MIS AND TSCM

Group Members

Vibha S. Parab Sachin Patil

Introduction

Fierce competition in todays global markets, the introduction of products with shorter life cycles, and the heightened expectations of customers have forced business enterprises to focus attention on, their supply chains.

This has been made easier by the use of software for managing the demand and supply chain. Using supply chain software, a manufacturer can communicate with his suppliers constantly about the raw materials required for production. This enables the supplier to plan and supply the raw materials according to the manufacturers demand. On the other hand, demand chain software provides the channel members and the employees of a manufacturer with accurate and up-to-date information about the goods and services available with the manufacturer, their prices, the distributors and the suppliers in a particular region.

What is MIS ?
MIS stands for Management Information System. A management information system (MIS) is a system that provides information needed to manage organizations efficiently and effectively.[1] Management information systems involve three primary resources: technology, information, and people. It's important to recognize that while all three resources are key components when studying management information systems, the most important resource is people[according to whom?]. Management information systems are regarded as a subset of the overall internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization.[2] Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. decision support systems, expert systems, andexecutive information systems.[2]

What is TSCM ?
TSCM stands for Total Supply Chain Management. Total Supply Chain Management is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply Chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chain. Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all 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. Supply Chain Management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of processes and activities with and across marketing, sales, product design, finance and information technology.

Relationship Between MIS and TSCM

In the modern business era there has been a trend among corporations to focus attention on supply chain management in order to cut costs. This is largely due to an increase in lower cost competitive products and services within a given industry. With such a high level of competition in the market, businesses are forced to cut as many corners as they can to ensure their products have a competitive pricing level while still maintaining consumer appeal. To make this task easier and more efficient, managers have been implementing their supply chain management strategies with MIS. This allows managers to focus on the firms daily operations while MIS monitors what is happening and recommends what should be done based on various facts and figures.

Supply chain planning systems became the standard of industry. These systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product. Such systems help companies make better operating decisions, such as determining how much of a specific product to manufacture in a given time period; establishing inventory levels for raw materials, intermediate products, and finished goods; determining where to store finished goods; and identifying the transportation mode to use for products delivery. (Laudon 388)

Example Of Hershey Foods Corporation

One such company that has started using Supply chain planning systems is Hershey Foods Corporation. As Hershey has become an international leader in chocolate and other confectionaries it has striven to make its operations more efficient using improved methods of production, packaging, and deliver. More recently the company has partnered with GENCO to establish a Six Sigma program for its supply chain to operate at even higher productivity.

GENCO and Hershey's collaborated to develop a web ordering system sales reps use to order samples and merchandising material, as well as a software solution for inventory management and warehousing. GENCO handles distribution, order processing, and customer service, ensuring that the Hershey's reps have everything they need to meet with clients such as Safeway, Albertson's, CVS, and Wal-Mart, or to present at trade shows and conferences. (Partridge) After the Six Sigma program was put in place, Hershey realized employees did not always have enough warehouse work to keep them busy, and were sometimes reassigned to customer service or cleaning chores. Seeing they were wasting productive time, Hershey's scaled back the Lebanon warehouse staff by 25 percent, or 1.5 full-time employees, a 7

substantial reduction for a six-person team. The move saves Hershey's $45,000 per year in labor costs. (Partridge)

Use of Wireless Technology and GPS

In recent years, supply chain management technology has become even more useful to managers with the advent of wireless technology and GPS. Older supply chain management information systems usually involved of a handful of managers using statistical software and Microsoft Excel to tabulate what trends had taken place in a corporation during the previous periods. The implementation of wireless technology and GPS allowed managers to receive real time data with much less paperwork and manual input than previous systems.

Use of M2M Technology

The newest of these technologies is Machine to Machine (M2M) technology. M2M uses a network of different input devices and machinery to create a real time network of all products and processes within a supply chain. M2M is gaining popularity because of its efficiency in data collection, robotics, remote monitoring, status tracking, offsite diagnostics and maintenance, and fleet management. M2M allows companies to perform live monitoring of every phase of manufacturing -for example, providing a clear picture of work in progress. It also gives businesses the ability to continuously monitor vendor supply, raw materials and finished product inventory control, and carrier interface, among other processes. And unlike RFID, M2M often requires minimal capital investment and IT staffing increases. (Inbound Logistics) M2M technology helps companies optimize supply chain flow by tying together devices and software integral to process flows within and between the links in the chain, [] This can lead to more precise and effective process analysis, remediation, and change. As a result, companies can reduce costs, increase profits, and achieve a competitive advantage. (Inbound Logistics) Although M2M is still in its first stages of implementation, it has great potential to become an industry stander for supply chain managers. In order to do this, however, it will require implementation into existing SCM frameworks. M2M technology has to speak to users' desires to monitor all devices and processes within their infrastructures regardless of manufacturer, [...] Sony's M2M technology, for example, deals with any 9

device that 'speaks' industry standard protocols such as SNMP and XML. This helps [] meet customer demand for flexibility, which is essential considering the mix of manufacturers' devices every company has.

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