Supply Chain Diagram (Nithin)

Information Technology: Changing the Face of Supply Chain Management

Agenda
Information Technology in Supply Chain
Illustration of laptop market IT use and drivers

Supply Chain IT trends

ERP & Cloud Robotics & 3D Printing

Case Study
Tesco Wal-Mart Toyota

Information Technology Role in the Supply Chain

IT helps monitor, control and enhance the experience of the supply chain by addressing the various factors driving SCM

Supply Chain of Laptop market

On time supply, replenishment of raw materials Tracking of items from raw materials to finished goods Manage speed, cost and carbon foot print during shipment Handling steps, inventory, forecasting and planning Processing of orders for B2B and B2C After sales services based on value of goods and SLAs

Information Technology use and drivers

Reduction of costs Transaction Processing Volume of transactions Speeding up information transfer Elimination of human errors Supply chain planning and collaboration

Unpredictable and logistically demanding environment

Order tracking and delivery coordination

Project-orientation of the business In-transit delivery consolidation

Supply Chain IT Trends Supply Chain

Diagram (Nithin)

Barcodes continue to be widely used RFID is being used in isolated segments Advent of 3G mobile internet and Smartphones have resulted in tremendous use of QR Codes Processing time has been greatly reduced by the use of the above technology

Supply Chain IT Trends ERP & Cloud Supply ChainDiagram (Nithin)

Despite the numerous ERP implementation failures, Proper implementation of ERP can facilitate creation of competitive advantage . Today ,CRM and Business Analytics & Intelligence tools are being utilized to take customer experience to new levels GPS Tracking systems as well as integration with vendors & customer systems can facilitate an agile supply chain

From a supply chain perspective especially for Logistics service providers ability to optimize routes, provide solutions and utilize ERP systems can elevate them to the 4PL and LLP leagues Cloud Computing can facilitate seamless integration with various stakeholders. Further more Capex can be converted to Opex

Supply Chain IT Trends Robotics & 3D Printing Supply ChainDiagram (Nithin)

3D printing is emerging as a potential disruptive innovation. 3D printing takes virtual designs from (CAD) transforms them into thin, virtual, horizontal cross-sections and then creates successive layers until the model is complete Robots as shown on the right have found their way to warehouses. Robots are integrated with the ERP, lead times reduced and processing accuracy inc.

Tesco IT SupplyChain Chain Video Supply Diagram

(Nithin)

Wal-Mart Invests Chain Heavily Diagram in Information Technology Supply (Nithin)

Vendor-managed QR
Inventory Tracking and Management System at distribution centers:
Identifies every product and its location in the warehouse Integrated with some 8.5 miles of laser-guided conveyor belts Lasers read the bar code on every product box and route them to appropriate loading dock

Supplier

POS Data

Store

Warehouse Just-in-Time System

Distribution Center
Wal-Mart

Electronic Data Interchange (EDI):

For electronic transmission of POS data, purchase orders, invoices, advance shipment notice, etc. between Wal-Mart headquarters, suppliers, distribution centers, and individual stores

POS Data Supplier Store

Merchandising Artificial Intelligence System:

Wal-Mart-managed QR
Distribution Center
Wal-Mart

To adjust vendor merchandise assortments based on the need of each particular store State-of-the-art satellite communication network which supports data, voice, and video

Order

Supplier

Store

Various Quick-Response (QR) systems (retail-link) to allow direct store-tosupplier ordering: continuous replenishment

Wal-Marts success by tech & better use of people Supply Chain Diagram (Nithin)

Strong Supplier Relationships

Economies of Sales: Best Deals

Effective IT Systems Reduced Cost of Sale Effective Distribution Systems In-Depth Knowledge of Customer/ Market

Stable Lower Prices

Predictable Sale Patterns

Decreased Chance of Out-of-Stock Increased Sales and Profits

Empowered Employees

Information Technology Toyotas story Supply Chain in Diagram (Nithin)

5S
Sorting and arranging items as per consumption pattern Standardizing items through information system updates

7 Wastes
MPS is used at SKU level for optimizing inventory and curbing overproduction Route optimization software like Runzheimer Using techniques like value stream mapping through latest software for production control

JIT
SMED software ensuring rapid changeovers

Autonomation
Intelligent automation preventing defective products, detects abnormality and investigate the Root Cause of defect.

Load Leveling
Scheduler software resolves the capacity infeasibilities during RCCP

Total Productive maintenance

FMEA software for preventive maintenance and ensuring safety and environment friendliness.

Thank you

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