Chapter 7

1. Chapter 7 E-Supply Chains, Collaborative Commerce, Intrabusiness EC, and Corporate Portals

2. Roadmap • E-Supply Chains • Supply Chain Problems and Solutions • Collaborative Commerce • Collaborative Planning and CPFR • Internal Supply Chain Solutions: Intrabusiness and B2E • Integration along the Supply Chain • Collaborate (Enterprise) Portals S. Kungpisdan

3. 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 S. Kungpisdan

4. Procurement Distribution, Warehousing, Transportation, After-sale service Value chain S. Kungpisdan

5. E-Supply Chains • Managing Supply Chains • Managing supply chains can be difficult due to the need to coordinate: • Several business partners • Several internal corporate departments • Numerous business processes • Possibly many customers • Information technology provides two types of software solutions: • SCM • ERP S. Kungpisdan

6. E-Supply Chains e-supply chain management (e-SCM) The collaborative use of technology to enhance B2B processes and improve the operations of supply chain activities as well as the management of supply chains • Speed, agility, real-time control, and customer satisfaction • The success of an e-supply chain depends on: • The ability of all supply chain partners to view partner collaboration as a strategic asset • Information visibility along the entire supply chain • Speed, cost, quality, and customer service • Measure them with the target levels to be achieved • Integrating the supply chain more tightly S. Kungpisdan

7. mySAP SCM Overview PP/DS: Production Planning/Detailed Scheduling S. Kungpisdan

8. E-Supply Chains • Activities and Infrastructure of e-SCM • Supply chain replenishment • Integrate production and distribution processes • Use information to reduce inventories, eliminate stock points, support make-to-order manufacturing strategies • E-procurement • Supply chain monitoring and control using RFID • E-logistics • Web-based tech to support material acquisition, warehousing, and transportation processes • Collaborative planning • Buyers and sellers to develop shared demand forecasts and supply plans for how to support demand • Collaborative design and product development • Share product design and development techniques across multiple companies S. Kungpisdan

9. Procurement Checking and matching invoices Create RFQ Simulate pricing scenario, compare quotations - Create reminder periodically, - Update status of purchase requisitions, quotations, and POs Create PO from requisition or quotation S. Kungpisdan

10. Sales Order Management Pre-sales Issue invoice Create sales order Check stock & confirm delivery date Issue goods delivery note Warehouse Management System Transportation planning S. Kungpisdan

11. Supply Chain Collaboration S. Kungpisdan

12. E-Supply Chains • Infrastructure for e-SCM • Electronic Data Interchange (EDI) • Major tool to facilitate supply chain relationship • Extranets • Support interorganizational communication and collaboration • Intranets • Corporate portals • Gateway for external and internal collaboration • Workflow systems and tools • Systems that manage the flow of information in organizations • Groupware and other collaborative tools • Tools focused on facilitating collaboration and communication between parties S. Kungpisdan

13. Roadmap • E-Supply Chains • Supply Chain Problems and Solutions • Collaborative Commerce • Collaborative Planning and CPFR • Internal Supply Chain Solutions: Intrabusiness and B2E • Integration along the Supply Chain • Collaborate (Enterprise) Portals S. Kungpisdan

14. Supply Chain Problems and Solutions • Typical Problems along the Supply Chain • Supply chains can be very long, involving many internal and external partners located in different places • Both materials and information must flow among several entities, and these transfers, especially when manually handled, can be slow and error-prone • Companies can improve their demand forecasting by using IT-supported forecasts, which are done in collaboration with business S. Kungpisdan

15. Supply Chain Problems and Solutions • Typical Problems along the Supply Chain • A lack of logistics infrastructure causes uncertainties that exist in delivery times • Pure EC companies are likely to have more supply chain problems because they do not have a logistics infrastructure and are forced to use external logistics services • Quality problems with materials and parts can contribute to deficiencies in the supply chain S. Kungpisdan

16. Supply Chain Problems and Solutions • The Need for Information Sharing along the Supply Chain • A supply chain includes the flow of information to and from all participating entities • Many of supply chain problems are the result of poor flow of information, inaccurate information, untimely information, and so on. S. Kungpisdan

17. Supply Chain Problems and Solutions • EC Solutions along the Supply Chain • Order taking can be done over the Internet, EDI, EDI/Internet, or an extranet, and may be fully automated • Order fulfillment can become instant if the products can be digitized • Electronic payments can expedite both the order fulfillment cycle and the payment delivery period • Managing risk to avoid supply-chain breakdown • Inventories can be minimized by introducing a build-to-order (on-demand) manufacturing process as well as by providing fast and accurate information to suppliers • Collaborative commerce among members of the supply chain can be done in many areas: • Product design to demand forecasting S. Kungpisdan

18. Roadmap • E-Supply Chains • Supply Chain Problems and Solutions • Collaborative Commerce • Collaborative Planning and CPFR • Internal Supply Chain Solutions: Intrabusiness and B2E • Integration along the Supply Chain • Collaborate (Enterprise) Portals S. Kungpisdan

