Supply Chain Integration

Information Flow
 SUPPLY CHAIN INTEGRATION

 Supply chain integration is nothing but integration of

various activities related to logistics system of the firm
and its further integration with logistics systems of
business partners like vendors, customers and 3PL
service providers.

 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.
Information Integration thru IT
INFRASTRUCTURE to enable SCI
 ELECTRONIC DATA
INTERCHANGE (EDI)
 EDI is an inter-organization computer-to-computer
exchange of standard business documents in a
structured and machine-processable format without
human intervention to improve the speed and
accuracy of the information flow.
COMPARISON OF PAPER AND EDI FLOWS
 COMPONENTS OF EDI

EDI Standard EDI Software Communication Medium

LIMITATIONS OF EDI

There are two major limitations of EDI that restricts its

scope of use, which are:
 It needs highly sophisticated and private IT
infrastructure resulting into huge costs; and
 As EDI is an inter-organization, computer-to-computer
exchange of standard business documents in a
structured and machine-processable format, hence,
day-to-day flexible data cannot be shared between
supply chain partners. Supply chain integration needs
more flexible information sharing on continuous basis
apart from standard business documents.
BAR CODE SYSTEM (BCS)
 The bar code system is an identification technology
wherein there is placement of computer-readable codes
on items, cartons and containers in the form of
grouping of parallel bars (usually blocks) of different
widths separated by light spaces (usually white), 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 .
CHARACTERISTICS OF A
TYPICAL BAR CODE
ENTERPRISE RESOURCE PLANNING (ERP)
 ERP is a computerized integrated set of application
software modules for
 different business processes such as
production, distribution, financial, human resources,
procurement, supply china management, etc.,
 used by firms providing
 operational, managerial and strategic information
for making decisions strategically to improve the productivity,
quality and competitive advantage.
ERP SYSTEM COMPONENTS
 CRITICAL ERP IMPLEMENTATION
ISSUES

 Never-ending implementation
 Importance of process mapping
 Process redesign
 Use of consultants
 Excessive cost
 Resistance to change
 Errors during implementation
 Rapid technological change
 INTRANET, EXTRANET AND INTERNET
APPLICATIONS IN SUPPLY CHAIN INTEGRATION
 EMERGING TECHNOLOGIES IN
SUPPLY CHAIN INTEGRATION
 Voice Systems
 It allows people to exchange data with other s through a
computer without the need for key pad entry.
 It is generally through voice/speech technology.

 Memory in a Button
 They contain multiple microprocessors
 Several pages of information can be stored in it.

 Radio Frequency Technology (RFID)

 It is a data collection techniques that passes product
information via radio waves to a receiving unit.
WEB-BASED SUPPLY CHAIN
 A Web-based supply chain is dynamic, high
performance network of customer and vendor
partnerships and information flow creating new and
unique value proposition mainly due to addition of
digital value.
 Value Prepositions through Web based supply
chain:
 Super Service
 Convenient Solution
 Customization
WEB-BASED SUPPLY CHAIN INTEGRATION
Consumer

Advanced Distribution
Planning Channels
and
Scheduling
Carriers & 3PL Collaborative
Web-Based Planning Distribution
Supply chain Forecasting &
Replenishment Warehouse
Vendors
Agile Order
Manufacturing Management
WEB BASED SUPPLY CHAIN & ORDER MANAGEMENT
SYSTEM

 Flexible Business Process Management

 Unified Data Model

 Robust Integration Framework

 Self-service Tools
ORDER MANAGEMENT APPLICATION
 COLLABORATIVE PLANNING, FORECASTING AND
REPLENISHMENT (CPFR) SYSTEM

 Collaborative planning, forecasting, and replenishment is

a multi-industry that uses the Internet to achieve
cooperation across the members of a supply chain to
better sense demand, plan, and execute the flow of
goods.
CPFR PROCESS MODEL
 Develop a front-end agreement
 Create a joint business plan
 Create a sales forecast
 Identify exceptions for the sales forecast
 Resolve/collaborate on exception items
 Create all order forecast
 Identify exceptions for the order forecast
 Resolve/collaborate on exception items
 Generate the order
AGILE MANUFACTURING SYSTEM
 Agile manufacturing system is an IT enabled
process of web-based supply chain integration
facilitating firms to support the demand and mass
customization requirements.
 Its applications support complex flow
manufacturing, the just-in-time-based, pulls
production method that enables manufacturing in
lot sizes of one.
 AGILE MANUFACTURING SYSTEM
Benefits in web-based supply chain through agile
manufacturing application:
 Greater product customization
 Rapid introduction of new or modified products
 Interactive customer relationships
 Dynamic reconfiguration production processes
 ADVANCED PLANNING AND SCHEDULING (APS)
SYSTEM
 Advanced planning and scheduling system is high
analytical applications software that uses
mathematical models and related techniques to find
out optimal solutions to complex production and
supply problems.
 Advantages of APS system:
 More flexible system handling more varied supply chain
requirements.
 Mathematical models based supply and support
optimization.
 Optimization of supply chain structures.
 Optimization is based in strategic issues of supply chain
such as, costs, customer value and services, and
profitability
BENEFITS OF WEB-BASED SUPPLY CHAIN
 Delivers cost saving through supply chain
integration
 Reduce inventory across supply chain
network
 Reduce procurement costs and improve vendor
management
 Improve customer value and services
 Increasing revenues and profitability
CHALLENGES TO WEB-BASED SUPPLY CHAIN
 Security issues

 Changes to business process

 Coping with weaker supply chain links

 Sharing of costs and benefits

 Other issues to address

1. How your SC handle

• Information distortion across the supply chain
• Order management
• E-Bidding
• E-Procurement
• Inventory accuracy
• P.O.S
• RFID
• Bar-Cord
• Tracking system
• Order
• Delivery
• Inventory