Role of It in A Supply Chain (Repaired)

ASSIGNMENT NO 2
Submitted to:
DR.WARDAH GHAFOOR
Submitted by:
Group 1
Husnain Muavia 07
Nimra Mazhar 20
Raja Danial Ahmad 14
Sundas Parveen 23
 ROLE OF IT IN A
SUPPLY CHAIN
ROLE OF IT IN A SUPPLY CHAIN
IT consists of the hardware, software, and people throughout a supply chain that gather,
analyze, and execute upon information. IT serves as the eyes and ears (and sometimes a portion of the brain) of
management in a supply chain, capturing and analyzing the information necessary to make a good decision. Here are
some specific ways in which IT can play a role in a supply chain:
Characterestics of IT for a suppy chain:
 Information must be accurate

 Information must be accessible in a timely manner
 Information must be of the right kind
 Information must be shared
Supply chain IT Frame work:
SCM framework incorporates all supply chain planning and execution processes from
demand management to customer delivery. A holistic view begins by matching supply with demand to
create a feasible plan defining the operating levels and resources needed to meet customer
requirements.
There are basic five dimention frame work for supply chain
management:
1. Plan (including strategy),
2. Source/supply (order)
3. Produce (make/assemble)
4. Delivery (to customer)
5. Returnability.
RISK MANAGEMENT IN IT:

IT risk management is the application of risk
management methods to manage IT threats. IT risk management
involves procedures, policies, and tools to identify and assess
potential threats and vulnerabilities in IT infrastructure.
The major areas of risk in IT can be divided into two broad categories.
 The first, and potentially the greater, is the risk involved with installing new IT systems.
 During the transition of new process,firms face troubles in business process and technical issues.
 For running business process firm require new emplyess or new skills to work
 As transition to new system leads firm to unabale to perform their functions and fulfil pomises of the
firm.
 The second category of risk is that the more a firm relies on IT to make decisions and
execute processes, the higher is the risk that any sort of IT problem, ranging from software
glitches to power outages to viruses, can completely shut down a firm’s operations.These are serious
risks that a firm must plan to face.
 Each of the major risk categories has its own mitigation strategies. With regard to implementing IT systems,
keep three ideas in mind
The first is to install new IT systems in an incremental fashion rather than changing all processes at the same
time.
o This allows a firm to limit the damage should things go wrong and to pinpoint problem areas during the
installation process
o Second, firms can run duplicate systems to make sure the new system is performing well. By this, we
mean that the firm can keep its old system running at the same time the new one is running. If the new
system runs into trouble or if the results seem too far off from the old one, the old system can be used, as
it still exists.
o Third,On the operational side, mitigation strategies include data backup systems, systems running in
parallel in case one should suffer a problem, and a range of security software products that can help keep
a company’s systems safe.
SUPPLY CHAIN IT IN PRACTICES;

Supply chain management spans multiple business units, external vendors and internal
supply chain team stakeholders. Effective supply chain management requires the right people, making the right
decisions based on the right data and framework. There are also four attributes of a supply chain to keep in
mind:
 Integration
 Operations
 Purchasing
 Distribution
There are many different ways companies can improve their supply chain management to increase
operational efficiency, reduce costs and provide a better customer experience. There are some supply chain
management practices that businesses to start realizing the its benefits are given below.
Supply Chain Planning:

IT tools can help companies with supply chain planning by providing real-time data, analytics, and
predictive modeling to identify demand patterns and optimize inventory levels. Supply chain planning
tools can also help optimize transportation and logistics routes, reducing lead times and increasing
efficiency.
Inventory Management:
IT tools can help companies manage their inventory levels by providing real-time visibility into stock levels, lead
times, and reorder points. This can help ensure that inventory levels are optimized, reducing stockouts and
minimizing inventory carrying costs.
Logistics and Transportation Management:

