Transcript E-Supply Chains

Based on electronic commerce by Turban- Ch 6
1. Define the e-supply chain and describe its
characteristics and components.
2. List supply chain problems and their causes.
3. List solutions provided by e-commerce (EC)
for supply chain problems.
4. Describe RFID supply chain applications.
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6. Describe collaborative planning and
collaboration, planning, forecasting, and
replenishing (CPFR) and list the benefits of each.
7. Discuss integration along the supply chain.
8. Understand corporate portals and their types
and roles.
9. Describe e-collaboration tools such as workflow
software and groupware.
10.Describe Collaboration 2.0 technology and tools.
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• Supply chain
– The flow of materials, information, money, and
services from raw material suppliers through
factories and warehouses to the end customers
• E-supply chain
– A supply chain that is managed electronically,
usually with Web technologies
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• SUPPLY CHAIN PARTS
1. Upstream supply chain
2. Internal supply chain and value chain
3. Do Suppliers downstream supply chain
Internal
upstream
Suppliers
downstream
Manufacturer
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• The processes that occur before manufacturing
or conversion into a deliverable product or
service.
• Procurement
– The process made up of a range of activities by which an
organization obtains or gains access to the resources they
require to undertake their core business activities.
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PURCHASE SUPPLY CHAIN
SALES SUPPLY CHAIN
Purchase Order
Sales Order
Receiving
Picking
Quality Assurance Inspection
Packing
Inventory
Invoicing (Accounts Receivable)
Manufacturing
Sales Commissions
Invoicing (Accounts Payable)
Returns Processing
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• The processes in a supply chain that occur
after manufacturing or conversion that are
dedicated to getting goods and services to
customers and consumers.
• Warehousing
• Logistics
• Distribution
– Business customers
– End users
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• Supply chain management (SCM)
A complex process that requires the
coordination of many activities so that the
shipment of goods and services from supplier
right through to customer is done efficiently
and effectively for all parties concerned.
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SCM aims to:
1. Minimize inventory levels.
2. Optimize production and increase throughput.
3. Decrease manufacturing time.
4. Optimize logistics and distribution, streamline
order fulfillment.
5. Reduce the costs associated with these
activities
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• e-SCM (e-supply chain management )
The collaborative use of technology to improve the
operations of supply chain activities as well as the
management of supply chains.
Along the supply chain we need :
– Information visibility
The process of sharing critical data required to manage the flow
of products, services, and information in real time between
suppliers and customers
Visibility and tracking are important so that there will not be any
surprises related to order quantity or delivery terms. Various
systems and databases track production and distribution so that
any needed adjustments can be made
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– Electronic Data Interchange (EDI)
– Extranets
– Intranets
– Corporate portals
– Workflow systems and tools
– Groupware and other collaborative tools
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1.
2.
3.
4.
5.
6.
E-procurement
E-Logistics
Supply Chain Replenishment
Supply Chain Monitoring and Control Using RFID
Inventory Management Using Wireless Devices
Collaborative Design and Product Development
• We will talk about some of the above
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•
•
•
•
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The use of Web-based technology to support the key
procurement processes, including:
requisitioning,
sourcing,
contracting,
ordering, and
payment.
E-procurement supports the purchase of both direct
and indirect materials and employs several Web-based
functions such as online catalogs, contracts, purchase
orders, and shipping notices
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• RFID (Radio Frequency identification )
• Tags that can be attached to or embedded in objects, animals,
or humans
• Uses radio waves to communicate with a reader for the
purpose of uniquely identifying the object or transmitting
data and/or storing information about the object
RFID tags can be attached to products to more carefully
monitor their location for inventory purposes.
Suppliers attach RFID tags so retailers can track shipment and receiving.
Active tags include an internal power supply while passive tags do not.
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CPFR : Collaborative planning, forecasting, and
replenishment
VMI: Vendor Managed Inventory
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• LIMITATIONS AND CONCERNS OF RFID
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Cost
Interference and accuracy
Limited range in passive RFID
Environment restrictions on usage
Privacy
• RUBEE: AN ALTERNATIVE TO RFID?
– RuBee
Bidirectional, on-demand, peer-to-peer radiating
transceiver protocol under development by the Institute of
Electrical and Electronics Engineers
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• TYPICAL PROBLEMS ALONG THE SUPPLY CHAIN
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Missed deliveries
Improper inventories and quality problems
Bullwhip effect
The bullwhip effect is when large fluctuations in inventories along the
supply chain occur, resulting from small fluctuations in demand for
finished products OR
– ERRATIC shifts in order up and down supply chains
– Solution :
– Need for information sharing along the supply chain
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• EC SOLUTIONS ALONG THE SUPPLY CHAIN
– Visibility
The knowledge about where materials and parts
are at any given time, which helps in solving
problems such as delay, combining shipments, and
more
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• c-commerce (Collaborative commerce )
• The use of digital technologies that enable companies
to collaboratively plan, design, develop, manage, and
research products, services, and innovative EC
applications
• c-hub (Collaboration hub )
• The central point of control for an e-market. A single
c-hub, representing one e-market owner, can host
multiple collaboration spaces (c-spaces) in which
trading partners use c-enablers to exchange data with
the c-hub
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• VMI (vendor-managed inventory )
• The practice of retailers’ making suppliers responsible
for determining when to order and how much to
order
• Retailer–Supplier Collaboration: Target Corporation
• Lower Transportation and Inventory Costs and
Reduced Stock-Outs: Unilever
• Reduction of Design Cycle Time: Clarion Malaysia
• Reduction of Product Development Time: Caterpillar,
Inc.
