Supply Chain Coordination

The role of Information Technology

Train The Trainer Program Pantaloon Retail (I) Ltd. 1

 Learning Objectives
• What is coordination?

• Obstacles to coordination: The Bull-Whip Effect

• Countermeasures to achieve coordination

• The role of information technology in a supply

chain

Train The Trainer Program Pantaloon Retail (I) Ltd. 2

 Information Coordination:
The Bullwhip Effect
Consumer Sales at Retailer Retailer's Orders to Wholesaler
1000 1000
900 900
Consumer demand

800 800

Retailer Order
700 700
600 600
500 500
400 400
300 300
200 200
100 100
0 0
25
27
29
31
33
35
37
39
41
11
13
15
17
19
21
23
7
9
1
3
5

11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
1
3
5
7
9
Wholesaler's Orders to Manufacturer Manufacturer's Orders with Supplier
1000

Manufacturer Order
1000
Wholesaler Order

900 900
800 800
700 700
600 600
500 500
400
400
300
300
200
200
100
100
0
0
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
1
3
5
7
9

25

28

34

40
22

31

37
19
10

13

16
4
1

Train The Trainer Program Pantaloon Retail (I) Ltd. 3

 Role of Information in Supply Chain
Success

Information Global Coordinated Supply Chain

Scope Decisions Success

Train The Trainer Program Pantaloon Retail (I) Ltd. 4

 Information Technology in a Supply
Chain: Legacy Systems
Strategic

Planning

Operational

Supplier Manufacturer Distributor Retailer Customer

Train The Trainer Program Pantaloon Retail (I) Ltd. 5

 Information Technology in a Supply Chain:
ERP Systems
Strategic

Planning

Potential ERP Potential

Operational ERP ERP

Supplier Manufacturer Distributor Retailer Customer

Train The Trainer Program Pantaloon Retail (I) Ltd. 6

 Information Technology in a Supply Chain:
Analytical Applications

Strategic

SCM

Planning APS Transport & Inventory Dem Plan

Planning
Supplier
Apps
Transport execution & CRM/SFA
MES
WMS
Operational

Supplier Manufacturer Distributor Retailer Customer

Train The Trainer Program Pantaloon Retail (I) Ltd. 7

 Information Technology in a Supply Chain:
Future Trends and Issues

• Best of breed versus single integrator

• The role of application service providers
(ASP)
• The role of the Internet and B2B
exchanges

Train The Trainer Program Pantaloon Retail (I) Ltd. 8