19. 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 • Implies communications, information sharing, and collaborative planning done electronically through tools e.g. groupware • Fewer stockouts, less exception processing, reduced inventory throughout the supply chain, lower materials costs, increased sales volume, and increased competitive advantage • Results in cost reduction, increased revenue, and better customer retention 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 S. Kungpisdan

20. CFPR: Collaboration, Planning, Forecasting, and Replenishing VMI: Vendor Managed Inventory S. Kungpisdan

21. Partners at any point of the network can interact with each other, bypassing traditional partners S. Kungpisdan

22. Example of E-Collaboration Retailer-Supplier Collaboration: Target Corporation • Target needs to conduct activities with more than 20,000 trading partners. • Target established an extranet-based system with its partners in 1998 S. Kungpisdan

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24. Roadmap • E-Supply Chains • Supply Chain Problems and Solutions • Collaborative Commerce • Collaborative Planning and CPFR • Internal Supply Chain Solutions: Intrabusiness and B2E • Integration along the Supply Chain • Collaborate (Enterprise) Portals S. Kungpisdan

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26. CPFR 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 S. Kungpisdan

27. The process ends with an order forecast S. Kungpisdan

28. Benefits of CPFR • For retailers • Fewer out-of-stocks • Resultant lost sales • Less stored inventory • For manufacturers • Fewer expedited shipments • Optimal inventory level • Optimally sized production runs S. Kungpisdan

29. Roadmap • E-Supply Chains • Supply Chain Problems and Solutions • Collaborative Commerce • Collaborative Planning and CPFR • Internal Supply Chain Solutions: Intrabusiness and B2E • Integration along the Supply Chain • Collaborate (Enterprise) Portals S. Kungpisdan

30. Internal Supply Chain Solutions:Intrabusiness and B2E • The internal parts of the supply chain are related to the value chain and include: • Inbound logistics • Production processes • Outbound logistics • Marketing and sales • Customer services S. Kungpisdan

31. Internal Supply Chain Solutions:Intrabusiness and B2E intrabusiness EC E-commerce activities conducted within an organization • Intrabusiness can be done: • Between a business and its employees (B2E) • Between units within the business • Among employees in the same business S. Kungpisdan

32. Internal Supply Chain Solutions:Intrabusiness and B2E business-to-employee (B2E) Intrabusiness EC in which an organization delivers products or services to its employees • Some Representative Applications of B2E include: • Providing field representatives and employees in yards, warehouses, and other non-office places with electronic communication tools • Training and education provided over intranets • Employee use of desktop purchasing • Employee use of the corporate intranet for both corporate and personal use to purchase discounted insurance, travel packages, and tickets to events S. Kungpisdan

33. Internal Supply Chain Solutions:Intrabusiness and B2E • Activities between Business Units • Transactions between strategic business units can be easily automated and performed over the organization’s intranet • E.g. Ford dealership network. • Activities among Corporate Employees • Many large organizations also provide a system by which employees can collaborate on an individual (sometimes nonbusiness) level • E.g. place classified ads for buying or selling personal products, corporate equipments S. Kungpisdan

34. Roadmap • E-Supply Chains • Supply Chain Problems and Solutions • Collaborative Commerce • Collaborative Planning, CPFR, and Collaborative Design • Internal Supply Chain Solutions: Intrabusiness and B2E • Integration along the Supply Chain • Collaborate (Enterprise) Portals S. Kungpisdan

35. Integration along the Supply Chain • Enabling Integration • 2 parts of integration: internal integration and integration with business partners • To ease the task of integration, vendors have developed integration methodologies and special software called middleware • In addition, major efforts are being undertaken to develop standards and protocols that will facilitate integration e.g. XML S. Kungpisdan

36. Roadmap • E-Supply Chains • Supply Chain Problems and Solutions • Collaborative Commerce • Collaborative Planning, CPFR, and Collaborative Design • Internal Supply Chain Solutions: Intrabusiness and B2E • Integration along the Supply Chain • Collaborate (Enterprise) Portals S. Kungpisdan

37. Corporate (Enterprise) Portals corporate (enterprise) portal A gateway for entering a corporate Web site, enabling communication, collaboration, and access to company information • Reasons for implementing corporate portals: • To cut costs • To free up time for busy executives and managers • To add to the bottom line • 2 types of corporate portals: generic portals and functional portals S. Kungpisdan

38. Corporate (Enterprise) Portals • Types of Generic Portals • Portals for suppliers and other partners • Customer portals • Employee portals • Executive and supervisor portals • Mobile portals S. Kungpisdan

39. Corporate (Enterprise) Portals • Functional Portals information portals Portals that store data and enable users to navigate and query these data collaborative portals Portals that allow collaboration S. Kungpisdan

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41. Corporate (Enterprise) Portals • Corporate Portal Applications • Knowledge bases and learning tools • Business process support • Customer-facing (front-line) sales, marketing, and services • Collaboration and project support • Access to data from disparate corporate systems • Personalized pages for various users S. Kungpisdan

42. Corporate (Enterprise) Portals • Corporate Portal Applications • Effective search and indexing tools • Security applications • Best practices and lessons learned • Directories and bulletin boards • Identification of experts • News • Internet access S. Kungpisdan

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44. Questions? Next lecture: Innovative EC Systems: From E-Government and E-Learning to C2C