EC2004_ch08 Suppy Chain [Compatibility Mode]

7/31/2019 EC2004_ch08 Suppy Chain [Compatibility Mode]

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E-Supply Chains,Collaborative Commerce,

and Intrabusiness EC

Chapter 8


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Learning Objectives

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1. Define the e-supply chain and describe itscharacteristics and components.

2. List supply chain problems and their causes.

3. List solutions to supply chain problems provided byEC.

4. Define c-commerce and list its major types.5. Describe collaborative planning and Collaboration,

Planning, Forecasting, and Replenishing (CPFR), andlist their benefits.


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Learning Objectives (cont.)

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6. Define intrabusiness EC and describe itsmajor activities.

7. Discuss integration along the supplychain.

8. Understand corporate portals and theirtypes and roles.

9. Describe e-collaboration tools such asworkflow and groupware.


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How General Motors Is CollaboratingOnline

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The Problem

Information regarding a new car design hasto be shared among a pool of approximately20,000 designers and engineers in

hundreds of divisions and departments at 14GM design labs, some of which are locatedin different countries


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How General Motors Is CollaboratingOnline (cont.)

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The SolutionGM began by examining over 7,000 existing

legacy IT systems, reducing that number to

about 3,000 and making them Web enabledA computer-aided design (CAD) program

that allows 3D design documents to beshared onlineby both the designers (internaland external) and engineers


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Collaborative and Web conferencingsoftware tools have radically changed thevehicle review process

GM electronically sends its specifications forthe seat to the vendors product data system

allowing: Searching Designing Tooling Testing in real time

This expedites the process and cuts costsby more than 10%


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The Results It now takes less than 18 months to bring a

new car to market

The change has produced enormous

savingsShorter cycle time enables GM to bring out

more new car models more quickly,providing the company with a competitiveedge


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What we can learnApplications of EC that help reduce costs

and increase profits

collaborative commerce

improvements along the supply chain

B2E


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1. E-Supply Chains

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The success of organizations depends ontheir ability to manage the flow of materials,information, and money into, within, and out ofthe organization

Supply chain involves activities that take placeduring the entire product life cycleincludingthe movement of information, money andindividuals involved in the movement of a

product or a service


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E-Supply Chains (cont.)

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Supply chain:The flow of materials,information, money, and services from rawmaterial suppliers through factories andwarehouses to the end customers

E-supply chain:A supply chain that ismanaged electronically, usually with Webtechnologies


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Supply chain parts

Upstream supply chain

activities of a manufacturing company with itssuppliers

Internal supply chain in-house processes for transforming the

inputs from the suppliers into the outputs

Downstream supply chain

activities involved in delivering the products tothe final customers


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Managing supply chains

E-supply chain management (e-SCM):Thecollaborative use of technology to improvethe operations of supply chain activities as

well as the management of supply chains


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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

Integrating the supply chain segments more tightly


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E-supply chain consists of six processes:

1. Supply chain replenishment

2. E-procurement

3. Collaborative planning

4. Collaborative design and product development

5. E-logistics

6. Use of B2B exchanges and supply webs


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Major infrastructure elements and tools ofe-supply chains are:Extranets

Intranets

Corporate portalsWorkflow systems and tools

Groupware and other collaborative tools

EDI and EDI/Internet


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2. Supply Chain Problems

and Solutions

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Typical problems along the supply chainSlow and prone to errors because of the

length of the chain involving many internal

and external partners Large inventories without the ability to meet

demand

Insufficient logistics infrastructure

Poor quality


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Supply Chain Problems (cont.)

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Bullwhip effect:Erratic shifts in orders upand down supply chainsCreates production and inventory problems

Stockpiling can lead to large inventories

Effect is handled by information sharingcollaborative commerce


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Need for information sharing along thesupply chain including issues on:

product pricing

inventory

shipping status

credit and financial information

technology news


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Information systems are the links thatenable communication and collaborationalong the supply chain

Information and information technology are

one of the keys to the success, and eventhe survival in todays economy


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3. Supply Chain Problems:

Solutions

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Major solutions provided by an ECapproach and technologies

Automate order taking

Speed order fulfillment

Provide electronic payments

Inventories can be minimized

Collaborative commerce


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4. Collaborative Commerce

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Collaborative commerce

(c-commerce):The use of digitaltechnologies that enable companies tocollaboratively plan, design, develop,manage, and research products, services,and innovative EC applications


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Collaborative Commerce (cont.)

