chapter 7 - · web viewin collaborative planning, business partners—manufacturers,...

Turban- Electronic Commerce 2010Instructor’s Manual

Chapter 6E-Supply Chains, Collaborative Commerce, and Corporate

PortalsLearning Objectives

Upon completion of this chapter, you will be able to:1. Define the e-supply chain and describe its characteristics and components.2. List supply chain problems and their causes.3. List solutions provided by e-commerce (EC) for supply chain problems.4. Describe RFID supply chain applications.5. Define c-commerce and list the major types.6. Describe collaborative planning and collaboration, planning, forecasting, and replenishing (CPFR) and list the benefits of each.7. Discuss integration along the supply chain.8. Understand corporate portals and their types and roles.9. Describe e-collaboration tools such as workflow software and groupware.10. Describe Collaboration 2.0 technology and tools.

Content

Opening Case: Boeing’s Global Supply Chain for the Dreamliner 7876.1 E-Supply Chains6.2 Supply Chain Problems and Solutions6.3 RFID as a Key Enabler in Supply Chain Management6.4 Collaborative Commerce6.5 Collaborative Planning, CPFR, APS, and PLM6.6 Supply Chain Integration6.7 Corporate (Enterprise) Portals6.8 Collaboration-Enabling Environments and Tools

Managerial IssuesClosing Case: How Wal-Mart Uses EC in Its Supply Chain

Copyright © 2010 Pearson Education, Inc., Publishing as Prentice Hall

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Answers to Section Review Questions

Section 6.1 Review Questions

1. Define the e-supply chain and list its three major parts.

It is a supply chain that is managed electronically, usually using Web technologies and has three major parts: upstream, internal, and downstream.

2. Describe success factors of e-supply chain management.

These factors include the ability to see collaboration as an asset, information visibility, speed/quality/customer service, and tight integration.

3. List the eight processes of e-supply chains.

These include replenishment, e-procurement, monitoring, inventory management, collaborative planning, collaborative design, e-logistics, and the use of B2B exchanges/supply webs.

4. List the major e-supply chain management infrastructures and enabling tools.

These include extranets, intranets, corporate portals, workflow systems, and groupware.

5. Describe a digital supply chain.

A supply chain that is managed electronically, usually with Web technologies.

6. Describe visibility and tracking along the supply chain.

Visibility and tracking are important so that there will not be any surprises related to order quantity or delivery times. Various systems and databases track production and distribution so that any needed adjustments can be made.


1. Describe some typical problems along the supply chain.

Some problems include missed deliveries/improper inventories and quality problems.

2. Describe the reasons for supply chain-related problems.

There are several potential reasons, but many center on lack of communication and trust.

3. Describe the bullwhip effect.


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The bullwhip effect is when large fluctuations in inventories along the supply chain occur, resulting from small fluctuations in demand for finished products.

4. Describe the benefits of information sharing along the supply chain.

The major benefit is an improvement in the overall functioning of the supply chain – better communication provides more information for better planning.

5. List some EC solutions to supply chain problems.

These solutions come in the areas of order taking, order fulfillment, payment, inventory planning and collaborative commerce.


1. Describe how RFID can be used to improve supply chains.

RFID tags can be attached to products to more carefully monitor their location for inventory purposes.

2. Explain how RFID works in a supplier-retailer system.

Suppliers attach RFID tags so retailers can track shipment and receiving.

3. Briefly explain the differences between active and passive RFID tags.

Active tags include an internal power supply while passive tags do not.

4. In what circumstances would it be better to use passive RFID tags? And in what circumstances might it be better to use active RFID tags?

Passive tags are better in cost-sensitive, high volume settings where scanning is easy. Active tags are better in difficult to scan locations.

