Presentation on Intranets and Supply Chain Management

1. Intranets and Supply Chain
management

2.  Supply Chain:
Network of organizations and business process for procuring material,
transforming raw material into the finished products and distributing the
finished products to the customers.
 Supply Chain Management:
Integration of suppliers, distributors and customers logistics into one cohesive
process.
 Supply Chain Management Process:
Information system that automate the flow information between a firm and its
suppliers in order to optimize the planning, sourcing, manufacturing and
delivering of products and services.

3. • Supply chain management refers to the coordination of activities and involved
in making and moving a product.
• The supply chain is the network of businesses and business processes involved
the creation and selling of a product, from suppliers that procure raw materials
through retail outlets and customers.
• The upstream portion of the supply chain includes the organization's suppliers
and the processes for managing relationships with them.
• The downstream portion consists of the organizations and processes for
distributing and delivering products to the final customers.
• The manufacturer also has internal supply chain processes for transforming the
materials and services furnished by suppliers into finished goods and for
managing materials and inventory.

4. Strategic
Tactical
Executive
Operational
SCM Objectives SCM Outcomes
What?
Establish policies, objectives
and operational footprints.
Objectives.
Supply policies
Network design
How much?
Deploy resources to match
supply with demand.
Demand forecast
Inventory target
When?Where?
Schedule, monitor, control,
and adjust production.
Do:
Build and transport
Work centre scheduling
Order/inventory tracking
Order cycle
Material movement

5. Objectives of SCM
Business value Goals:
Rapid demand fulfilment.
Collaborative supply chain
planning and execution.
Customer value Goals:
Give customer what they want,
when and how they want it, at low
cost.
Enterprise coordination
of manufacturing and
business process.
Effective distribution
system
Responsiveness and
accountability to
customers.

6. This figure illustrates the major entities in Nike’s supply chain and
the flow of information upstream and downstream to coordinate the
activities involved in buying, making, and moving a product.

7. SCM addresses challenges through several areas:
SCM
Supply chain
strategy
Supply chain
planning
Supply chain
enterprise
application
Assets
management
Procurement
Product life
cycle
management
Logistics

8. Supply Chain Management must address the following
problems:
Distribution Network Configuration: Number and location of suppliers, production
facilities, distribution centers, warehouses and customers.
Distribution Strategy: Centralized versus decentralized, direct shipment, cross docking,
pull or push strategies, third party logistics.
Information: Integrate systems and processes through the supply chain to share
valuable information, including demand signals, forecasts, inventory and transportation.
Inventory Management: Quantity and location of inventory including raw materials,
work-in-process and finished goods.

9. FEATURES OF SUPPLY CHAIN MANAGEMENT
In electronic commerce, supply chain management has the following features:
• An ability to source raw material or finished goods from anywhere in the world.
• A centralized, global business and management strategy with flawless local execution.
• On-line, real-time distributed information processing to the desktop, providing total supply
chain information visibility.
• The ability to manage information not only within a company but across industries and
enterprises.
• The seamless integration of all supply chain processes and measurements, including third-
party suppliers, information systems, cost accounting standards, and measurement systems
• The development and implementation of accounting models such as activity based costing
that link cost to performance are used as tools for cost reduction.
• A reconfiguration of the supply chain organization into high-performance teams going from
the shop floor to senior management.

10. • Intranet is used by firms to improve coordination among their
internal supply chain process and they use extranet to coordinate
among business partners and customers.

11. • The objective of supply chain management is to provide a high velocity flow of high quality,
relevant information that will enable suppliers to provide an uninterrupted and precisely timed
flow of materials to customers.
• However, unplanned demand , including those caused by stock outs, in the supply chain
execution process create distortions which can wreck havoc up and down the supply chain.
• There are numerous causes, often in combination that will cause these supply chain distortions
to start what has become known as the “Bullwhip Effect”.The most common general drivers of
these demand distortions are:
• Customers
• Promotions
• Sales
• Manufacturing
• Policies
• Processes
• Systems
• Suppliers

12. Use of Intranet in SCM
Intranet
Suppliers
Logistic
services
Retailers
Customers
Distributor
Planning and
scheduling
Procurement
Production
Inventory
Shipping
Order
Processing

13. Future internet driven supply chain operates like a digital
nervous system.
Distributors
Manufacturers
Suppliers
Virtual
manufacturers
Contract
manufacturers
Logistic
providers
Retailers
Customers
Private
industrial
networks Net
Market place
Logistic
exchange

14. • INTRANET: Network with in organization
• An intranet is a self-contained, internal network linking multiple
users by means of Internet technology.
• In effect, intranets put a fence around the Internet’s limitless
territory, establishing controlled-access sectors within which users
can communicate freely and interact.
• Built and managed by companies or organizations (called
sponsors), these networks reside on theWorldWideWeb, enabling
cross-platform communications among authorized users in real
time.

15. • Speed
• Cost decrease
• Flexibility
• Shortening the supply
chain
ADVANTAGES & DISADVANTAGESOF INTERNET/E-
COMMERCE INTEGRATED SUPPLYCHAIN
Advantages
 Increased interdependence
 The costs of implementation
Disadvantages

16. • Supply chain management (SCM) is the oversight of materials,
information, and finances as they move in a process from supplier
to manufacturer to wholesaler to retailer to consumer.
• Supply chain management refers to the management of material
and information flow in a supply chain to provide the highest
degree of customer satisfaction at the lowest possible cost

17. Factors Responsible for Effective SCM
(i) Inventory perspective,
(ii) Single entity,
(iii) Doing what one can do best,
(iv) Strategic decision-making, and
(v) A systems approach.

18. Types of supply chain management software and SCM
software vendors
• Supply chain management software touches many departments
within a company, as it provides end-to-end visibility and access to
information regarding your SCM software vendors and customers.
Demand
Management
Software
Advanced
Planning & DRP
Software
Finite Scheduling
Software

19. Demand Management Software
• Benefits of Demand Management Software
Organizations who plan and
forecast demand well are better
able to adapt to changes and
quickly react to market
movements.
Successfully executing demand
management enables companies
to have a better view of their
customers while optimizing
inventory and production levels.
• TopVendors

20. Advanced Planning & DRP Software
• Benefits of Advanced Planning & DRP Software
Companies can benefit from
reduced shipping time and
increased customer satisfaction
with the right planning & DRP
software
Certain industries demand product
be available in real-time. If items
are not in the proper location in
terms of demand, customers may
look elsewhere for the product.
Lastly, carrying too much inventory
can be very costly to organizations,
so always having the proper
amount on hand is imperative. All
of these scenarios can be
addressed by advanced planning &
DRP software.
• Vendor Qualities

21. Finite Scheduling Software
• Benefits of Finite Scheduling Software
When executed properly,
scheduling provides many benefits
to an organization.With the added
capability of finite scheduling
software, streamlining inventory
and production processes are
improved
Organizations can quickly adhere
to hot-shot orders from customers
and adjust production if a vendor
does not deliver goods or services
on time.
Most companies implementing
finite scheduling software
applications realize benefits in the
form of supplemental information
for supply chain adjustments and
“what if” scenarios.
• TopVendors