2. Recent Issues in SCM:
Role of computer/ IT in supply chain management
The role that IT plays in supply chain management or SCM is so
important. IT provides the tools which can pick up relevant
information, break it down for proper analysis and execute it for
optimum performance of the supply chain. Data is pivotal to the
execution of the supply chain, primarily because it provides the
base on which the supply chain managers can make decisions.
3. The Role of IT in Supply Chain Management
Integrated and Coordinated Supply Chain
Increased Productivity
Cost Reduction
Product Improvement
Supply Chain Visibility
4. The Role of IT in Supply Chain Management
Integrated and Coordinated Supply Chain
Increased Productivity
Cost Reduction
Product Improvement
Supply Chain Visibility
5. The Functional Roles of IT in Supply Chain Management
Transaction Execution
Collaboration and Coordination
Decision Support
6. Benchmarking
Benchmarking is defined as the process of measuring products,
services, and processes against those of organizations known to be
leaders in one or more aspects of their operations. Benchmarking
provides necessary insights to help you understand how your
organization compares with similar organizations, even if they are
in a different business or have a different group of customers.
Definition: Benchmarking is a systematic process of comparing an
organization's performance metrics, processes, and practices
against those of industry leaders or best-in-class organizations to
identify performance gaps and opportunities for improvement.
7. Key Concepts of benchmarking
1.Comparison:Benchmarking involves comparing an
organization's performance against external benchmarks, which
could be industry standards or the practices of leading competitors
or other industries.
2. Continuous Improvement: The primary goal of benchmarking
is to drive continuous improvement by adopting best practices,
enhancing processes, and achieving higher levels of performance.
3. Adaptation: It's not about copying another organization's
practices verbatim but rather adapting and incorporating the most
effective strategies and processes to fit one's own contex
9. Implementation of Benchmarking
1. Define Objectives
2. Identify Scope
3. Select Benchmarking Partners
4. Data Collection
5. Analysis
6. Set Targets
7. Action Plan
8. Implementation
9. Evaluate and Adjust
10. Document and Communicate
11. Repeat
10. Vendor Managed Inventory
Vendor Managed Inventory (VMI) is a supply chain
management strategy where the supplier (vendor) is
responsible for monitoring and managing the inventory
levels of products at the customer's (buyer's) location. In
this arrangement, the vendor takes an active role in
ensuring that the right quantity of products is available at
the right time, helping to optimize inventory levels and
improve overall supply chain efficiency.
11. Key Components of Vendor Managed
Inventory
1. Inventory Ownership
2. Data Sharing
3. Automated Ordering System
4. Performance Metrics
5. Continuous Replenishment
6. Consignment Inventory
7. Collaboration and Partnership
12. Benefits of Vendor Managed Inventory
1. Reduced Stock outs and Overstocks
2. Improved Efficiency
3. Lower Holding Costs
4. Enhanced Visibility
5. Strategic Focus
6. Promotion of Collaboration
13. Challenges of Vendor Managed Inventory
1. Data Accuracy and Trust
2. Integration of Systems
3. Resistance to Change
4. Complexity in Implementation
5. Dependency on Vendor Performance
14. CPFRP
Collaborative Planning, Forecasting, and Replenishment (CPFR)
is a business practice that combines the efforts of trading partners
in the supply chain to enhance overall efficiency. It involves joint
planning and coordination of activities between suppliers and
their customers to optimize inventory levels, reduce stock outs,
and improve the overall flow of goods.
CPFR was originally presented by VICS in their VICS CPFR
Guidelines in 1998 as a nine-step (or data flow) process, starting
with the collaborating businesses developing the agreement for
collaboration.
15. CPFRP
The nine steps were
1. Develop Front End Agreement
2. Create the Joint Business Plan
3. Create the Sales Forecast
4. Identify Exceptions for Sales Forecast
5. Resolve/Collaborate on Exception Items
6. Create Order Forecast
7. Identify Exceptions for Order Forecast
8. Resolve/Collaborate on Exception Items
9. Order Generation
16. Customer Service Logistics and Environment
1. Sustainable Logistics Practices
a) Green Transportation
b) Optimized Routing and Consolidation
c) Last-Mile Delivery Solutions
d) Packaging Optimization
2. Supply Chain Transparency
a) Environmental Impact Disclosure
b) Product Lifecycle Awareness
3. Customer Service and Communication
a) Responsive Customer Service
b) Communication of Sustainable Efforts
c) Feedback Mechanism
17. Customer Service Logistics and Environment
4. Technology Integration
a) Data Analytics for Sustainability
b) Digital Platforms for Communication
5. Regulatory Compliance
a) Adherence to Environmental Regulations
b) Environmental Certifications
18. International Logistics
In business, international logistics is the study, planning and
implementation of how a business moves physical goods and
materials from supplier to customer in a way that involves
crossing at least one international border. It also includes the
international movement of money and information.
19. Methods & Tools Facilitating International
Logistics
1.Transportation Management Systems (TMS)
2.Warehouse Management Systems (WMS)
3.Freight Forwarding & Customs Brokerage Services
4.Incoterms (International Commercial Terms)
5.Global Trade Management (GTM) Tools
6.Multimodal and Intermodal Transportation
7.Real-Time Tracking & IoT Devices
8.Enterprise Resource Planning (ERP) Systems
9.Trade Compliance & EDI (Electronic Data Interchange)
20. Challenges of International Logistics
1.Customs and Regulatory Compliance
2. Documentation and Paperwork
3. Varied Transportation Modes
4. Distance and Time Zones
5. Supply Chain Disruptions
6. Currency and Payment Issues
7. Cultural and Language Barriers
8. Infrastructure Variances
9. Security Concerns
10. Environmental Regulations
21. Integrated Supply Chain and Logistics
1. End-to-End Visibility
2. Information Technology Integration
3. Collaboration and Communication
4. Inventory Management
5. Demand Forecasting and Planning
6. Sustainable Practices
7. Risk Management
8. Supplier Relationship Management
9. Technology for Automation