5. What are some of the major limitations of RFID technology?

Cost of implementation Limited use by environment Accuracy Privacy Lack of standards

6. Describe RuBee and its capabilities.


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RuBee is a bidirectional, on-demand, peer-to-peer radiating transceiver protocol. RuBee has several complimentary features that include:

Use of magnetic waves Longer battery life Better locatiblity Lower cost infrastructure


1. Define c-commerce.

The use of digital technologies that enable companies to collaboratively plan, design, develop, manage, and research products, services, and innovative EC applications.

2. List the major types of c-commerce.

These include joint design and forecasting.

3. Describe some examples of c-commerce.

Some examples include communication/collaboration at RE/MAX, information sharing at Marriot and supply chain visibility at Nygard.

4. Define collaborative networks and distinguish them from traditional supply chain collaboration.

The collaborative network allows partners at any point in the network to interact with each other directly, bypassing traditional partners. Interaction may occur among several manufacturers or distributors, as well as with new players, such as software agents that act as aggregators, B2B exchanges, hubs, or logistics providers.

5. Define VMI and list its benefits.

Vendor-managed inventory (VMI) – The practice of retailers making suppliers responsible for determining when to order and how much to order. Benefits include less time spent on calculations and more accurate order quantities.

6. List some major barriers to c-commerce.

These include technical limitations, security concerns, internal resistance, and lack of internal skills.


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7. How might collaboration support and improve industry supply chains?

It would provide more accurate information about needs and trends which could stabilize the chain and reduce flow times.


1. Define collaborative planning.

In collaborative planning, business partners—manufacturers, suppliers, distribution partners, and other partners—all have real-time access to point-of-sale order information.

2. Define CPFR and describe its advantages.

A project in which suppliers and retailers collaborate in their planning and demand forecasting to optimize flow of materials along the supply chain. This process helps improve integration and reduces costs and increases speed.

3. Describe APS efforts.

Programs that use algorithms to identify optimal solutions to complex planning problems that are bound by constraints.

4. Describe PLM.

PLM is a business strategy that enables manufacturers to control and share product-related data as a part of product design and development efforts.


1. Describe internal and external integration.

Internal integration is integrating systems that function together within a business, whereas external integration is the integration of systems from different firms.

2. Explain the need to connect to an ERP system.

In many firms the ERP system is the core of logistics and planning and it contains a wealth of valuable information.

3. Describe the need for integrating standards and methodologies.

Without standards, integration becomes very complex, with each integration becoming its own unique project.


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1. What is a corporate portal?

A corporate portal is a gateway for entering a corporate Web site, enabling communication, collaboration and access to company information.

2. List the types of corporate portals.

Portal types can include supplier/partner portals, customer portals, employee portals, executive/supervisor portals and mobile portals.

3. List five applications of portals.

Some of the possible applications of corporate portals include: knowledge bases and learning tools, business process support, collaboration and project support, data access, and security applications.

4. List the benefits of corporate portals.

These benefits include simple access/navigation, improved access to information, usability of common applications, and the ability to use platform independent applications.


1. Define workflow systems and management.

The automation of workflows, so that documents, information, and tasks are passed from one participant to the next in the steps of an organization’s business process.

2. Explain the types of workflow management systems and benefits of such systems.

The types include collaborative workflow, production workflow, and administrative workflow. Systems can have a number of benefits, including better process visibility, decreased costs and greater efficiency.

3. List the major groupware tools.

See Exhibit 6.11.


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4. Describe GDSSs and electronic meeting systems.

GDSSs (Group Decision Support Systems) and electronic meeting systems allow users to collaborate and make decisions regardless of their physical locations.

5. Define virtual teams and virtual meetings and describe how they are supported.

Virtual team – a group of employees using information and communications technologies to

collaborate from different work bases

Virtual meetings – online meetings whose members are in different locations, even in

different countries

6. Describe the various types of electronic teleconferencing, including Web-based conferencing.

Teleconferencing can take place using telephone technology, video, data (documents) or the Web.

