Transcript Document 7123826

Chapter 7
E-Supply Chains, Collaborative
Commerce, and Corporate Portals
Jason C.H. Chen, Ph.D.
Professor of MIS
Graduate School of Business
Gonzaga University
Spokane, WA 99223 USA
[email protected]
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Learning Objectives
1. Define the e-supply chain and describe its
characteristics and components.
2. List supply chain problems and their causes.
3. List solutions to supply chain problems provided
by EC.
4. Describe RFID supply chain applications.
5. Define c-commerce and list the major types.
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Learning Objectives
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.
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
BUSINESS FOCUS
E-BUSINESS
•SCM
•CRM
•BPR
•ERP
Customer
centric
Who are the customers?
Where are the customers?
Their purchasing habits
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Demands
Products
What they need/want?
How many they need/want?
When they need/want?
How to reach them?
The Product Life Cycle
Introductory
Stage
Growth
Stage
Maturity
Stage
Decline Stage
Total
Market
Sales
Time
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Total
Market
Profit
N
7.1 E-Supply Chains
• The success of organizations (private, public, and
military) depends on their ability to manage the
flow of materials, information, and money into,
within, and out of the organization
– Such a flow is referred to as supply chain
• Supply chain involves activities that take place
during the entire product life cycle including the
movement of information, money and individuals
involved in the movement of a product or a
service
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
FIVE BASIC SUPPLY CHAIN
MANAGEMENT COMPONENTS
Plan
Source
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Make
Deliver
Return
E-Supply Chains
• Definitions and Concepts
– 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
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
E-Supply Chains
(Suppliers)
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
(Firms)
E-Supply Chains (cont.)
• Supply chain parts
– Upstream supply chain
• activities of a manufacturing company with its suppliers (1st tiers)
and their connections to their suppliers (2nd tiers)
• procurement is the major activity
– Internal supply chain
• in-house processes for transforming the inputs from the suppliers
into the outputs
• major concerns are production management, manufacturing,
and inventory control
– Downstream supply chain
• activities involved in delivering the products to the final customers
• attention is directed at distribution, warehousing,
transportation, and after-sale service
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
BASICS OF SUPPLY CHAIN
• Organizations must embrace technologies that can
effectively manage supply chains
What is (are) the elements added in the model?
Involvement
(integration)
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
The Value System:
Interconnecting relationships between organizations
Upstream
value
Firm
value
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Downstream
value
N
E-Supply Chains
• 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.
SCM aims to minimize inventory levels, optimize
production and increase throughput, decrease
manufacturing time, optimize logistics and
distribution, streamline order fulfillment, and
overall reduce the costs associated with these
activities
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
E-Supply Chains
• e-supply chain management (e-SCM)
The collaborative use of technology to improve
the operations of supply chain activities as well as
the management of supply chains
• The success of an e-supply chain depends on:
– The ability of all supply chain partners to view partner
collaboration as a strategic asset
– A well-defined supply chain strategy
– Information visibility along the entire supply chain
– Speed, cost, quality, and customer service
– Integrating the supply chain more tightly
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
E-Supply Chains
• Activities and infrastructure of E-SCM
–
–
–
–
–
–
–
–
Supply chain replenishment
E-procurement
Supply chain monitoring and control using RFID
Inventory management using wireless devices
Collaborative planning
Collaborative design and product development
E-logistics
Use of B2B exchanges and supply webs
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
E-Supply Chains
• e-procurement
The use of Web-based technology to support the key
procurement processes, including requisitioning,
sourcing, contracting, ordering, and payment. Eprocurement 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
• 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
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
E-Supply Chains
• Infrastructure for e-SCM
–
–
–
–
–
–
Electronic Data Interchange (EDI)
Extranets
Intranets
Corporate portals
Workflow systems and tools
Groupware and other collaborative tools
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
E-Supply Chains
• Determining the Right Supply Chain Strategy
– Functional products are staple products (e.g., groceries
and gasoline) that have stable and predictable demand
and call for a simple, efficient, low-cost supply chain
– Innovative products (e.g., fashion and high-technology)
tend to have higher profit margins, volatile demand, and
short product life cycles. These products require a
supply chain that emphasizes speed, responsiveness,
and flexibility rather than low costs
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
7.2 Supply Chain Problems
and Solutions
•
Typical problems along the supply chain
1. Slow and prone to errors because of the
length of the chain involving many internal
and external partners
2. Large inventories without the ability to meet
demand
 Incorrect demand forecasting
3. Insufficient logistics infrastructure
 Vehicle failures to road conditions
4. Poor quality
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Supply Chain Problems and
Solutions (cont.)
