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The Use of Collaboration Tools in Supply Chain: Implication and Challenges

INTRODUCTION. The e-business technologies facilitate the information and communication transfer in different domains without the limitation of place.The use of e-business technologies in SCM propelled companies towards collaboration and converted the way companies are conventionally organized.The

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The Use of Collaboration Tools in Supply Chain: Implication and Challenges

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    1. The Use of Collaboration Tools in Supply Chain: Implication and Challenges Ozlem Bak University of Greenwich

    2. INTRODUCTION The e-business technologies facilitate the information and communication transfer in different domains without the limitation of place. The use of e-business technologies in SCM propelled companies towards collaboration and converted the way companies are conventionally organized. The term collaboration encapsulates a platform that provides cooperation processes based on agreements on use of common application, data, and information technology available to the participants.

    3. INTRODUCTION (cont.) Coordination includes the alteration of activities in order to achieve a common purpose. Cooperation steps further in that it shares the resources. Collaboration can be seen as an overarching term that encapsulates and enhances the capacity of another organization.

    4. INTRODUCTION (cont.) The execution of collaboration processes requires an information infrastructure to link the partner in a supply chain. SCM and its members are jointly responsible for the creation of a product or service. SCM also includes legally and economically independent entities.

    5. INTRODUCTION (cont.) The need for collaboration tools in SCM is of high importance as the competitive advantage remains in linking all trading partners to ensure the timely delivery of goods and services to the final consumer efficiently and effectively. Strategic level is concerned with supplier, formation of collaborations. Tactical level, the emphasis lies on supplier assessment, supplier selection, and resource planning. Operational level, it focuses on the tasks related to order fulfillment and inventory management.

    6. INTRODUCTION (cont.) When considering collaboration problem areas and their impact, it is likely that there will be a number of heterogeneous IT systems within the multiple independent/interdependent organization units of SCM—particularly such as companies, divisions, or departments—with different databases. Collaboration amongst supply chain units plays a much more central role in the operation of the whole organization.

    7. THE ROLE OF E-BUSINESS TECHNOLOGIES IN COLLABORATION AMONG SCM AND ITS BUSINESS UNITS The underlying relationship can be attained from mutually defined goals and interests, again unlike traditional collaboration of supply chains which are mainly driven by market access motivations.

    8. THE ROLE OF E-BUSINESS TECHNOLOGIES IN COLLABORATION AMONG SCM AND ITS BUSINESS UNITS (cont.) Systems and channel integration, which leads to the empowerment of supply chain participants as they can use a common database that is available to larger constituencies. Openness and transparency, which can be achieved through low-cost connectivity between the supply chain participants. Explicit cooperation between wealth-creating agents

    9. THE ROLE OF E-BUSINESS TECHNOLOGIES IN COLLABORATION AMONG SCM AND ITS BUSINESS UNITS (cont.) Learning process and effort is needed to assimilate and/or internalize the transferred knowledge through collaborations. Knowledge transfer needs to be considered in some cases of collaboration wherein the knowledge is not easily replicable and transferable.

    10. THE ROLE OF E-BUSINESS TECHNOLOGIES IN COLLABORATION AMONG SCM AND ITS BUSINESS UNITS (cont.) The collaboration tools were designed originally to coordinate, integrate, and restrict the information flows across several functions in the supply chain. However manufacturers extended the supply and delivery end of partner organizations’ supply chain, so that each supply chain are linked through collaboration tools. The linkage and use of the collaboration tools have not been considered in the literature. 1.??????,??????????????????,??,????????? 2.????????????????????????,?????????????????? ???????????????????????????????? ????????????? ???????????????? ??????????? 3. ????????????????????.1.??????,??????????????????,??,????????? 2.????????????????????????,?????????????????? ???????????????????????????????? ????????????? ???????????????? ??????????? 3. ????????????????????.

    11. THE ROLE OF E-BUSINESS TECHNOLOGIES IN COLLABORATION AMONG SCM AND ITS BUSINESS UNITS (cont.) Therefore, the author has depicted the impact of the use of collaboration tools at three levels: Level 1 SCM Level 2 SCM strategic business unit (SBU) Level 3 individual employee level ??,??????????????????? : 1.???????SCM?? SCM????????????????????????????,?? ???????SCM????????? ??? 2. ???????????????? ???????,??????????/?????????????????????????????????????????????????????????????: ????????????????,?????????????? ??????? ??????????????????,????????????????? 3.???????????????????????????????????? ????????????????????????? ????????????? ????? ??,??????????????????? : 1.???????SCM?? SCM????????????????????????????,?? ???????SCM????????? ??? 2. ???????????????? ???????,??????????/?????????????????????????????????????????????????????????????: ????????????????,?????????????? ??????? ??????????????????,????????????????? 3.???????????????????????????????????? ????????????????????????? ????????????? ?????

    12. Table1. Levels of collaboration2

    13. CASE STUDY DESCRIPTION The impact of two collaboration tools/e-business applications-namely extranet and B2B-in an automotive SCM strategic business unit was examined. The collaboration took place between the SCM and its 12 national suppliers. This procurement collaboration stems from two main stages: Installation and updating Training of the employee of suppliers 1.??????/?????????,?extranet?B2B????????????????????? ??????:???????,??????????/???????????????????????????????????????????? 2.???????SCM?12????(???)???? 3.?????????????????: .?????. .????????1.??????/?????????,?extranet?B2B????????????????????? ??????:???????,??????????/???????????????????????????????????????????? 2.???????SCM?12????(???)???? 3.?????????????????: .?????. .????????

