Information Systems is an applied discipline that studies the processes of the creation, operation, and social contexts and consequences of systems that manipulate information. The creation and operation of such systems requires the sub-processes of systems analysis, design, development and management which are bracketed at the beginning by social context and at completion by social consequences.

14. Logistics and Information System Logistics Information System Unified Logistics and Information System

15. Logistics Information Systems Logistics is the field of study to focus on the design and implementation of the efficient flow and storage of goods from the point of origin to consumption. Information System is the field of study to deal with problems against the design, development, implementation, application of information system. Logistics Information Systems (LIS) is a new discipline that unifies Logistics and Information Systems.

16. Key Building Blocks of LIS Logistics Information Portal: Transactional and Analytical LIS Logistics Computing and Simulation Decision Support System Database and Data Mining E-Logistics and E-Commerce Logistics Process Management IT and Software: CRM, ERP, CRM, ERP, RFID, TMS, and WMS. LIS Applications: port, retail, energy, humanitarian, agriculture, military, trade, manufacturing

17. Analytical and Transactional LIS

18. SAP Logistics Information System

19. Manifestation of LIS LIS is designed to provide professionals working within the logistics and operations management area with the skills to manage the flow of materials and information within and between organizations and their business environment. It incorporates both practical and theoretical aspects of logistics information systems to assist managers in increasing business efficiency.

20. SUPPLY CHAIN MANAGEMENT AND INFORMATION SYSTEMS

21. EVOLUTION OF SCM Stage 1: Vendor – Purchase – Production - Distribution – Retailer Stage 2: Materials Management - Logistics Management Stage 3: Supply Chain Management Stage 1: Vendor – Purchase – Production - Distribution – Retailer Stage 2: Materials Management - Logistics Management Stage 3: Supply Chain Management

22. Flow of Information Item’s UPC (Universal Product Code – Bar Code) scanned at check-out.. Creating POS (Point of Sales) data, which goes POS data base available to category buyer.. With integrated supply chain management;. POS data goes directly to regional DC (distribution center) and to product vendor via EDI (Electronic Data Interchange); no paper orders, shipping statements, billing.

23. CONTD.. A replenishment order is generated automatically, when given amount of product is sold at a store. Vendor (product supplier) will also know when to send a shipment to the DC. Retailer & supplier acting as partners. Retailer also stores data on each sale & customer to use to improve merchandising.

24. CONTD… In other systems purchase data is aggregated by category buyer, who sends order to supplier. Category buyers & store managers coordinate to get deliveries from DC (distribution center) when needed. Wal-Mart has been a leader in using IT to improve supply chain management. Next step is RFID (radio frequency identification); bar codes that can be scanned from a distance. Just walk through scanner on way out of grocery store. Going slow!

25. Advantages of Advanced Supply Chain Management Improved Product Availability; fewer stock-outs; huge increase in number of SKUs (stock keeping units). Improved Return on Investment: - Return on Assets = Net Profits/ Total Assets. - Greater supply chain efficiency reduces costs; hence net profits. - Greater supply chain efficiency reduces inventories; hence assets. Data Warehousing – data stored from inside & outside the company ready for analyis.

26. EDI Proprietary systems; Wal-Mart. Intranets: secure systems within a company. Extranets: use the internet, although usually private & secure. CPFR (collaboration, planning, forecasting, & replenishment); popular in grocery industry. Inventory management system using EDI with retailer sharing sales data with supplier to coordinate sales forecasting & replenishment.

27. Security Has become a major challenge. Authentication: assure & verify the party’s id. Authorization: assure party has authority to access info. Integrity: data protected from unauthorized changes/tampering

28. SUPPLY CHAIN MANAGEMENT SOFTWARE (SCMS) Supply chain management software (SCMS) is a business term which refers to a whole range of software tools or modules used in executing supply chain transactions, managing supplier relationships and controlling associated business processes.

29. SCMS While functionality in such systems can often be broad – it commonly includes Customer requirement processing Purchase order processing Inventory management Goods receipt and Warehouse management Supplier Management/Sourcing

30. CONTD.. A requirement of many SCMS often includes forecasting. Such tools often attempt to balance the disparity between supply and demand by improving business processes and using algorithms and consumption analysis to better plan future needs. SCMS also often includes integration technology that allows organizations to trade electronically with supply chain partners

31. Types of SCM Software There are two main types of SCM software: 1) planning applications and 2) execution applications. Planning applications use advanced algorithms to determine the best way to fill an order. Execution applications track the physical status of goods, the management of materials, and financial information involving all parties.

32. CONTD.. Some SCM applications are based on open data models that support the sharing of data both inside and outside the enterprise (this is called the extended enterprise, and includes key suppliers, manufacturers, and end customers of a specific company). This shared data may reside in diverse database systems, or data warehouses, at several different sites and companies.

33. CONTD.. By sharing this data “upstream” (with a company’s suppliers) and “downstream” (with a company’s clients), SCM applications have the potential to improve the time-to-market of products, reduce costs, and allow all parties in the supply chain to better manage current resources and plan for future needs. Increasing numbers of companies are turning to Web sites and Web-based applications as part of the SCM solution. A number of major Web sites offer e- procurement marketplaces where manufacturers can trade and even make auction bids with suppliers.

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