• Bullwhip effect : Erratic shifts in orders up
and down supply chains
– Creates production and inventory problems
– Stockpiling can lead to large inventories
• Effect is handled by information sharing collaborative commerce (c-Commerce)
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
N
The Bullwhip
Effect
customer
External Demand
Retailer
Delivery lead time
Order lead time
Wholesaler
Order lead time
Delivery lead time
Distributor
Order lead time
Delivery lead time
Factory
Production lead time
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Supply Chain
Problems and Solutions
• The Need for Information Sharing along
the Supply Chain
• EC Solutions along the Supply Chain
–
–
–
–
–
–
Order taking
Order fulfillment
Electronic payments
Managing risk
Inventories can be minimized
Collaborative commerce
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
7.3 Key Enabling Supply Chain
Technologies: RFID and Rubee
• radio frequency identification (RFID)
Tags that can be attached to or embedded in
objects, animals, or humans and use 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
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Key Enabling Supply Chain
Technologies: RFID and Rubee
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Key Enabling Supply Chain
Technologies: RFID and Rubee
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Key Enabling Supply Chain
Technologies: RFID and Rubee
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Key Enabling Supply Chain
Technologies: RFID and Rubee
• LIMITATIONS OF RFID
– For small companies, the cost of the system may be too
high
– The restriction of the environments in which RFID tags
are easily read
– Different levels of read accuracy at different points
along the supply chain
– Concerns over customer privacy
– Agreeing on universal standards
– Connecting the RFIDs with existing IT systems
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Key Enabling Supply Chain
Technologies: RFID and Rubee
• RuBee
– Bidirectional, on-demand, peer-to-peer
radiating transceiver protocol under
development by the Institute of Electrical and
Electronics Engineers
– It relies on low-frequency magnetic waves to
track products and transfer information.
– It excels in situation where RFID has
limitations.
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Key Enabling Supply Chain
Technologies: RFID and Rubee
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
7.4 Collaborative Commerce
• collaborative commerce (c-commerce)
The use of digital technologies that enable
companies to collaboratively plan, design,
develop, manage, and research products, services,
and innovative EC applications
• 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
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaborative Commerce
(Linear)
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaborative Commerce
(collaborative network)
(Inter-networked)
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaborative Commerce
• grid computing
A form of distributed computing that involves coordinating
and sharing computing, application, data, storage, or
network resources across dynamic and geographically
dispersed organizations
• service-oriented architecture (SOA)
An architectural concept that defines the use of services to
support a variety of business needs. In SOA, existing IT
assets (called services) are reused and reconnected rather
than the more time consuming and costly reinvention of
new systems
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaborative Commerce
• Representative Examples of E-Collaboration
– vendor-managed inventory (VMI)
The practice of retailers’ making suppliers responsible for
determining when to order and how much to order
– Information sharing between retailers and suppliers
– Retailer–supplier collaboration
– Lower transportation and inventory costs and reduced
stockouts
– Reduction of design cycle time
– Reduction of product development time
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaborative Commerce (cont.)
• Information sharing between retailers and
suppliers: P&G and Wal-Mart
– Wal-Mart provides P&G access to sales
information on every item P&G makes for WalMart
– Accomplished done electronically
• P&G has accurate demand information
• Wal-Mart has adequate inventory
– How?
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Exhibit 7.7 Collaborative Commerce Example: Target’s Extranet
(an example, this model can be also employed to other apps)
Connection Via
Public Internet GE Private VAN
VPN, encryption
Global reach
added
Private line
Secure
Web Applications
Customer service
Portal services
Inventory management
Quality assurance
Supply chain
Process design
New products
Budget control
E-procurement
Security
GE
InterBusiness
Partner extranet
Legacy System
EDI
ERP
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Access control
Registration
Authentication
Digital signature
Certification
The Wal-Mart Supply Chain
4
3-a
1-c
1-a
3-b
1-b
2-b
2-a
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaborative Commerce
• Barriers to C-Commerce
– Most organizations have achieved only
moderate levels of collaboration because of:
• 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
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
SCM SUCCESS STORIES
• Top reasons why more and more executives are turning to SCM to
manage their extended enterprises
How does SCM help an organization control costs and save costs?
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
BREAK-1
• Application Case 7.1: Nike’s Supply Chain:
Failure and Eventual Success (p.315)
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
E-Supply Chains and
Collaborative Planning
• e-supply chain management (e-SCM)
The collaborative use of technology to improve
the operations of supply chain activities as well as
the management of supply chains
• 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
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
7.5 Collaborative Planning
and CPFR
• In collaborative planning, business
partners—all have real-time access to pointof-sale order information
–
–
–
–
manufacturers
suppliers
distribution partners
other partners
• What is CPFR?
