Download - Supply Chain Risks - Ecommerce - Updated
7/21/2019 Supply Chain Risks - Ecommerce - Updated
http://slidepdf.com/reader/full/supply-chain-risks-ecommerce-updated 1/14
Operations WorkshopSupply chain risks in ecommerce
SUBMITTED BY: GROUP 8
ANUJ GARG 15P1
RAA!R"S#NA ! 15P$%
O#"& S#ARA 15P$1
N"&"S# S#R"(AS&A(A 15P$1
SAR"!A *"!!AN" 15P$
("*#OR +#O&, 15P$
7/21/2019 Supply Chain Risks - Ecommerce - Updated
http://slidepdf.com/reader/full/supply-chain-risks-ecommerce-updated 2/14
+esi-nin- supply chain
net.orks•
When /esi-nin- a supply chain net.ork0 one nee/s to lookinto the uncertainties oer the lon- term
• A company can make a tremen/ous opportunity or can 2eprone to hu-e risk 2ase/ on the /esi-n o3 its supply chain
For a supply chain to b !cti":• "/enti3y sources o3 risk
• +e4ne uncertainties that are releant
• +iscuss risk miti-ation strate-ies
• ,aluation o3 net.ork /esi-ns
7/21/2019 Supply Chain Risks - Ecommerce - Updated
http://slidepdf.com/reader/full/supply-chain-risks-ecommerce-updated 3/14
!ey risks inole/
• o-istics capacity6 compleity
• orecastin-6 Plannin- accuracy
• Supplier plannin-6 9ommunication "ssues
• Per3ormance o3 supply chain partners
• 9ustomer6 9onsumer pre3erence shi3ts
•
"n:ei2le supply chain technolo-y
• Shorta-e o3 skille/ resources
7/21/2019 Supply Chain Risks - Ecommerce - Updated
http://slidepdf.com/reader/full/supply-chain-risks-ecommerce-updated 4/14
!ey risks inole/
#at$ory Ris% Dri"rs
+isruptions Natural /isaster0 .ar0a2our /isputes0 terrorism
+elays Poor ;uality or yiel/ at supply source"n:ei2ility o3 supply source
Systems Risk "n3ormation in3rastructure 2reak/o.nSystem inte-ration or etent o3 systems2ein- net.orke/
orecast Risk "naccurate 3orecasts /ue to lon- lea/ times0seasonality0 short li3e cycles
"ntellectualproperty risk
(ertical inte-ration o3 supply chainGlo2al outsourcin- an/ markets
Procurement risk ,chan-e rate risk0 price o3 inputs0in/ustry<.i/e capacity utili=ation
"nentory risk "nentory hol/in- cost
Pro/uct alue
7/21/2019 Supply Chain Risks - Ecommerce - Updated
http://slidepdf.com/reader/full/supply-chain-risks-ecommerce-updated 5/14
•
Uncertainties taken into account>• Warehousin- capacity6compleity
• orecastin-6 plannin- accuracy
• Possibl scnario: Shoul/ a 4rm si-n a lon- term contract3or .arehousin- space or -et space 3rom a spot market asnee/e/??@@
• Possibl options:
•
Get all .arehousin- 3rom the spot market as nee/e/• ie/ lease option0 a//itional re;uirements 3rom the spot
market
• lei2le lease .ith a minimum char-e that allo.s aria2leusa-e o3 .arehouse space
"nentory 2ase/ mo/el
7/21/2019 Supply Chain Risks - Ecommerce - Updated
http://slidepdf.com/reader/full/supply-chain-risks-ecommerce-updated 6/14
+ecision &ree
+18%1?15
+$'BC%?D8
+1$)C1?'$
+1$)C%?D8
+ $'BC1?'$
+'%B?$C1?5$
+'%B?$<1?1$
+1)'?8C1?5$
+'%B?$C%?8'
+1)'?8C1?1$
+1)'?8C%?8'
+88?$C1?5$
+88?$C1?1$
+88?$C%?8'
Considering the demand and price fuctuations
7/21/2019 Supply Chain Risks - Ecommerce - Updated
http://slidepdf.com/reader/full/supply-chain-risks-ecommerce-updated 7/14
,aluation o3 Options
• ,pecte/ NP(>
• Option 1> %?7 million
• Option $> '?'$ million
• Option '> B?8) million
• (alue o3 :ei2ility>
• Option ' is 1?5B million more alua2le thanoption$ an/ B?1) million more alua2le thanoption 1
• Option $ is $?)$ million more alua2le than option1
7/21/2019 Supply Chain Risks - Ecommerce - Updated
http://slidepdf.com/reader/full/supply-chain-risks-ecommerce-updated 8/14
Scenario $> 9hoosin- a customer
$ people> similar pro/uct in their carts
1st> ne. customer0 Pro2a2ility o3 Purchase> %?$
$n/> returnin- customer0 PoP> %?)