    14. CASE STUDY DESCRIPTION (cont.) These data collection are beneficial in theory generation. Research question explored is behind the emergence of collaborations in the automotive sector. The supplier and original equipment manufacturer (OEM) towards investment in collaborative tools. SCM launched collaborative development program in order to increase the density of distributor and supplier network services. 1.???????????? ?????????? ????????????. ????:????????????(?????????)??????????????????,????????????? //??????????????,?????????????????????????????????????????,??????,??????????????? 2.?????????????????????. 3.???????????(?????? )( OEM )????????? ????????OEM( Original Equipment Manufactures )??????????????,????????????????????????????????????? 4.????????????????????????? ?????? ???? ?? ?????? ???????. ??????????????: (1)??????(platform technology):????????? (2)???????(network and telecommunication technology)? (3)?????(key data)????? (4)?????????(core data-processing)? (5)??????????????1.???????????? ?????????? ????????????. ????:????????????(?????????)??????????????????,?????????????//??????????????,?????????????????????????????????????????,??????,??????????????? 2.?????????????????????. 3.???????????(?????? )( OEM )????????? ????????OEM( Original Equipment Manufactures )??????????????,????????????????????????????????????? 4.????????????????????????? ?????? ???? ?? ?????? ???????. ??????????????: (1)??????(platform technology):????????? (2)???????(network and telecommunication technology)? (3)?????(key data)????? (4)?????????(core data-processing)? (5)??????????????

    15. CASE STUDY DESCRIPTION (cont.) The main policy objectives of the program were formulated with the assistance of SCM, consultants and other stakeholders, with the following goals: Creation of a network with distributors/suppliers Extension of the existing coverage of mobile services enabling overall control Enhancement of competitive advantage Retention of a single control-point ?????????,?SCM ?? ??????????????????????? 1.?????????????????????????????. extranet????????,???????????????,????????????????????,???????????,??????,??????????? 2.????????????? ?? PDA ?????? ??…. 3.????????????????? ??? ??? ??? 4.?????????? ?????? ?????????,?SCM ?? ??????????????????????? 1.?????????????????????????????. extranet????????,???????????????,????????????????????,???????????,??????,??????????? 2.????????????? ?? PDA ?????? ??…. 3.????????????????? ??? ??? ??? 4.?????????? ??????

    16. CASE STUDY DESCRIPTION (cont.) The above-mentioned goals have had some contradictory and similar responses. Suppliers emphasized the important of the SCM taking the coordination role. However the coordination role did not succeed as planned, as the development plans were made considering mainly the coordination aspect, rather that the capability, competencies, and source gap. The suppliers felt that the implementation, such as sending the employees for training, allowing the computers to be updated ,interfered with daily work routine. 1.???????? ???????????? 2.????????SCM??????????. 3.???????????????????????????,???????????? ???????????????????? 4.?????,??,????????,???????,?????????1.???????? ???????????? 2.????????SCM??????????. 3.???????????????????????????,???????????? ???????????????????? 4.?????,??,????????,???????,?????????

    17. CASE STUDY DESCRIPTION (cont.) The resistance to change grew as the benefits resulting from the collaboration were more dominantly based on SCM quartile, whereas the suppliers also had to deal with other customers. The balancing act between the advantage and disadvantages came to a halt when the license agreement entailed a conflict over financial commitment of suppliers. This was rather ironic since supplier-buyer collaborations are based on the need to emphasize long-term relationship building rather than mere financial/market transactions. 1.?????SCM ???????????????????. ?????????????????????????????,????,????? ?????????????????? ???????????? ??????????? ?????????? 2.??????????????????????,???????????? ??????????? ????????? ??????? 3.??????,?????????????????????????,????????/????? ??????????????????????????,???????????????1.?????SCM ???????????????????. ?????????????????????????????,????,????? ?????????????????? ???????????? ??????????? ?????????? 2.??????????????????????,???????????? ??????????? ????????? ??????? 3.??????,?????????????????????????,????????/????? ??????????????????????????,???????????????

    18. DISCUSSION A significant barrier to the collaborations relates to the degree of commitment and reliability of partners. Other collaboration problems confronting the multi-national companies relates to the limited financial strength of partners and power/trust-related issues. A disproportionate contribution from one of the collaboration partners can affect the success of other collaboration partners, and can cause distortion at collaboration levels.

    19. DISCUSSION (cont.) The main difference: information and knowledge. The differences of electronic links with the supplier in relevance to size and level of sophistication (McIvor et al., 2003). The role of collaboration systems used in SCM cannot be seen solely as a data distributor tool that is completely separated from the e-business technologies concept.

    20. DISCUSSION (cont.) Resting on a backbone of IT and telecommunications infrastructures, organizations should be able to shorten chains of command and thus enhance collaboration (Combs and Hull, 1995). External pressures, unpredictable internal conflict, and unforeseen circumstances can arise, particularly in the case of changes related to IT.

    21. CONCLUSION Questions of how to create a win-win situation between suppliers, distributors, the supply chain members, and to what extent collaboration tools are used. Demonstrate factors and individual levels that are critical to the outcome of relationships where supply chain members are involved in collaboration. The three-stage approach introduced in the case study.

    22. FURTHER RESEARCH The preference for collaborative tools expressed in this study are applied at three different levels. Individual attitudes at level three toward collaboration may turn more positive. While there are no clear borders, different models might be necessary for different companies and for different types of inter-company collaborations and interactions.

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