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Major benefits are: cost reduction, increasedrevenue, better customer retention

As a result of:

fewer stock outs

less exception processing

reduced inventory throughout the supplychain

lower materials costs

increased sales volume

increased competitive advantage


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Collaborative Commerce (cont.)

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Collaboration can be done both between and withinorganizations.

Collaborative platform can help in communication andcollaboration between

headquarters and subsidiaries

franchisers and franchisees The platform provides around the globe

e-mail

message boards and chat rooms

online corporate data access


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Traditional collaborative supplychain

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Collaborative Networks

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Collaborative CommerceExample: Target

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Retailersupplier collaboration: TargetCorporationConducts EC activities with 20,000 trading

partners

Extranet enables Target to reach many morepartners, and to use applications notavailable on the traditional EDI

Business customers create personalizedWeb pages


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Collaborative Commerce

Example: Target (cont.)

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5. Collaborative Planning

and CPFR

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In collaborative planning, businesspartnersall have real-time access topoint-of-sale order informationmanufacturers

suppliers distribution partners

other partners


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Collaborative Planningand CPFR (cont.)

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Collaborative planning, forecasting, andreplenishment (CPFR):Project in whichsuppliers and retailers collaborate in theirplanning and demand forecasting to

optimize flow of materials along the supplychain


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CPFR provides a standard frameworkforcollaborative planning Improve demand forecasting for all of the

partners in the supply chain and then

communicate forecasts using information-sharing applications

Suppliers and retailers also coordinate therelated logistics activities


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Collaborative Planningand Fulfillment

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6. Internal Supply Solutions,

Intrabusiness, and B2E

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Intrabusiness EC:E-commerceactivities conducted withinan

organization Business-to-employee (B2E):

Intrabusiness EC in which anorganization delivers products or

services to its employees


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Internal Supply Solutions, Intrabusiness,and B2E (cont.)

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Representative applications of B2Einclude:

1. Providing field representatives withelectronic communication tools

2. Training and education provided overintranets

3. Employee use of electronic catalogs andordering forms


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4. Electronic tools for communication,collaboration, and information discovery

5. Offering corporate stores on the intranetthat sell the companies products toemployees, usually at a discount

6. Systems that disseminate information orallow employees to manage their fringebenefits via the intranet


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Activities among corporate employeesA system by which employees can

collaborate on an individual (sometimesnon-business) level

Via classified ads, corporate equipment maybe sold to employees for private use


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7. Integration along theSupply Chain Example:

Toshiba USA

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Toshiba created a Web-based order entrysystem for product parts using an extranetand intranets

Dealers can place orders for partsuntil 5:00 P.M. for next-day deliverywithout extra charge

Dealers can check accountsreceivable balances and pricingarrangements and read servicebulletins, press releases, and so on

Sales reps can interact moreeffectively with dealers


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Integration along the Supply Chain Example:Toshiba USA (cont.)

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Integration alongthe Supply Chain (cont.)

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Enabling integration and the role ofstandards and Web services Integration involves connectivity,

compatibility, security, and scalability

Applications, data, processes, andinterfaces must be integrated

Middleware, standards and protocols havebeen developed to facilitate integration


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8. Corporate (Enterprise) Portals

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Corporate (enterprise) portal:A gateway for entering acorporate 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


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Corporate (Enterprise) Portals (cont.)

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Types of corporate portals

Generic portals

portal for suppliers

portal for customers

portal for employees

supervisor portals

mobile portalsaccessible via mobile devices,

especially cell phones and PDAs


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Corporate (Enterprise) Portals(cont.)

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Functional portals

Information portals:Portals that store dataand enable users to navigate and query

these data

Collaborative portals:Portals that allowcollaboration


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Corporate portalapplications

knowledge bases andlearning tools

business processsupport

customer-facing (front-line) sales, marketing,and services

collaboration andproject support

access to data fromdisparate corporatesystems

personalized pages forvarious users

effective search andindexing tools

security applications

best practices andlessons learned

directories and bulletinboards

identification of experts

news

Internet access


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Corporate (Enterprise) Portals (cont.)

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Justifying portalsOffer a simple user interface for finding and

navigating content via a browser

Improve access to business content and

increase the number of business users whocan access information, applications, andpeople

Offer the opportunity to use platform-independent software


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9. Collaboration-EnablingTools: Workflow

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Workflow:The movement of information as it flowsthrough the sequence of steps that make up anorganizations work procedures

Workflow systems:Business process automationtools that place system controls in the hands of user

departments to automate information processingtasks


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Collaboration-Enabling Tools:

Workflow (cont.)

