Role Of IT in a supply chain

Mm,

yeah.

Today I'm going to present to the topic role of 80 in the supply chain.

Now we are going to understand the role of information in the supply

chain before understanding the role of

information technology in the supply chain.

In a supply train network, we have different drivers, namely suppliers,

manufacturers, distributors, retailers and consumers.

Each party collects information from other parties to

perform effectively and efficiently in a supply chain.

Manufacturers collect information from the retailers about how many products

should be delivered or the changes required in the products.

New developments market.

Similarly,

suppliers collect information like how many raw materials are required.

The delivery of materials, how the delivery should be made, etcetera.

Retailers collect information from the customers about

the taste and preferences of the customers,

the buying behaviour of the customers,

the buying packed ons changes in this behaviour

etcetera each and every party tries to collect a lot

of information from the other parties or the environment.

Without this information,

there is no supply chain supply chain purely processes or functions

on information gathered does information is very crucial in the supply chain

information forms the basis or provides the foundation

on which the suppression managers take the decisions.

Information serves as a clue that allows the supply

chain drivers to work together and create an integrated,

coordinated supply chain.

Now that we have to understand why the information is so crucial and supply chain

now, we understand the role of a day in the supply chain.

Since we need information, this information should be systematically gathered,

analysed and executed.

Information technology does plays a crucial role in the supply chain.

To gather this information,

to analyse this information and to execute it

to improve the performance of the supply chain.

Information technology consists of the hardware

yes,

software

and people

to gather the information to analyse the information,

to execute the information and later pass

this information to the required parties,

like suppression managers or the supply chain network parties.

Now that we have to understand the role of information in the

supply chain and the role of information technology and supply chain,

now,

we'll understand the characteristics and the users of information in

the supply chain to talk about the characteristics of information.

The information that is gathered must be accurate.

For example, if the manufacturers require information

pertaining to how many raw materials are available with the suppliers

When the delivery of these raw materials will be used,

the curate and the correct data should try to

be communicated to the manufacturers from the supplier.

Similarly,

when the retailers correct information from the

customers like the test the preferences,

they're buying behaviour.

The changes in any of the test of customers are any changes in the environment.

The information that is collected must be accurate.

The second characteristics of information is information

must be accessible in a timely manner

in a supply chain network.

When and uh, as in when the supply chain party requires the information,

the information must be accessible as in when the supply chain

managers require the information pertaining to the products of pertaining today.

Logistics.

The information must be handy and should be accessible in a timely manner.

The information that is obtained by suppression Manager

The suppression parties must be off right.

Information must be shared.

Information plays a crucial role in the South region.

This information must be shared on timely basis on a timely manner

to talk about the information uses.

Information is used when making a wide

variety of decisions about supply chain driver.

No information pertaining to facility is required

to determine the location of the facility To determine the capacity of facility

statutes of a facility requires information on

the trade of among efficiency and flexibility

to determine the demand to determine the

exchange rates to remind the taxes etcetera.

No information pertaining to inventory is required.

Return mind the demand patterns of the inventory.

Now the cost of carrying this inventory from one place to another

place or the cost of stocking out when there's no stock,

how much will it cost?

The supply chain managers of the suppression parties No cost of ordering is how

much will it cost for the supply chain parties while ordering for the inventory?

No information pertaining to transformation

is required for deciding on transportation networks.

Which transportation network should be adopted by a company to be optimised.

This routing networks which are adopted by the company

What are the modes used for the transportation?

You know, what are the shipment methods,

whether it should be shipped through air or it should be shipped by our waters?

Uh, the windows in transportation, which windows are used in the transportation,

the course that will incur by the company for transporting the customer

locations where the customers have the boots have to be transported.

The shipment sizes. How much? Uh, the shipment should be made.

The quantity of the shipment, how many shipment tools should be used, etcetera.

Information pertaining to sort them

is required to determine the product margins of sourcing the prices of sourcing.

How much will it cost for a particular company to source?

Uh, what is the quality of the sourcing?

If it's sourcing from other parties,

what will be the quality is a trustworthy the delivery lead times.

When will the sourcing be accurately beep provided to the company?

Is it trustworthy?

Will it be delivered on time?

Information pertaining to pricing

and revenue management

is acquired

for determining the demand for determining the volume of the

of the output order to determine various customer segments.

Willingness to pay to determine the product margin to

determine the lead time to determine the availability,

etcetera.

Now that we have understood,

the role of idea in a supply chain will better understand

the role of ideas supporting with the help of an example,

I'll present my screen.

Mm,

all right.

US. Based Dell Inc is one of the leading PC manufacturers in the world.

