IT management in Supply

Chains
Submitted by: Omkar Khairmode
PGDM – HB (2021-2023)
Introduction
• In today's globalized and complex business environment, effective supply chain management has become
essential for companies to stay competitive and meet customer expectations.
• The increasing demand for efficiency, agility, and cost reduction has led to the adoption of advanced
technologies and best practices in supply chain management.
• Among these, IT management plays a critical role in enabling companies to enhance their supply chain
performance and achieve their strategic objectives.
• We will explore the key concepts and best practices in IT management in supply chain, and how they can be
leveraged by companies to improve their supply chain performance and achieve sustainable growth.
• The objective of the project is: 2
 To study and understand about the Supply Chain, the role of information technology and how
technology affects Supply Chain Management.
 To understand existing tools and emerging tools in the industry
 Research Methodology
Scope of the project
This project aims to explore
the role of IT management
in supply chain, identify
best practices, conduct a
survey, and provide
valuable insights for
companies to improve their
supply chain performance.
Data Collection
Methodology
The data collection process
involves both primary and
secondary data. Primary
data is collected through
interviews, and
observations, while
secondary data is gathered
from company reports, case
studies, academic journals,
and other relevant sources.
Case Study
Approach
A case study approach will
be used to conduct an in-
depth analysis of the IT
management practices in
supply chain of a specific
company or industry.
 CASE STUDY: CADBURY - ERP
IMPLEMENTATION SUCCESS
ERP Implementation
• Kraft executed SAP ERP 6.0. Kraft acknowledged ERP for diminishing
operational expenses
• 11,000 representatives were sending information to the organization's SAP
arrangement and it was connected to 1,750 applications by 2008.
• That same year, Kraft additionally added SAP's lord information the executive’s
arrangement, NetWeaver, with an eye toward coordinating heritage frameworks.
• The new U.K. PC framework is essential for a five-year IT change project, called
"Test", pointed toward coordinating the Cadbury Schweppes' store network,
buying, fabricating, circulation, deals and promoting frameworks on a worldwide,
SAP-based ERP stage.
• The project was plagued by issues and defers when it was first presented in
Australia in 2002.
 CASE STUDY: CADBURY - ERP
Benefits IMPLEMENTATION
of ERP SUCCESS
• Cadbury was on a fast paced growth and could not continue with the existing
systems and the pace was too slow due to added inefficiencies. ERP added
efficiency and guided the led all the issues fast paced growth.
• The implementation of ERP brought in a new way of warehouse management
system and brought in structure to branch offices and the depots.
• While implementing the ERP systems, the company has built it upon the past
strengths of the company thereby not losing out on its competitive
• The initial implementation took time and then the successive implementations
took lesser time and cost and there is a huge advantage in saving cost while in the
implementation phase itself.
• It was considered at low cost and high result implementation which by itself
highlights the success and the benefit
 CASE STUDY: HERSHEY’S - ERP
IMPLEMENTATION FAILURE
ERP Implementation

• To improve organization's intensity and Customer Service.

• During late 1996, the administration of Hershey gave its endorsement to an
undertaking named "Enterprise21".
• For this Hershey chose SAP's R/3 ERP programming, Manugistics SCM
programming and Seibel's CRM programming and IBM Global Service to
oversee reconciliation among these three frameworks.
• Hershey chose to go with Big Bang Approach rather than staged methodology.
 CASE STUDY: HERSHEY’S - ERP
IMPLEMENTATION
Reasons of Failure FAILURE
• Deadline: Hershey's venture was booked for a very long time yet the organizations constrained the
execution to 30 months.
• Wrong timing: The organization went live at their busiest time and delivered the arrangements not long
before Halloween.
• Approach (Big bang): To finish the execution interaction, Hershey's selected enormous detonation
execution at the same time carried out a client connection bundle and a coordination’s bundle even without
testing a portion of its modules.
• Unentered information: Hershey's couldn't satisfy the necessary orders of numerous retailers and
merchants despite the fact that Hershey's had completed item supplied in its distribution centers
 CASE STUDY: HERSHEY’S - ERP
Impact ofIMPLEMENTATION
ERP Failure FAILURE
• Problems relating to arrange satisfaction, handling and transportation began to emerge;
Hershey would not have the option to meet its submitted date of conveyance.
• Several of Hershey's wholesalers who had requested the items couldn't supply them to the
retailers on schedule, and consequently lost their believability on the lookout.
• Hershey's inability to carry out the ERP programming on time cost the organization US
$150 million in deals.
 CASE STUDY: HERSHEY’S - ERP
Learning IMPLEMENTATION
from Failure FAILURE
• The First Lesson: An ERP implementation project should not be forced into an
unreasonable timeline. Over-squeezing implementation schedules is a sure-fire way to
overlook critical issues. Testing phases are safety nets that should never be compromised.