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Workflow management:The automation ofworkflows, so that documents, information,and tasks are passed from one participant

to the next in the steps of an organizationsbusiness process


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Collaboration-Enabling Tools:Workflow (cont.)

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Three major categories of workflowapplications:

Collaborative workflow

project-oriented and collaborative types ofprocesses

Production workflow

mission-critical, transaction-oriented, high-volume processes

Administrative workflow

cross between collaborative and production


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Collaboration-Enabling Tools:Groupware

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Groupware:Software products that supportcollaboration, over networks, amonggroups of people who share a common

task or goal Provide a way for groups to share

resources and opinions


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Collaboration-Enabling Tools: GroupDecision Support Systems (GDSS)

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Virtual meetings:Online meetings whose membersare in different locations, frequently in differentcountries

Group decision support system (GDSS):An

interactive computer-based system that facilitates thesolution of semi-structured and unstructured problems

by a group of decision makers


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Collaboration-Enabling Tools:GDSS (cont.)

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Major characteristics of a GDSS

Its goal is to support the process of groupdecision makers by providing automation ofsubprocesses using information technology

tools It is a specially designed information system It encourages generation of ideas, resolution

of conflicts, and freedom of expression


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Collaboration-Enabling Tools: GDSS(cont.)

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GDSSs improve the decision-makingprocess by:

providing structure to the planning process

support parallel processing of informationand idea generation

make larger meetings possible


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Collaboration-Enabling Tools:

Teleconferencing

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Teleconferencing:The use of electroniccommunication that allows two or more people at

different locations to have a simultaneous conference

Video teleconference:Virtual meeting in whichparticipants in one location can see participants at

other locations on a large screen or a desktopcomputer


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Collaboration-Enabling Tools:Teleconferencing (cont.)

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Data conferencing:Virtual meeting in whichgeographically dispersed groups work on documentstogether and to exchange computer files duringvideoconferences

Web conferencingis conducted on the Internet few as two and as many as thousands of people

allows users to simultaneously view something

interaction takes place via messaging or asimultaneous phone teleconference

is much cheaper than videoconferencing becauseit runs on the Internet


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Collaboration-Enabling Tools (cont.)

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Real-time collaboration (RTC) toolshelpcompanies bridge time and space to makedecisions and collaborate on projects by

supporting synchronous communication ofgraphical and text-based information


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Interactive white boards

Another type of groupware where allparticipants join in the use

Users can view and draw on a singledocument pasted onto the electronicwhiteboard on a computer screen

Users can save digital whiteboarding

sessions for future use


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Screen sharing:Software that enablesgroup members, even in different locations,to work on the same document, which isshown on the PC screen of each

participant


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Instant videoa video chat room thatallows users to chat in real time, seeing theperson they are communicating with

Integration and groupware suites Lotus Notes/Domino

Microsoft NetMeeting

Novell GroupWise


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Virtual reality (VR):System that deliversinteractive computer generated 3Dgraphics to a user through a head-mounteddisplay


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Implementation issues

An effective collaborative environment isnecessary

Connecting collaborative tools with filemanagement products on an organizationsintranet is necessary

Protocols to change the read-only Web to a

truly collaborative environment


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Summary

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1. The e-supply chain, its characteristics, andcomponents: Digitized and automated flow ofinformation throughout the supply chain andmanaging it via the Web

2. Supply chain problems and their causes: access to

inventories, lack of supplies when needed, need forrush orders, deliveries of wrong materials or towrong locations, and poor customer service.


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Summary (cont.)

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3. Solutions to supply chains problem provided by EC:automate/expedite order taking, speed orderfulfillment, provide e-payments, control inventories,provide for correct forecasting and scheduling, andimprove collaboration among partners

4. C-commerce: Definitions and types: planned use ofdigital technology by business partners.


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Summary (cont.)

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5. Collaborative planning: concentrates on demandforecasting and on resource and activity planningalong the supply chain. CPFR: business strategythat develops standard protocols and proceduresfor collaboration.

6. Intrabusiness: all EC initiatives conducted within anorganization.


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Summary (cont.)

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7. Integration along the supply chain: critical to thesuccess of companies.

8. Types and roles of corporate portals: for suppliers,customers, employees, and supervisors.

9. Collaborative tools: workflow, groupware, GDSS,

devices that facilitate product design

Documents

EC2004_ch08 Suppy Chain [Compatibility Mode]