Pioneered a unique model of selling the seeds directly to the consumers,

bypassing the resellers.

The model is popularly known as the direct model.

This case study describes this model in detail

and explains how it enabled DEL to manage its supply chain efficient.

This case also examines Calle Del.

Planned to consolidate its supply chain and manufacturing activities globally

and venture into real

in order to regain its leadership status before moving to this video.

Please do that, I should

describe.

Moreover,

I have given some case study to this video.

Mhm

mm.

In the third quarter of 2000 and six deals,

major competitor HP had overtaken the company in terms of market

share to become the top PC manufacturer in the world.

Mhm

industry experts Opie

at lack of new products, poor customer service, increasing support costs,

lack of retail presence and the limitations of the direct model.

For some of the reasons for Dell's poor performance,

Dell's direct model, which was the company straight,

lost its sheen as the competitors gaining better

supply chain efficiencies and opting for a mixed

sales model.

Also,

due to the growth of innovative technologies and changes in the computer industry,

the customers change their needs as well.

Customisation was no longer crucial for them.

Yeah,

you know,

it makes me really, really so

even with the sort of, uh, even if the booming government

Dale had pioneered a unique direct model of selling DCs,

why passing the conventional model of selling distributed them

to the customers in the direct sales model.

They'll accept orders directly from the

customers without any resellers involved.

Yeah,

using the direct model,

DEL provided consumers with tailor made products

built only after procuring the old order.

In the process,

it was able to reduce inventory costs and

overheads as it didn't need any intermediaries.

Through this model,

Del was able to provide its customers the latest available technologies,

performance and superior value at Competitive Price.

Del supply chain works as followers after a customer places an order

either by phone or through the Internet on www dot dell dot com.

Del processes the order through

financial evaluation and configuration evaluations,

which takes 2 to 3 days,

after which it sends the order to one of its manufacturing plans.

These plants can build, test and package the product in about eight hours.

The general rule for production is first in first out,

and Del typically plans to ship all orders no later than five days.

After receiving

mhm,

the company reinvented its supply chain and shifted to the segmented model

that targeted several groups of customers

with different needs and buying capacity.

The company realised that the core of the brand's success in its earlier

years was its relationships with the customers and ability to hear their needs.

And the reinvention of Dale's supply chain

was focused mostly on customer relationships.

To restructure its supply chain,

the company implemented the following solutions.

One.

They developed global structure instead of regional structure,

with three business units enterprise, public and consumer or small business

to Dell standardised their offers,

including the most frequently purchased configurations.

Three. They submitted their customer model instead of a one size fits all model

before they developed infrastructure that corresponds to

the changing needs of the business.

Five.

They created a standard yet flexible

processes that leverage global partnerships,

since they aligned customer priorities according to speak choice and cost seven

Del had ready made in stock systems for quick delivery. Eight.

Finally, they optimised Global I T infrastructure.

They'll maintain a database to track the purchasing patterns of corporate

customers and their budget cycles in order to forecast demand.

It also maintained a similar database for individual customers in

order to cater to their future requirements for PCs.

Through its forecasting techniques,

Del was able to forecast demand with 75% accuracy

drives a day.

The changing demand patterns were communicated to the major suppliers.

Dell has long term relationships with supplies that helped

the brand streamline their inventory management as well.

The company considers its vendors to be an integral part of its success

the key objective of Dell's inventory management as to

minimise the inventory and optimise the production speak.

As a result,

the company does not hold inventory for more

than six days and avoid unnecessary carrying costs.

The retail giant has got suppliers from all over the world,

including major companies such as Motorola, Samsung, Sony and more.

All of them supply the components. According to a set of rules provided by Del,

for example,

it is strongly advised that each supplier

have a manufacturing plant near Dell's plan.

The suppliers should also cooperate with logistics companies that can

both deliver the components and ship the customer orders.

Finally,

the company manages its inventory based on the BMI,

meaning the supply components are kept on the truck only and taken as needed.

While the vendor manages the inventory

delegates,

suppliers communicate with each other through

an internal website called Value Chain.

At this website,

the companies can access information about the inventory status within

the supply chain as well as get demand and production.

Dell has been a successful player in the computer hardware markets

since the very beginning because of its innovative supply chain strategies.

Despite the hard times in the early two thousand's,

its customer centric model helped Del remain afloat

in 2010.

The retailer reinvented its supply chain according to

the changing needs of its target audience.

That just goes to show that renewing and improving their

supply chain strategy continuously can go a long way.

Thank you, everyone for watching this content.

I hope you look

Mm,

yeah,

yes,

yeah.

Thank you.

Role Of IT in a supply chain

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