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaborative Planning, CPFR,
and Collaborative Design
• 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
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Exhibit 7.9 The Collaborative Planning and CPFR Process
Suppliers
Production material
Process
Enterprise
Manufacturing
Process
Forecast Requirements
Process
Customers
Order-Fulfillment
Process
Delivered Orders
Process
Delivered Orders
Process
Planning
Process
Returns& Repairs
Process
Purchase Requirements
Process
Procurement
Process
Order Capture
Process
Customer Orders
Process
Design Requirements
Process
Design Requirements
Process
Support Processes
Settlements
Process
Settlements
Process
Source: E-Business and ERP: Transforming the Enterprise by Norris, G., et al.,John Wiley & Sons, Inc., 2000
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaborative Planning, CPFR,
and Collaborative Design
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaborative Planning, CPFR,
and Collaborative Design
• advanced planning and scheduling (APS)
systems
Programs that use algorithms to identify
optimal solutions to complex planning
problems that are bound by constraints
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaborative Planning, CPFR,
and Collaborative Design
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaborative Planning, CPFR,
and Collaborative Design
• product lifecycle management (PLM)
Business strategy that enables
manufacturers to control and share productrelated data as part of product design and
development efforts
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Competition
• SCP and SCE in the supply chain
PEOPLE
Material Flows
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
FLOWS
Product/Service Flows
7.6 Supply Chain Integration
• How Information Systems Are Integrated
– Internal integration includes connecting applications
with databases and with each other and connecting
customer-facing applications (front end) with order
fulfillment and the functional information systems
(back end)
– Integration with business partners connects an
organization’s systems with those of its external
business partners
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Order Fulfillment at
Amazon.com
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Supply Chain Integration
• Web Services
An architecture enabling assembly of
distributed applications from software
services and tying them together
• Integration along the Extended Supply
Chain
– Information integration along the extended
supply chain—all the way from raw material to
the customer’s door
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
7.7 Corporate (Enterprise) Portals
• Corporate (enterprise) portal:
A gateway for entering a corporate Web
site, enabling communication,
collaboration, and access to company
information
• Corporate portals offer employees, business
partners, and customers an organized focal
point for their interactions with the firm
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Corporate (Enterprise) Portals
Types of Corporate Portals
1. Generic portals
–
–
–
–
–
Portals for suppliers and other partners
Customer portals
Employee portals
Executive and supervisor portal
mobile portals
Portals accessible via mobile devices, especially cell
phones and PDAs
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Corporate (Enterprise) Portals (cont.)
2. Functional portals
– Information portals : Portals that store data
and enable users to navigate and query these
data
– Collaborative portals : Portals that allow
collaboration
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Corporate (Enterprise) Portals
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Corporate (Enterprise) Portals
• Justifying Portals
– Portals offer benefits that are difficult to quantify
• Developing Portals
– Many vendors offer tools for building corporate
portals as well as hosting services
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
7.8 Collaboration-Enabling Tools:
From Workflow to Groupware
• 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
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaboration-Enabling Tools:
Workflow (cont.)
• Three major categories of workflow applications:
– Collaborative workflow
• project-oriented and collaborative types of processes
• goal: to empower knowledge workers
–
Production workflow
• mission-critical, transaction-oriented, high-volume
processes
• goal: to improve productivity and quality of BP.
–
Administrative workflow
• cross between collaborative and production
• goal: to reduce clerical costs in systems with a low
volume of complex transactions.
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaboration-Enabling Tools:
Workflow (cont.)
• Benefits of workflow management systems
–
–
–
–
–
–
–
–
Cycle time reduction
Productivity gains
Improved process control
Improved quality of services
Lower staff training costs
Lower management costs
Improved user satisfaction
More effective collaboration and knowledge sharing
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaboration-Enabling Tools:
Groupware
• Groupware:
Software products that support collaboration, over
networks, among groups of people who share a
common task or goal
• Provide a way for groups to share resources and
opinions
• Groupware technology products are fairly
inexpensive and can be easily incorporated into
existing IS.
