New Trends in Supply Chain Management & Logistics


Presentation Description

This presentation explains about the role and importance of information technology in Supply Chain Management (SCM) and Logistics. It also explains the progression from the manual stage charting out the various stages up to the impact of information technology in Supply Chain and Logistics Management. It explains the types of supply chain related information technology systems in the form of a presentation. This presentation is suited for class-notes, class discussions for MBA, PGDM and BBA courses. This would help in opening up the topics for the students.


Presentation Transcript

New Trends in Supply Chain Management & Logistics:

New Trends in Supply Chain Management & Logistics Presented by: Anupam Kumar Reader School of Management Sciences, Varanasi Email: [email protected]

Supply Chain Management:

Supply Chain Management Supply Chain Management is nothing but the integration of the elements of logistics systems of a firm and its further integration with the logistics systems of business partners like vendors, customers, and 3PL service providers. Integration of logistics function deals with the firm’s internal network of factories, warehouses, production equipments and service centers.

Supply Chain Integration:

Supply Chain Integration In supply chain integration, the firm integrates its own value chain with the value chain of its business partners for systematic exploitation of the shared resources to provide greatest value to end users by way of better communication and to share confidential information resulting into high level of trust and loyalty.

Supply Chain Integration:

Supply Chain Integration Inbound Logistics Operations Outbound Logistics Sales Marketing & Service Inbound Logistics Operations Outbound Logistics Sales Marketing & Service Inbound Logistics Operations Outbound Logistics Sales Marketing & Service Superior Value to End Users Firm Vendor Customer

IT for Supply Chain Integration:

IT for Supply Chain Integration For high level of supply chain integration, It is essential to develop adequate information systems and use information technology that manages Product flow, Information flow, and Cash flow From end to end On real time basis. Corporate invest in various supply chain integration in terms of Electronic Data Interchange (EDC) Bar Code System (BCS) Enterprise Resource Planning (ERP) Intranet Extranet and Internet

Role of IT in SCM & Logistics:

ERP ERP ERP ERP Intranet Role of IT in SCM & Logistics Supplier Procurement Manufacturing Distribution Warehousing Customer End User Consumer EDI EDI EDI EDI Bar Code Extranet Internet

Electronic Data Interchange (EDI):

Electronic Data Interchange (EDI) EDI is an inter-organization computer-to-computer exchange of standard business documents in a structured and machine process-able format without human intervention to improve the speed and accuracy of the information flow.

Electronic Data Interchange:

Electronic Data Interchange The major benefits of EDI are: Improves customer responsiveness Reduces transaction costs and time Increases accuracy and productivity Strengthens supply chain relationships Increases ability to compete globally Improves quality of decision to exploit business opportunities. Limitations: It needs sophisticated and private IT infrastructure which in turn requires huge investments It cannot handle specific and flexible data requirements which may come up from time to time.

Bar Code System (BCS):

Bar Code System (BCS) Bar Code System is an identification technology wherein there is placement of computer readable codes of items, cartons and containers in the form of grouping of parallel bars of different widths separated by light spaces, again of different widths. It facilitates speedier flow of logistical information such as quick tracking receipts, movement details, product identification, etc., with a lesser probability of error.

Bar Code System:

Bar Code System Bar code system technology helps in supply chain integration: Speeds up data entry process Enhances data accuracy Reduces material handling labour Minimizes on-hand inventory Monitors labour efficiency Improves customer service Reduces product recall Verifies orders at receiving and shipping Reduces work-in-progress idle time Monitors and controls shop floor activity Improves shop floor scheduling Optimizes floor space Improves product yield or reduces scrap.

Web Based Supply Chain:

Web Based Supply Chain A Web based supply chain is dynamic, high performance network of customer and vendor relationships and information flow creating new and unique value proposition mainly due to addition of digital value. The web-based supply chain makes seamless flow of goods, information, value as well as cash within the network on real-time basis. It facilitates best & consistent quality, minimum costs, quick response, in time availability of goods and reliability of services.

