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EC & SCM

EC & SCM. AT ETA FABRIQUES D’EBAUCHES SA. Presented By:. Lito Baysa Jim Lindfors Steve Powell. PRESENTATION OUTLINE. Introduction Concepts in Business networking Case Study Implications for designing EC/SCM solutions Conclusion. INTRODUCTION.

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EC & SCM

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  1. EC & SCM AT ETA FABRIQUES D’EBAUCHES SA

  2. Presented By: • Lito Baysa • Jim Lindfors • Steve Powell

  3. PRESENTATION OUTLINE • Introduction • Concepts in Business networking • Case Study • Implications for designing EC/SCM solutions • Conclusion

  4. INTRODUCTION • Transformation from the old to the ‘new economy’ • Rise of new intermediaries, deconstruction of value chains, new business rules, and new requirements to meet customer demands in terms of speed, availability, cost and service. • Business networking through integrated EC and SCM

  5. INTRODUCTION • Integrated EC and SCM approach • Combination of EC and SCM • Industrial physical goods • Existing business networks

  6. EC AND SCM IN BUSINESS NETWORKING • Concepts of business networking • Extends the scope of BPR methodologies • Assumes that production occurs not within vertically integrated companies but in networks where different partners concentrate on their core activities • Addresses new strategic options, new possibilities for processes as well as technical issues

  7. EC & SCM IN BUSINESS NETWORKING • EC: Building the Links • Phases of Transactions • Information – identification of vendors and products • Contracting – negotiation and decision making • Settlement – finalization order entry

  8. EC & SCM IN BUSINESS NETWORKING • SCM: Building the Chain • Four Processes in SCM • Plan – demand and supply planning, inventory • Source – sourcing and material acquisition • Make – production, material request and receipt • Delivery – order, warehouse and transportation management.

  9. EC & SCM IN BUSINESS NETWORKING • Comparison of Concepts • Aspects of Complementarity • Process: Transaction processes link individual business processes • Scope of design: EC takes a transactional perspective whereas SCM takes flow perspective

  10. CONCEPTS OF BUSINESS NETWORKING • Transformation

  11. CASE STUDY

  12. ETA SA Fabriques d’Ebauches • Global producer of watches for Swatch brands • Consists of a number of companies that focus on finished movements, component production and R&D • Swatch brands produce and distribute finished products • World’s Third Largest manufacturer of movements • 10,000 employees -- 15 production sites -- 1998 revenue = 1 billion SF

  13. Goals -- Solutions

  14. STRATEGICALLY IMPORTANT PROBLEMS • Redesign of the Introduction Process for New Movements • New distribution strategy for movements and spare parts • Installation of a new distribution channel for spare parts and movements

  15. MAIN PROBLEMS ENCOUNTERED • Customers lacked • information on interchangeability of parts (Swatch Group) • comprehensive technical documentation for assembly, storage, etc of movements and spare parts

  16. MAIN PROBLEMS (continued) • Low level of customer service • long cycle times • misunderstandings during order processing • long delivery times • Rudimentary customer information available

  17. SOLUTION • Implement a new distribution channel for spare parts • EC/SCM Solution • direct order entry • new supply chain for direct deliveries to customers

  18. ETA SA -- EC • C:\Documents and Settings\Jim\My Documents\MAGL\IS695\Presentation -- Fabriques D'ebauches SA\ETA SA Customer Service Main.htm • C:\Documents and Settings\Jim\My Documents\MAGL\IS695\Presentation -- Fabriques D'ebauches SA\ETA SA Customer Service.htm • C:\Documents and Settings\Jim\My Documents\MAGL\IS695\Presentation -- Fabriques D'ebauches SA\ViewDoc 1.pdf • Presentation -- Fabriques D'ebauches SA\EOS ETA Online Shop.htm

  19. MAIN BENEFITS of EC • Efficiency of information and contracting services • All relevant information on existing and new products on same channel as order entry (technical, prices, sales conditions, interchangeability) • Improved customer service • additional: electronic order payment options, technical document downloads, and electronic order tracking • planned: customer profiling, individual customer homepages and communities, FAQ, and auctions for refurbished parts • Efficiency of order processing • homogenization of master data reduces matching effort, and hence, reduced misunderstandings • can handle more volume with more time for personalized customer service

  20. RE-ENGINEERING the SPARE PARTS SUPPLY CHAIN • Significant number of transaction direct deliveries • Concentration of inventories at ETA SA • Elimination of warehouses at brands and retailers • Delivery guarantees for customers

  21. COMPLEMENTARY of CONCEPTS --- SCM IMPORTANCE • Supply chain performance – a selling proposition • ETA Online higher priorities and delivery guarantees • Credit card payment introduced • Track shipments and provide accurate shipping cost (3rd party)

  22. COMPLEMENTARITY of EC / SCM • Process – • improved information and contracting, direct customer contact (browse catalog and enter order) • EC focus on catalog and order entry channel • SCM focus on order processing, delivery and payment (settlement phase). EC provides efficient link between internal supply processes and the customer.

  23. COMPLEMENTARITY of EC / SCM • Scope of design • New solution for transactions between ETA and customers • Catalog makes interface to customers more efficient • Transaction process covers entire customer process – marketing to after sales • Supply chain activities include Order flow from online shop to ERP, physical goods delivery, financial goods from customer

  24. IMPLICATIONS for DESIGNING EC/SCM SOLUTIONS • Apply principles of Business Process Re-engineering. • Master Data Management • Communicate Win-Win Situation.

  25. IMPLICATIONS for DESIGNING EC/SCM SOLUTIONS • Apply principles of Business Process Re-engineering. • Structure (Illustrate) the Organizational, Functional, and Data Dimensions. • Strategy Level – Win-win, ROI • Process Level – creation of functional efficiency. • Systems Level – applications reliability

  26. IMPLICATIONS for DESIGNING EC/SCM SOLUTIONS • Master Data Management as, “Hidden Success Factor” • Identify applicable standards for handling orders via customer counter. • Control of interchangeable information, pricing information, and parts description integrity. • Although EC/SCM does not explicitly require it, ETA calls standardization it’s “Hidden Success Factor”

  27. IMPLICATIONS for DESIGNING EC/SCM SOLUTIONS • Communication of Win-Win Situation – ROI. • Set-up costs. • Running costs. • Benefits.

  28. CONCLUSION AND NEXT STEPS • Integration of EC and SCM is changing the way businesses work internally and with each other. • The future will prove whether B2B relationships will remain committed. • Potential to extend EC/SCM strategy to broader line of products.

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