• The Second Lesson: Never schedule cutover during busy seasons. Even in a best-case
implementation scenario, companies should still expect steep learning curves and
operational performance dips. By timing cutover during slow business periods, the
company gives itself more slack time to iron out systems kinks. It also gives employees
more time to learn the new business processes and systems. In many cases, it is even
advisable to reduce orders in and around the cutover period. This tactic is aimed at
minimizing exposure to damages caused by potentially undetected errors and less-than-
perfectly- trained users.
CASE STUDY: NIKE ERP IMPLEMENTATION
– A HIT AND MISS
HIT: i2 Technologies
• Improved Supply Chain Planning and Optimization: The software provided Nike with
advanced planning and optimization tools, allowing for better demand forecasting, inventory
management, and production planning. This helped Nike to optimize its supply chain operations,
reduce stockouts, improve order fulfillment, and enhance customer service levels.

• Enhanced Visibility and Collaboration: The software provided real-time visibility into supply
chain data, enabling better coordination and collaboration among Nike's global teams, suppliers,
and partners. This helped Nike to improve communication, align business processes, and make
more informed decisions, leading to increased efficiency and effectiveness in its supply chain
operations.

• Enhanced Scalability and Flexibility: The software allowed Nike to handle a large volume of
data and transactions, support multiple geographies and business units, and adapt to changing
business requirements. This scalability and flexibility helped Nike to improve its agility in
responding to market changes and evolving customer demands.
CASE STUDY: NIKE ERP IMPLEMENTATION
– A HIT AND MISS
MISS: i2 Technologies
• Implementation Challenges and Delays: In the early 2000s, Nike encountered difficulties with
its implementation of the i2 supply chain software, resulting in order delays, product shortages,
and increased costs. These challenges were attributed to issues with data integration, system
stability, and inaccurate demand forecasting, which impacted Nike's supply chain operations and
customer service levels negatively.

• Change Management and User Adoption: Like many ERP implementations, Nike's
implementation of i2 Technologies software faced challenges related to change management and
user adoption. The new software required changes in business processes and workflows, and some
employees faced challenges in adapting to the new system. Effective change management
strategies, including training, communication, and user support, were needed to address these
challenges and ensure widespread adoption of the software.
 RESEARCH ANALYSIS
Overview

• Interacted with the companies to understand the supply chain process and understand if the
processes they follow are automated or manual and importance of IT in their supply chain process.
• Analysis was done to get an overview of the companies using IT in a specific way with up or downstream
process. Like use of IT for transaction process with customers or suppliers. Understand the use in upstream
and downstream process.
• Some companies make use of technology to do transaction process with customers while some do
with the suppliers and some make use of technology with both customers and suppliers. Use of
technology to process delivery verifications and dispatch mostly in case of e-commerce or online
delivery.
• Most of the companies were in upstream part of the supply chain as they are manufacturers of
tools and components. These companies come under MSME.
 RESEARCH ANALYSIS
Companies Responses
Gets requests and bills through EDI with clients with long haul business connections and a high
Ramani Industry Manufacture of Ice-
volume of exchanges. Gets stock levels, request data from clients by means of EDI. Uses SAP
creams
for Supply Chain Planning
Receives order through EDI and automation of some steps to reduce manual work/manual data
Sathyam Manufacturer of Hardware
entry.

Mahendra Tools and Machines India Pvt. Gets order confirmations, charges, bills of filling, and other data and offers orders by means of
Ltd. EDI with few providers with a high volume of exchanges. Use SAP Business 1

Have ERP system implemented uses SAP. Mainly for managing clinical trials and inventory
Hind Pharma
management and for monitoring

Daulat Ram Industries Group Uses Tally for transactions

Kochhar Glass (INDIA) Pvt. Ltd. Do not use ERP
Aarti Chemical Industries Do not use ERP
Abbottsons Impex Private Limited Do not use ERP
 RESEARCH ANALYSIS
Conclusion

• Out of the 8 companies interacted 4 companies responded that they make use of ERP- SAP in
their company.
• When asked about how it has helped them, they said it is GST ready, it helps in customer
relationship management, and inventory planning.
• Decrease of manual work and expenses, improvement of data quality, accelerating of data move,
and volume of exchanges were found to drive the utilization of technology for exchange handling.
• Besides, the explanations behind utilizing IT for exchange handling were somewhat homogenous
between the organizations.
• The organizations expected to decrease manual work related with deals exchanges to lessen the
connected expenses, and to expand the dependability and speed of data move between
organizations.
THANK YOU