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• BARRIERS TO C-COMMERCE
• A lack of internal integration, standards, and networks
• Security and privacy concerns, and distrust over who
has access to and control of information stored in a
partner’s database
• Internal resistance to information sharing and to new
approaches
• A lack of internal skills to conduct c-commerce
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• Collaborative planning
– A business practice that combines the business knowledge
and forecasts of multiple players along a supply chain to
improve the planning and fulfillment of customer demand
• Collaborative planning, forecasting, and
replenishment (CPFR)
Project in which suppliers and retailers collaborate in
their planning and demand forecasting to optimize
flow of materials along the supply chain
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• APS systems
(Advanced planning and scheduling )
Programs that use algorithms to identify optimal
solutions to complex planning problems that are
bound by constraints
• PLM
(Product lifecycle management )
Business strategy that enables manufacturers to
control and share product related data as part of
product design and development efforts.
• SUPPORTING JOINT DESIGN
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• HOW INFORMATION SYSTEMS ARE INTEGRATED
– Internal integration
– Integration with business partners
• INTEGRATION ALONG THE EXTENDED SUPPLY CHAIN
– Information integration along the extended supply chain—
all the way from raw material to the customer’s door
 Web Services
An architecture enabling assembly of distributed
applications from software services and tying them
together
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• corporate (enterprise) portal
A gateway for entering a corporate Web site,
enabling communication, collaboration, and
access to company information
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• TYPES OF GENERIC CORPORATE PORTALS
– Portals for Suppliers and Other Partners
– Customer Portals
– Employee Portals
– Executive and Supervisor Portals
– mobile portals
Portals accessible via mobile devices, especially
cell phones and PDAs
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• The Functionalities of Portals
– information portals
Portals that store data and enable users to
navigate and query the data
– collaborative portals
Portals that allow collaboration
• CORPORATE PORTAL APPLICATIONS AND
ISSUES
– Developing Portals
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4.
Workflow
Groupware
Virtual meetings
Collaboration 2.0
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• Workflow
The movement of information as it flows through the
sequence of steps that make up an organization’s work
procedures
• Workflow systems
Business process automation tools that place system
controls in the hands of user departments to automate
information processing tasks
• Workflow management
The automation of workflows, so that documents,
information, and tasks are passed from one participant
to the next in the steps of an organization’s business
process
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– Groupware
Software products that support groups of people who
share common tasks or goals and collaborate on their
accomplishment
– Synchronous Versus Asynchronous Communication
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– Virtual meetings
Online meetings whose members are in different
locations, even in different countries
– Virtual team
A group of employees using information and
communications technologies to collaborate from
different work bases
– Mass Collaboration
– Group decision support system (GDSS)
An interactive computer-based system that facilitates
the solution of semistructured and unstructured
problems by a group of decision makers
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• REAL-TIME COLLABORATION TOOLS :
1. Sharing
2. Electronic Conference
3. Unified Communications
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• Screen-sharing software
Software that enables group members, even in
different locations, to work on the same
document, which is shown on the PC screen of
each participant
– Sharing Documents and Workspaces
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• Electronic Conference
– Teleconferencing
The use of electronic communication that allows
two or more people at different locations to have
a simultaneous conference
– Video teleconference
Virtual meeting in which participants in one
location can see participants at other locations on
a large screen or a desktop computer
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– Data conferencing
aka Whiteboarding . Virtual meeting in which
geographically dispersed groups work on
documents together and exchange computer files
during videoconferences.
– Web Conferencing
Web conferencing can take many forms,
including both audio and video, often accompanied
by collaborative technologies and data sharing.
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• Unified communications (UC)
Simplification of all forms of communication in
the enterprise
– Web Collaboration
– Web Suites
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• Collaboration 2.0
The technology and tools used for
collaboration in the Web 2.0 world and in
Enterprise 2.0 that are in sync with social
networking and user-generated content
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– Collaborative workspace
An interconnected environment in which all the
participants in dispersed locations can access and interact
with each other just as inside a single entity
– Instant messaging
Technologies that create the possibility of realtime textbased communication between two or more participants
over the Internet/intranet
– Presence information
Status indicator that conveys ability and willingness of a
potential communication partner
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– Mobile Collaboration in the Web 2.0 Environment
• Mobile social networking service
• Mobile Unified Communication
• Mobile instant messaging
Messaging service that transposes the desktop messaging
experience to the usage scenario of being on the move
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– VoIP
Voice-over-Internet Protocol
Communication systems that transmit voice calls
over Internet Protocol–based networks
– Blogs, Wikis, Virtual Worlds, Forums, and Other
Tools
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1. How difficult is it to introduce
e-collaboration?
2. How much can be shared with business
partners?
3. Who benefits from vendor-managed inventory?
4. What are the costs and benefits of RFID?
5. Who is in charge of our portal and intranet
content?
6. Who will design the corporate portal?
7. Should we conduct virtual meetings?
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