Introduction to Supply Chain Management

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Supply chain
Supply chain is the process under which products are created and deliver to customers. it refers to complex network of relationship that organization maintains with its trading partners to source manufacture and deliver products. E-SCM refers in particulars in management of supply chain using internet technologies-SCM facilitate the removal of purchase orders, deliver confirmation bills of material and invoice. The switch over/switch away from paper can also speed up the response and improve communication with those who are there in different time zone or who work outside the normal office hours-such as night shift supervisor. Traditional SCM Cycle Process

THE following processes were not integrated in traditional SCM system. They are 1 procurement planning
2 production planning
3 demand planning
4 inbound logistics
5 customer service
6 distribution channel
The way of SCM i.e; E-SCM changes the old way of SCM and integrate all above processes.

E-SCM PROCESS

Distribution management.
Production management.
Procurement
Plaaning.
p

ESCM
ENABELED
SYSTEM

E-CUSTOMER SERVICE-COLLABORATIVE SYSTEM(“ORDER TRACKING SYSTEM”) E-PROCUREMENT
PLANNING

PRODUCTION PLANNING
ERP(ENTERPRISE RESOURCE PLANNING)

E-SCM permits /allows improvement in procurement and fulfillment particularly in terms of stock availability and on time delivery. Visibility throughout entire SCM must be transparent to achieve full customer satisfaction. Because of E-SCM, customer has complete real time consignment status information over the web.(order tracking system).while suppliers and delivery companies can save time previously devoted to answering queries on order status. This is an essential difference between the old economy logistics and new economy logistics. In e-scm.at the warehouse and distribution level facilities must provide inventory control at individual shipment level as well as item level. Distribution and warehouse centers must have the flexibility to meet diverse requirement of customers .Thus, inventory visibility and information transparency in E-SCM are the keys to success. It also improves the delivery of goods and services at reduce cost through development of method for SCM including advances in data management and by increasing sophisticated planning and execution system. Information technology overcomes the administration problems associated with large number of individuals orders on just in time basis. Real value emerges with the combination of e-logistics system with other information based technology. Processes such as ERP, MIS (MANAGEMENT INFORMATION SYSTEM) AND CIS (CUSTOMER INFORMATION SYSTEM) ARE integrated with company’s MIS .Through its e-logistics software and this data facilitates the analysis of buying selling pattern to serve customers in a better way at lowest cost. So the objective of right product at the right place at the right time and lowest possible cost is accommodated to great extent.

E-SCM ENABLED SYSTEM
How internet, extranet and intranet is applied in e-supply chain.
Intranet-it refers to network within the organization.
Extranet-it refers to network between the organization and the outsiders.
Internet- it refers to network open to general public.

The term e-Procurement is used for referring the procurement processes using internet technology. E-Procurement Helps to reduce the transactional costs, achieving faster & automated transactions, helps the buyer to focus more on Strategic part of procurement. Here extranet is used.

E-Procurement or electronic procurement is an automated, Internet-based way for a company to purchase the goods and services it needs to conduct business. Such procurement goods and services may include product components, standard raw materials, special customized supplies, or MRO...
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