IT tools can help companies manage their transportation and logistics operations by providing real-time
tracking and visibility into shipment status, reducing delays, and improving on-time delivery. IT tools can also
help optimize route planning, reducing transportation costs and improving efficiency.
Supplier Management:
IT tools can help companies manage their suppliers by providing visibility into supplier performance,
compliance, and risk management. IT tools can also help automate supplier communication and collaboration,
improving efficiency and reducing errors..
Customer Relationship Management (CRM):
IT tools can help companies manage their customer relationships by providing real-time insights into customer
behavior, preferences, and satisfaction. CRM tools can also help automate customer communication and
improve customer service, leading to increased customer loyalty and retention.
Track Supply Chain Metrics:

Supply chain managers need to establish specific parameters by which they can quantify supply chain
performance. These key performance indicators (KPIs) allow businesses to identify and analyze strengths and
inefficiencies to enable data-supported goals. Among the most critical metrics are:
Perfect Order Rate:
This measures a supply chain's ability to deliver error-free orders. That means orders that arrive on time, in full,
containing the correct items.
Warehousing Costs:
This metric is critical for establishing a financially efficient supply chain. It encompasses all of the costs related
to warehouse operations, including labor, rent and utilities, equipment, shelving and pallet racks and
technology. Supply chain managers should review this KPI regularly and make adjustments as necessary ;
Inventory Velocity:
This looks at the amount of inventory projected to sell within a given time frame, often a quarter or year. It is
calculated by dividing the inventory count at the beginning of the period by the sales forecast.
Supply Chain Cycle Time: This metric calculates the overall efficiency of the supply chain. Shorter cycles
are more efficient, leading to competitive advantages. Longer cycles can indicate bottlenecks or other pain
points that need to be addressed.
Overall, IT plays a critical role in a supply chain by providing real-time data, analytics, and visibility that can help
optimize operations, reduce costs, and improve customer satisfaction.
FUTURE OF IT IN A SUPPLY CHAIN:

The future of IT in a supply chain is likely to be shaped by advances in technologies such as artificial
intelligence (AI), blockchain, the Internet of Things (IoT), and robotics. Here are some potential trends in the
future of IT in a supply chain:
AI and Machine Learning:

AI and machine learning will become increasingly prevalent in supply chain operations, enabling companies to
optimize their supply chain planning, inventory management, and logistics operations. For example, AI can be
used to predict demand patterns, optimize inventory levels, and improve transportation routing.
Blockchain:
Blockchain technology will become more widely adopted in supply chains, allowing for improved transparency
and traceability. Blockchain can help reduce the risk of fraud, counterfeiting, and theft, as well as improve
efficiency by automating documentation and record-keeping.
IoT and Sensors: The use of IoT sensors and devices will increase in supply chain operations,
companies to monitor inventory levels, track shipments, and improve asset utilization. For example, IoT sensors
can be used to monitor the temperature and humidity of perishable goods during transit.
Robotics and Automation:

The use of robotics and automation will become more common in supply chain operations, enabling
companies to improve efficiency and reduce labor costs. For example, robots can be used for material
handling, picking, and packing.
Cloud Computing:
Cloud computing will continue to play an important role in supply chain operations, enabling companies to
access real-time data and analytics from anywhere. Cloud computing can also improve collaboration and
communication between supply chain partners.
Overall, the future of IT in a supply chain is likely to be characterized by increased automation, improved
efficiency, and greater transparency and traceability. Companies that invest in IT and adopt new technologies
will be better positioned to compete in an increasingly complex and dynamic global supply chain environment.

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ASSIGNMENT NO 2

Characterestics of IT for a suppy chain:

 Information must be accurate

Supply chain IT Frame work:

RISK MANAGEMENT IN IT:

SUPPLY CHAIN IT IN PRACTICES;

Supply Chain Planning:

Logistics and Transportation Management:

Track Supply Chain Metrics:

FUTURE OF IT IN A SUPPLY CHAIN:

AI and Machine Learning:

Robotics and Automation:

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