7. Describe VoIP, screen sharing, and collaborative workspace.

Voice-over-IP (VoIP) – communication systems that transmit voice calls over Internet Protocol–based networks

Screen sharing – allows other remote users to see one user’s computer desktop; whiteboards are shared applications where a group can share a virtual diagramming system

Collaborative workspace – an interconnected environment in which all the participants in dispersed locations can access and interact with each other just as inside a single entity

8. Describe integrated suites and their benefits.

Integrated suites combine several similar products together. They are generally less expensive, easier to use and provide a larger number of features than individual products.

9. Define virtual teams, mass collaboration, and unified communication.


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Virtual Team – a group of employees using information and communications technologies

to collaborate from different work bases

Mass collaboration – a form of collective action that occurs when large numbers of people

work independently on a single project, often modular in its nature

Unified communication (UC) – Simplification of all forms of communication in the

enterprise

Answers to EC Application Case Questions

EC Application Case 6.1: AIRBUS IMPROVES PRODUCTIVITY WITH RFID

1. What are the drivers of the RFID project?

The company hopes to increase efficiency by tracking parts and materials.

2. What information technologies were used in this project?

Technologies included RFID cards, readers and software.

3. What categories of people are supported by RFID?

The system supports both suppliers and those that work internally with inventory.

4. How can RFID provide visibility to Boeing?

The system should allow them to better understand inventories and make better decisions.

5. Go to the link provided in the case sources and watch the Webcast. It will provide you with a virtual tour of Airbus’s supply chain. Report on how RFID provides real-time visibility in the key processes.

Student perceptions of the video will vary.

EC Application Case 6.2: West Marine: A CPFR Success Story

1. What were the major elements of West Marine’s CPFR success?

Some factors in its success were the thoroughness of the integration and planning of the IT systems coupled with the close relationship with suppliers.


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2. What were the benefits of the CPFR implementation for West Marine?

The system allows them to forecast accurately and better understand the supply chain. It also allows them to more easily integrate new acquisitions.

EC Application Case 6.3: WIKIS, BLOGS, AND CHATS SUPPORT COLLABORATIONAT DRKW

1. What capabilities of the wiki are not available in regular e-mail?

It allows for easy group access and editing.

2. Why are so many tools—blogs, wikis, instant messaging, chat, and audio/videoconferencing—needed?

The company hopes to foster communication across its diverse workforce.

3. How does the wiki increase employee productivity? What types of waste does it reduce?

Employees can easily access information without using their time to search, and an expert’s time to explain.

4. What are some social, cultural, and ethical issues involved in the use of wikis for business collaboration?

Many issues exist, but some include transparency of information and control of editing.

Answers to Discussion Questions

1. Define e-supply chain and discuss its importance in supporting organizational performance.

An e-supply chain is a supply chain that is managed electronically, usually with Web technologies. It is more advanced than an IT enabled supply chain that may only use technology in certain points of the chain, as opposed to the entire chain. E-supply chains allow for more efficient processes and expanded communication and collaboration. In many cases they result in decreased delays, increased information flow, better planning, and lower costs.

2. Does a company’s supply chain include the movement of money, materials, and information within the company? How are they interrelated?

A supply chain also includes internal movements. The value chain is a superset of the supply chain that includes all functions that add value to the items in the chain. When external partners are included, this comprises the extended value chain.


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3. Discuss the relationship between c-commerce and corporate portals.

Corporate portals can be used as a method of collaborative commerce for employees, customers and other stakeholders.

4. Compare and contrast a commercial portal (such as Yahoo!) with a corporate portal.

Both Web sites provide a variety of information and a variety of types of potential learning and interaction. An Internet portal such as Yahoo! is horizontal, providing a variety of different types of information about various topics. A corporate portal is vertical, providing information only about the company.

5. Discuss the major considerations that must be taken into account when implementing VMI.

The major consideration is the confidence in the vendor and the vendor’s ability to accurately predict the customer’s need, and place that before their desire for sales.

6. Discuss the difference between a portal, a marketplace, and an e-hub. Do you think that there are any significant differences?

Student responses will vary. A portal is a source for single-company information whereas a market place is a multi-company source of commerce and a hub is a multi-company source of information. They are significantly different entities.

