E-COMMERCE AND SUPPLY CHAINS

1. E-COMMERCE AND SUPPLY CHAINS KULIAH TAMU Jurusan Teknik Informatika – FMIPA UNS Mate Kuliah E-Commerce Hari Kamis, 22 Desember 2011 & 29 Desember 2011 Ruang B404, 13.00 – 15.00 WIB Oleh: WahyudiSutopo LaboratoriumSistemLogistikdanBisnis JurusanTeknikIndustri UniversitasSebelasMaret 2011

2. Outline: • Introduction ( E-Commerce, Business Transactions, Business Performance, SCM ) • A Framework for Analyzing SC • E-Supply Chain • Case Study: SCM & e-SCM

3. 1. Introduction: E-Commerce What is E-commerce? • UsingInternettechnologies to • Conduct business transactions • Improve business performance http://www.alianjava.com/content/original-wooden-furniture-indoor-outdoor-jepara-indonesia-3& http://e-marketing2.com/2011/05/14/e-commerce-marketing/

4. 1. Introduction: Business Transactions Supply Demand A transaction engaged in by a business that initiates the accounting cycle of that business (www.investorwords.com). http://test.b2blearningcenter.com/guideorder/ Generic Supply Chain in Furniture Industry: Wood Forestry Timber R/M Semi Finished Goods F/G Furniture Packed Furniture Distributed Furniture Displayed Furniture Used Furniture Physical SC Producer Manufacturer SC actors W/F Farmers Supplier Distributer Forwarder Retailer User Assembling Finishing Packaging Main activities Farming Harvesting Cutting Logs Milling Cutting Drilling Transporting Distributing Trading Selling On shelf availability Optimized offer and customer profitability Lower combined logistics costs Lower operational costs Integrated farming practices Lower supplier costs Main SC Objectives

5. 1. Introduction: Business Performance There are a number of ways of measuring business performance. www.shutterstock.com/pic-50767420/stock-photo-business-metrics-and-performance-diagram. In general, businesses are always looking at ways of becoming more efficient — reducing costs in relation to income, and so improving profits.

6. 1. Introduction: Supply Chan Management http://arvietrida.wordpress.com/2010/09/11/mengenal-ilmu-supply-chain-management/ Supply Chain Management (SCM) is the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders.

7. 2. A Framework for Analyzing SC (1) • SCM is simple in theory but complicated in implementation

8. 2. A Framework for Analyzing SC (2) Integrated Supply Chain Model Customer Information & Financial Flow Product & Information Flow Retailer Distributor Manufacturing 1st Tier Supplier 1st Tier Supplier 2nd Tier Supplier 2nd Tier Supplier 2nd Tier Supplier

9. 2. A Framework for Analyzing SC (3) General Supply Chain Model Information, Product, Services, Financial, and Knowledge Flow E N D C U N S U M E R S M A T E R I A L S Supplier Network Integrated Enterprise Distributive Network PROC DISTRI BUTION MANUFAC TURING Capacity, Information, Core Competency, and Human Resources Constraints

10. 2. A Framework for Analyzing SC (4) Cycle Stage Customer Customer Order Cycle Retailer Replenishment Cycle Distributor Manufacturing Cycle Manufacturer Procurement Cycle Supplier

11. 2. A Framework for Analyzing SC (5) Customer Order Cycle Customer Arrival Customer Order Receiving Customer Order Entry Customer Order Fulfillment

12. 2. A Framework for Analyzing SC (6) Replenishment Cycle Retail Order Trigger Retail Order Receiving Retail Order Entry Retail Order Fulfillment

13. 2. A Framework for Analyzing SC (7) Manufacturing Cycle Order Arrival Receiving Production Scheduling Manufacturing Shipping

14. 2. A Framework for Analyzing SC (8) Procurement Cycle Order Based on Manufacturer’s Prod.. Schedule or Supplier’s Stocking Needs Receiving at Manufacturer Supplier Production Scheduling Component Manufacturing Shipping

15. 2. A Framework for Analyzing SC (9) Supply Chain Improvement Benefits Delivery Performance Inventory Reduction Fulfillment Cycle Time Forecast Accuracy Overall Productivity Lower Supply Chain Costs Fills Rates Improvement Capacity Realizations 16% – 28% Improvement 25% - 60% Improvement 30% - 50% Improvement 25% - 80% Improvement 10% - 16% Improvement 25% - 60% Improvement 20% - 30% Improvement 10% - 20% Improvement Somber: QAD – PRTM ISC Benchmark Study

16. 3. E-Supply Chain (1) What is E-Supply Chain? • Definition • Supply chain management using E-commerce technology • Collaborative use of technology to enhance B2B processes and improve speed, agility, real time control and customer satisfaction. • SCM could be very costly and hard to implement without E-commerce

17. Global Sourcing & Selling Strategic Partnerships Electronic Commerce Cost Control Customer Service 3. E-Supply Chain (2) • New Technology provide revolutionary changes in SCM • Computers offer ERP solutions for internationalized operation • E-commerce provides a globalized solution to make the world “Flat”. E-SCM • Mobile commerce is the next revolution in SCM

18. 3. E-Supply Chain (3)

19. 4. Case Study: SCM & e-SCM • PengembanganModelPenentuanJumlahPembelian Dan PersediaanBahanBaku Pada PerusahaanFurnitur ( StudiKasus CV ValasindoSentraUsaha ) • An Interactive Web-based Application as Educational Tool for SCM Course by Using FOSS

20. TERIMA KASIH Q & A Next Week Agenda: Research Trend & Opportunities in SCM, e-SCM and e-Commerce