Overview of Information Technology tools for
Supply Chain Management
Prashant R.Nair, Vice-Chairman – Information Technology, Amrita University, Coimbatore, India;
Venkitaswamy Raju, Director – Science and Engineering Programs, State University of New York at
Farmingdale, USA and Anbudayashankar S P, Assistant Professor – Mechanical Engineering, Amrita University
ABSTRACT
Information Technology (IT) and its use in organizations
and across the supply chain has become a determinant of
competitive advantage for many corporations. This paper
focuses the usage of IT tools for Supply Chain
Management (SCM). It also highlights the contribution of
IT in helping to restructure the entire distribution set up to
achieve higher service levels and lower inventory and
lower supply chain costs.
An overview and tangible benefits of the existing IT tools
that are widely deployed is also provided with focus on
existing configurations considerations, available
applications. The role of existing communication
technologies in making IT an enabler of SCM is
highlighted by addressing a range of different point and
enterprise solutions in a variety of supply chain settings.
Critical IT demonstrations and implementations in SCM
are discussed. Fundamental changes have occurred in
today's economy. These changes alter the relationship we
have with our customers, our suppliers, our business
partners and our colleagues. Reflection on the evolving and
emerging Information Technology trends like Software
Agents, RFID, Web Services, Virtual Supply Chains,
Electronic Commerce and Decision Support Systems
further highlights the importance of IT in the context of
increasingly global competition. The rapid adoption of the
Internet for communication with all stake-holders seems to
reflect the potential of the new-age communication media.
KEY WORDS
Agent, Bar coding, Communication Technologies,
Demand, Decision Support Systems, Distribution, EDI, E-
Auction, E-Procurement, E-Supply Chain, E-Tailing,
Electronic Commerce, Electronic point of sale, Enterprise
system, ERP, Extended Enterprise, FIPA, Forecasting,
Information, Information Systems, Information
Technology, India, Integrated Supply Chain, Inventory
Management, IT tools, Logistics, Material Requirements
Planning, Planning, Retail, RFID, RF Tags, Strategy,
Software Agents, Supply Chain Management,
Transportation Management System, Universal
Description, Discovery And Integration, Virtual Supply
Chains, Warehouse Management System, Web Services,
XML
1. INTRODUCTION TO SUPPLY CHAIN
MANAGEMENT
Supply chain management (SCM) is the management of a
network of interconnected businesses involved in the
ultimate provision of product and service packages
required by end customers (Harland, 1996). The term was
coined by Keith Oliver, a Booz Allen Hamilton executive
in 1982.
Supply Chain Management spans all movement and
storage of raw materials, work-in-process inventory, and
finished goods from point-of-origin to point-of-
consumption (supply chain). Supply Chain Management
encompasses the planning and management of all activities
involved in sourcing, procurement, conversion, and
logistics management activities. Importantly, it also
includes coordination and collaboration with channel
partners, which can be suppliers, intermediaries, third-party
service providers, and customers. In essence, Supply Chain
Management integrates supply and demand management
within and across companies. More recently, the loosely
coupled, self-organizing network of businesses that
cooperates to provide product and service offerings has
been called the Extended Enterprise (Ross 2006).
Supply chain management must address the following
problems:
• Distribution Network Configuration: Number,
location and network missions of suppliers,
production facilities, distribution centers,
warehouses, cross-docks and customers.
• Distribution Strategy: Including questions of
operating control (centralized, decentralized or
shared); delivery scheme (e.g., direct shipment,
pool point shipping, Cross docking, Direct Store
Delivery (DSD), closed loop shipping; mode of
transportation (e.g., motor carrier, including
truckload, parcel; railroad; ocean freight;
airfreight); replenishment strategy (e.g., pull, push
or hybrid); and transportation control (e.g., owner-
operated, private carrier, common carrier, contract
carrier, or third party logistics (3PL)).