7. Discuss the contribution of Web-enabled ERP systems to effective supply chain management.

Student responses will vary. Web-enabled ERP systems have created numerous benefits including greater understanding of the supply chain, improved monitoring, and better external cooperation.

8. Explain the need for groupware as a facilitator of collaboration.

Groupware allows different groups and individuals to freely collaborate and communicate. This is the function groupware is designed for, and it simplifies the process and generally adds to the richness of the communication.

9. Discuss the need for workflow systems as a companion to e-commerce.

Workflow systems allow for more efficient movement of orders, information, or goods.

10. It is said that c-commerce signifies a move from a transaction focus to a relationship focus among supply chain members. Discuss.


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Student responses will vary. By increasing communication, information flow and openness, c-commerce tends to view interactions as relationships instead of transactions.

11. Discuss the need for virtual meetings.

Student responses will vary. These meetings allow for greater communication that may not have existed due to the constraints of physical meetings.

12. Discuss how CPFR can lead to more accurate forecasting and discuss how it can resolve the bullwhip effect.

By increasing information flow and openness across the supply chain, CPFR allows all parties to have access to the data used to make forecasts. Having more real data (and fewer estimates) allows for more accurate forecasts and inventory levels.

13. Describe the advantages of RFID over a regular bar code in light of supply chain management.

RFID eliminates the need to scan barcodes, since movement along the supply chain is tracked by actual location.

14. Compare a collaborative hub with a collaborative network.

A hub is a centralized location for collaboration while a network is the infrastructure and tools to collaborate remotely.

15. Enter mobileworldcongress.com and web20.telecomtv.com. List and discuss three mobile

communication-related issues of current interest.

Student responses will vary.

Internet Exercises(Note: URLs may change over time; please check the Internet Exercises on the Turban Web site for possible updates: www.prenhall.com/turban.)

1. Enter ca.com/products and register. Then take the Clever Path Portal Test Drive. (Flash Player from Macromedia is required.) Then enter ibm.com and bea.com. Prepare a list of the major products available for building corporate portals.


http://www.prenhall.com/turban

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Student reports will vary.

2. Enter bea.com. Find the white papers about corporate portals and their justification. Prepare a report based on your findings.


3. Enter doublediamondsoftware.com/product_overview.htm. Identify all potential B2B applications and prepare a report about them.


4. Investigate the status of CPFR. Start at vics.org/committees/cpfr, google.com, and yahoo.com. Also enter supply-chain.org and find information about CPFR. Write a report on the status of CPFR.


5. Enter sap.com and bea.com, and find the key capabilities of their enterprise portals. List the

benefits of using five of the capabilities of portals.


6. Enter nokia.com, mdsi.com, and symbolic.com. Identify the B2E products you find at these sites. Prepare a list of the different products.


7. Enter i2.com and review its products. Explain how some of the products facilitate collaboration.

This firm offers software products to assist in supply chain collaboration in the following areas: Fulfillment Optimization Logistics Optimization Production Optimization Revenue and Profit Optimization Spend Optimization

8. Enter collaborate.com and read about recent issues related to collaboration. Prepare a report.



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9. Enter kolabora.com or mindjet.com. Find out how collaboration is done. Summarize the benefits of this site to the participants.


10. Enter vignette.com or cybozu.com and read the company vision for Collaborative Commerce. Then view the demo. Explain in a report how the company facilitates c- commerce.


11. Enter lotus.com and find their collaboration-support products. How do these products support groups?

Lotus is a division of IBM that offers many software solutions including communication and collaboration software. The current product offering (listed below) offers several methods of group work with the ability to store and cross-reference communication using an IBM database solution.

Lotus Workplace Messaging Lotus Notes Lotus Domino Lotus Domino Express Lotus Domino Web Access Lotus Domino Access for Microsoft Outlook Lotus Domino Designer Lotus Enterprise Integration Lotus Mobile & Wireless Solutions Lotus Domino Unified Communication Services Lotus Domino WebMail

12. Enter supplyworks.com and worldchain.com. Examine the functionalities provided for supply chain improvements (the inventory management aspects).