Intranet, Extranet & Internet:

Intranet, Extranet & Internet Intranet Internal web of a firm which allows internal users to access and share data through electronic messaging. Extranet System which connects vendors, channel partners, 3PL service providers and others to access and share internal corporate information in a restricted manner. Internet Firm’s website which can be accessed from anywhere in the world by anybody.

Web Based Supply Chain: Benefits:

Web Based Supply Chain: Benefits Delivers cost savings through supply chain integration. Reduces inventory across supply chain network Reduce procurement costs and improve vendor management Improve customer value and services Increasing revenue and profitability.

Web Based Supply Chain: Challenges:

Web Based Supply Chain: Challenges Security Issues Changes to business process The difference in business processes of each participating member of the supply chain. Coping with weaker supply chain links Small and weak SC partners may be reluctant due to lack of professional approach, computer illiteracy, additional investment burden, disclosure of secrecy, etc. Sharing costs and benefits.


GPRS GPRS stands for General Packet Radio Services. GPRS is a cellular networking service that supports Wireless Application Protocol (WAP), SMS test messaging and other data communications. GPRS technology was integrated into the 2G cellular network phones designed to provide faster data transfer speeds. It is widely deployed to provide a realistic data capability via cellular telecommunication technology.

Applications of GPRS in Logistics:

Applications of GPRS in Logistics

GPRS Applications in SCM:

GPRS Applications in SCM

Enterprise Resource Planning (ERP):

Enterprise Resource Planning (ERP) ERP is a computerized integrated set of applications software modules for different business processes such as production, distribution, financial, human resources, procurement, supply chain management, etc., used by firms providing operational, managerial, strategic information for making decisions strategically to improve the productivity, quality and competitive advantage.

Benefits of ERP:

Benefits of ERP Improves productivity and enhances a competitive edge by optimizing the use of all the resources. Brings about a trade-off between demand & supply Brings together people who work on shared tasks within the same firm Ensures a smooth flow of inventory & up-to-date information at all levels Reduces replenishment cycle time and thus capital lock-up Ensures high level of customer service with flexibility Overall organizational capability and control is enhanced.

Radio Frequency Identification:

Radio Frequency Identification These are: the wireless non-contact use of radio-frequency electromagnetic fields  to transfer data, for the purposes of automatically identifying and tracking tags attached to objects. 

Radio Frequency Tag (RFT):

Radio Frequency Tag (RFT) These tags contain electronically stored information. Some tags are powered by and read at short ranges via magnetic fields.  Others use a local power source such as a battery, or else collect energy from the interrogating electro magnetic field, and then act as a passive transponder to emit microwaves or UHF radio waves.

Benefits of RFID / RFT:

Benefits of RFID / RFT These provide vendors with proactive information to replenish customers more regularly. Helps to improve customer service in terms of availability and fresher product. They allow for automated receiving of goods. Help firms to receive and deploy merchandize quickly, accurately and inexpensively. It allows more rapid inventory counting. Firms are able to monitor immediate reduction through shrinkages. Helps firms to take stock of full inventory on a daily basis.


Bibliography Books: Agrawal, D.K., (2010) “Supply Chain Management: Strategy, Cases and Best Practices”, New Delhi: Macmillan Publishers. Ballou, R.H. and Srivastava, S.K., (2007) Fifth Edition, New Delhi: Dorling Kindersley (I) Pvt. Ltd. Bhatt, K.S., (2008), “Logistics Management”, Second Edition, New Delhi: Himalaya Publishing House Ismail, R., (2008), “Logistics Management”, New Delhi: Excel Books Kachru, U., (2009), “Exploring the Supply Chain: Theory and Practice”, New Delhi: Excel Books Raghuram, G. and Rangaraj (Eds.), (2000) N., “Logistics and Supply Chain Management: Cases and Concepts”, Chennai: Macmillan Publishers, 2010 reprint. Sople, V.V., (2012), “Supply Chain Management”, New Delhi: Dorling Kindersley (I) Pvt. Ltd. Websites: For Images and Clip arts: 

E-Procurement & E-Commerce:

E-Procurement & E-Commerce

For further details / comments…:

For further details / comments… Contact: - Anupam Kumar School of Management Sciences, Varanasi. Email: [email protected] 25 © Copyright 2013 Anupam Kumar

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