9ost o3 -eneratin- noti4cation>
9ost o3 pro/uctE shippin-> y
Pro4t 3rom 1st> %?$FSP H yI H %?8F
Pro4t 3rom $n/> %?)FSP H yI H %?BF
SP &''
1?'
y )%
1st '?')
$n/ 1$?)8
SP 1%%
1?)
y )%
1st <%?B8
$n/ 1?7)
7/21/2019 Supply Chain Risks - Ecommerce - Updated
http://slidepdf.com/reader/full/supply-chain-risks-ecommerce-updated 9/14
Scenario $> 9hoosin- acustomer +ecision &reeI
7/21/2019 Supply Chain Risks - Ecommerce - Updated
http://slidepdf.com/reader/full/supply-chain-risks-ecommerce-updated 10/14
Scenario '> 9hoosin- the supplier
S1 S$ S'
9ost o3 pro/uct0 9P 1%% 1%% 1%%
Sellin- price0 SP 1$% 1$% 1$%
+eliery char-e0 / 1% 1% 1%
Pro2a2ility o3 timely success3ul /eliery0
;%?B %?B1 %?B$
Pro2a2ility o3 /elaye/ success3ul /eliery0
r%?B %?B1 %?B1
9ost o3 /elay0 t 1% ) 8Pro4t0 p 11?$ 1$?%' 11?5$
Prot = q*[SP- (CP + d)] + (1-q)*r*[SP (CP + d + t)] + (1-q)*(1-
r)*!*d
' Suppliers> S10 S$ an/ S'
7/21/2019 Supply Chain Risks - Ecommerce - Updated
http://slidepdf.com/reader/full/supply-chain-risks-ecommerce-updated 11/14
Scenario '> 9hoosin- the supplier +ecision treeI
7/21/2019 Supply Chain Risks - Ecommerce - Updated
http://slidepdf.com/reader/full/supply-chain-risks-ecommerce-updated 12/14
Scenario B> Shipment +ecision
D to # M to #
9ost &ime 9ost &im
e
+ama-e6
Perish
&otal
9ost
&otal
&ime
Roa) $% )% NA NA ?$% $% )%
Rail 1% B5 NA NA ?1% 1% B5
*ir 1%% 5 NA NA ?%5 1%% 5
Roa) + *ir 8% ' 5 8 ?1$ 85 11
Rail + *ir 8% ' $ 7 ?7 8$ 1%
Dli"ry Typ Mo) #ost Ti,-. hour )li"ry/ no
prishabl0
Air E Rail 8$ 1%
-. hours/prishabl0 Air 1%% 5&12 )ays/prishabl0 Air E Rail 8$ 1%&12 )ays/non1
prishabl0
Air E Rail 8$ 1%
Bt3n . an) &'
)ays
Rail 8$ B5
•
Shipment o3 a consi-nment 3orm +elhi Warehouse+I to 9oim2atore 9I0 either /irectly or ia 9hennaiI
• +ecision at this leel re;uires to oKset 2et.een+eliery cost0 time an/ risk o3 /ama-e inole/ ineach mo/e
7/21/2019 Supply Chain Risks - Ecommerce - Updated
http://slidepdf.com/reader/full/supply-chain-risks-ecommerce-updated 13/14
imitations•
Not all risk 3actors taken into consi/eration
• Only $ possi2le alues at the en/ o3 each perio/
• ,;ual assumption o3 pro2a2ilities
• &he 3orecaste/ alues mi-ht not 2e accurate
7/21/2019 Supply Chain Risks - Ecommerce - Updated
http://slidepdf.com/reader/full/supply-chain-risks-ecommerce-updated 14/14
&hank you