Worldchain.com offers a variety of software and systems to automate supply chains, display and order inventory, and add communication.

13. Enter 3M.com and smarttech.com. Find information about their whiteboards. Compare the products.

Both sites appear to have electronic whiteboards that capture notes and export them as images or text. 3M's product is at http://www.3m.com/meetings/product_catalog/digitalwalldisplay/dwd_specs.jhtml, whileSmarttech's is at http://www. smarttech.com .

14. Enter electronicsupplychain.org, then click “Resources.” Find new material on supply chain automation.


http://www.smartboard.com/

http://www.3m.com/meetings/product_catalog/digitalwalldisplay/dwd_specs.jhtml

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15. Enter epiqtech.com and find information about products related to this chapter.


16. Enter future-store.org and find the progress on the use of RFID and other tools in supply chain improvements in retailing.


17. Enter pocketvideo.com and microsoft.com/windowsmobile/en-us/devices/default.mspx.Examine the demos. List the capabilities.


18. Learn about Lotus Sametime Standard by visiting www-01.ibm.com/software/lotus/sametime. Click “View the Screenshots.”Prepare a report of the software’s capabilities that support real-time collaboration.


19. Enter campfirenow.com. Explore its capabilities and write a report.


Team Assignments and Role Playing

1. Have each team download a free copy of Groove from groove.net. Install the software on the members’ PCs and arrange collaborative sessions. What can the free software do for you? What are its limitations?


2. Each team is assigned to an organization. The team members will attempt to identify several supply chains, their components, and the partners involved. Draw the chains and show which parts can be treated as e-supply chain parts.



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3. Each team is assigned to a major vendor of corporate portals, such as BEA, TIBCO, IBM or Oracle. Each team will check the capabilities of the corporate portal tools and try to persuade the class that its product is superior.


4. Each team is assigned to a major collaboration suite (from Lotus, Microsoft, Oracle, Cisco/WebEx, Google Apps, and so forth). Prepare a list of capabilities and present arguments for the superiority of the suite.


5. Each team studies a vendor that supports mobile communication, messaging, and collaboration (e.g., Microsoft, Sybase, Motorola, Nokia, Research-in-Motion). Prepare a report on the capabilities of the major products.


6. Address the following topics in a class discussion:a. Describe how the advent of the Internet in the late 1990s has affected supply chain management. Include in your answer the contribution of the Internet to the following aspects and challenges:

◗ Globalization◗ Outsourcing, including business process outsourcing◗ Increasingly demanding customers◗ Diminishing product life cycles

b. Discuss the proposition that competition in contemporary business is best described and conceptualized as competition between industry supply chains rather than between individual corporations.c. Discuss the importance of taking a holistic view of supply chain management rather than simply approaching supply chain management from a business-process and IT viewpoint.d. Is Collaboration 2.0 useful?e. What is the strategic value of mobile collaboration?

Student responses will vary.

Answers to End-of-Chapter Real-World Case Questions: HOW WAL-MART USES EC IN ITS SUPPLY CHAIN

1. Why is Wal-Mart concentrating on supply chain projects?

The company feels this is an area of strength and that efficiencies here can lead to greater profitability.

2. Wal-Mart mandates RFID tags from all its large suppliers. Why are some suppliers not in compliance?


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Some suppliers had difficulty modernizing their own operation to accommodate this.

3. Investigate the options for international customers on the Wal-Mart Web site.

Student experiences will vary based on when the search was conducted.

4. Compare walmart.com with target.com, costco.com, kmart.com, and other direct competitors. Write a report.

Student perceptions will vary.

5. Envision how transaction processing systems (TPSs) are used in Wal-Mart stores. Go to Wal-Mart and pay with a check. How has EC improved the old way of paying with checks?



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