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaboration-Enabling Tools:
Group Decision Support Systems
(GDSS)
• Electronic (Virtual) meetings: Online (Webbased) meetings whose members are in
different locations, frequently in different
countries
• 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
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Components of the DSS
The DSS
DBMS
MBMS
Software
System
DGMS
Environment
Task
DBMS: DataBase Management Systems
MBMS: ModelBase Management Systems
DGMS: DialoGue Management Systems
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
User
Multiple participants
(the legislators)
Components of GDSS
HARDWARE
SOFTWARE
PROCEDURES
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
PEOPLE
Burr-Brown GDSS session room
Participants’
stations
Facilitator’s
station
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Duration of Decision-Making Session
Framework: Group Decision Support
N
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Topic
commentor
(examine each of
the divisional 5year plans)
Figure: A Model of a GDSS
Issue Analyzer
(organize and
sort the
comments)
Electronic
Brainstorming
(generate ideas)
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
#9
Voting
Teleconferencing
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Training room
DSS Decision center
USAF Fusion center
USAF Fusion center
Airline Institute
USAF Air Staff Innovation center
Teleconferencing
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaboration-Enabling Tools: GDSS
(cont.)
• Major characteristics of a GDSS
– Its goal is to support the process of group
decision makers by providing automation of
subprocesses using information technology
tools
– It is a specially designed information system,
not merely a configuration of already-existing
system components.
– It encourages generation of ideas, resolution of
conflicts, and freedom of expression
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Collaboration-Enabling Tools: GDSS
(cont.)
• GDSSs improve the decision-making
process by:
– providing structure to the planning process
– support parallel processing of information and
idea generation
– make larger meetings possible
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Decision Support and Intelligent Systems
Same
Place
Different
Place
Same Time
Different Time
GSS in a Decision Room
Web-based GSS
Multimedia Presentation
Systems
Whiteboard
Document sharing
GSS in a Decision Room
Web-based GSS
Workflow management
system
Document sharing
Email, V-mail
Web-based GSS
Whiteboard
Document sharing
Videoconferencing
Audioconferencing
Computer conferencing
Email, V-mail
Web-based GSS
Whiteboard
Email, V-mail
Workflow management system
Document sharing
Computer conferencing with
memory
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
INFORMATION TECHNOLOGY’S
ROLE IN THE SUPPLY CHAIN
Four Factors Driving SCM
SUPPLY CHAIN MANAGEMENT
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Goal and Strategy:
Organizational vs. SCM
Organizational
Goals/
Objectives
Organizational
Strategy
SCM
Strategy
Efficiency
How can SCM
Strategy be
achieved?
IT
Effectiveness
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Throughput
Speed
Availability
Customer satisfaction
Conversion rate
Sell-thru increases
USING IT TO DRIVE THE SUPPLY
CHAIN
•
The four primary drivers of supply chain
management
1.
2.
3.
4.
•
Facilities
Inventory
Transportation
Information
IT
Organizations use these four drivers to support
either a supply chain strategy focusing on
efficiency or a supply chain strategy focusing on
effectiveness
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
USING IT TO DRIVE THE SUPPLY CHAIN
Efficiency
Efficiency
Facilities
Effectiveness
Efficiency
Inventory
Effectiveness
IS/IT
Organizational
Goals
Supply Chain
Strategy
Efficiency
Transportation
Effectiveness
Efficiency
Information
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Effectiveness
Effectiveness
USING IT TO DRIVE THE SUPPLY CHAIN
Efficiency
Facilities
•Location
•Capacity
•Operational design
Inventory
• Cycle
• Safety
Transportation
• Method
• Route
IS/IT
Organizational
Goals
Supply Chain
Strategy
Information
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Effectiveness
• Information sharing
• Push vs. pull
Centralized Supply at Honda America
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
The E-Automotive Supply Chain
SUPPLY CHAIN PROCESS
AUTOMOTIVE PAST
E-AUTOMOTIVE
Customer sales
Push—sell from inventory
Pull—Build-to-order
Production
Goal of even and stable
production
Focus on customer demand,
respond with supply chain
flexibility
Distribution
Mass approach
Fast, reliable, and customized to
get cars to specific customer
location
Customer relationships
Dealer-owned
Shared by dealers and
manufacturers
Managing uncertainty
Large car inventory at dealers
Small inventories with shared
information and strategically
placed parts inventories
Procurement
Batch-oriented; dealers order
based on allocations
Orders made in real time based
on available-to-promise
information
Product design
Complex products don’t match
customer needs
Simplified products based on
better information about what
customers want
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
BREAK-2
• Application Case 7.6: Poste Italiane Gains
Efficiency and Compliance Through
Implementing Workflow Systems (p.346)
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Managerial Issues
1. How difficult is it to introduce e-collaboration?
2. How much can be shared with business
partners? Can they be trusted?
3. Who is in charge of our portal and intranet
content?
4. Who will design the corporate portal?
5. Should we conduct virtual meetings?
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce