ec & scm
DESCRIPTION
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. - PowerPoint PPT PresentationTRANSCRIPT
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EC & SCM EC & SCM
AT ETA FABRIQUES D’EBAUCHES SAAT ETA FABRIQUES D’EBAUCHES SA
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Presented By:Presented By:
Lito BaysaLito Baysa Jim LindforsJim Lindfors Steve PowellSteve Powell
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PRESENTATION OUTLINEPRESENTATION OUTLINE
IntroductionIntroduction Concepts in Business Concepts in Business
networkingnetworking Case StudyCase Study Implications for designing Implications for designing
EC/SCM solutionsEC/SCM solutions ConclusionConclusion
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INTRODUCTIONINTRODUCTION
Transformation from the old to the Transformation from the old to the ‘new economy’‘new economy’ Rise of new intermediaries, deconstruction of Rise of new intermediaries, deconstruction of
value chains, new business rules, and new value chains, new business rules, and new requirements to meet customer demands in requirements to meet customer demands in terms of speed, availability, cost and service.terms of speed, availability, cost and service.
Business networking through integrated EC and Business networking through integrated EC and SCMSCM
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INTRODUCTIONINTRODUCTION
Integrated EC and SCM approachIntegrated EC and SCM approach Combination of EC and SCMCombination of EC and SCM Industrial physical goodsIndustrial physical goods Existing business networksExisting business networks
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EC AND SCM IN BUSINESS EC AND SCM IN BUSINESS NETWORKINGNETWORKING
Concepts of business networkingConcepts of business networking Extends the scope of BPR methodologiesExtends the scope of BPR methodologies Assumes that production occurs not within Assumes that production occurs not within
vertically integrated companies but in networks vertically integrated companies but in networks where different partners concentrate on their where different partners concentrate on their core activitiescore activities
Addresses new strategic options, new Addresses new strategic options, new possibilities for processes as well as technical possibilities for processes as well as technical issuesissues
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EC & SCM IN BUSINESS EC & SCM IN BUSINESS NETWORKINGNETWORKING
EC: Building the LinksEC: Building the Links Phases of TransactionsPhases of Transactions
Information – identification of vendors and Information – identification of vendors and productsproducts
Contracting – negotiation and decision Contracting – negotiation and decision makingmaking
Settlement – finalization order entrySettlement – finalization order entry
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·
Sell Side
· Single Vendor Catalogs
· Multi Vendor Catalogs· Electronic Malls· Electronic Auctions
·
Sell Side
· Single Vendor Catalogs
· Multi Vendor Catalogs· Electronic Malls· Electronic Auctions
ElectronicCommerce Processes
PROCESSES and APPLICATIONS of EC
Suppliers
Customers
Information
Contracting
Settlement
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EC & SCM IN BUSINESS EC & SCM IN BUSINESS NETWORKINGNETWORKING
SCM: Building the ChainSCM: Building the Chain Four Processes in SCMFour Processes in SCM
Plan – demand and supply planning, Plan – demand and supply planning, inventoryinventory
Source – sourcing and material acquisitionSource – sourcing and material acquisition Make – production, material request and Make – production, material request and
receiptreceipt Delivery – order, warehouse and Delivery – order, warehouse and
transportation management. transportation management.
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·
SupplyChain
ProcessesCustomers
Plan
PLAN
Source
Make
Deliver
SCOR Supply Chain Processes
·
Suppliers
PLAN
Source
Make
Deliver
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EC & SCM IN BUSINESS EC & SCM IN BUSINESS NETWORKINGNETWORKING
Comparison of ConceptsComparison of Concepts Aspects of ComplementarityAspects of Complementarity
Process: Transaction processes link Process: Transaction processes link individual business processesindividual business processes
Scope of design: EC takes a transactional Scope of design: EC takes a transactional perspective whereas SCM takes flow perspective whereas SCM takes flow perspectiveperspective
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·
SupplyChain
ProcessesCustomers
PLAN
Source
Make
Deliver
Complementary Relationship Between EC and SCM
·
Suppliers
PLAN
Source
Make
Deliver
Settlement
Contracting
Information
ElectronicCommerce Processing
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CONCEPTS OF BUSINESS CONCEPTS OF BUSINESS NETWORKINGNETWORKING
Transformation Transformation
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CASE STUDYCASE STUDY
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ETA SA Fabriques d’EbauchesETA SA Fabriques d’Ebauches
Global producer of watches for Global producer of watches for Swatch brandsSwatch brands
Consists of a number of companies Consists of a number of companies that focus on finished movements, that focus on finished movements, component production and R&Dcomponent production and R&D Swatch brands produce and distribute Swatch brands produce and distribute
finished productsfinished products World’s Third Largest manufacturer World’s Third Largest manufacturer
of movementsof movements 10,000 employees -- 15 production 10,000 employees -- 15 production
sites -- 1998 revenue = 1 billion SFsites -- 1998 revenue = 1 billion SF
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Goals -- SolutionsGoals -- Solutions
Goals Solutions
Combine EC and SCM
An electronic catalog of spare parts enables direct order entry. The delivery chain was reengineered to allow direct distribution of spare parts direct to customers.
Industrial Physical Goods
Physical goods
Existing Business Network (Old Economy)
Implemented at a 200 year old company in a traditional industry.
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STRATEGICALLY IMPORTANT STRATEGICALLY IMPORTANT PROBLEMSPROBLEMS
Redesign of the Introduction Redesign of the Introduction Process for New MovementsProcess for New Movements
New distribution strategy for New distribution strategy for movements and spare partsmovements and spare parts
Installation of a new distribution Installation of a new distribution channel for spare parts and channel for spare parts and movementsmovements
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MAIN PROBLEMS ENCOUNTEREDMAIN PROBLEMS ENCOUNTERED
Customers lacked Customers lacked information on interchangeability information on interchangeability
of parts (Swatch Group)of parts (Swatch Group) comprehensive technical comprehensive technical
documentation for assembly, documentation for assembly, storage, etc of movements and storage, etc of movements and spare partsspare parts
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MAIN PROBLEMS (continued)MAIN PROBLEMS (continued)
Low level of customer serviceLow level of customer service long cycle timeslong cycle times misunderstandings during order misunderstandings during order
processingprocessing long delivery timeslong delivery times
Rudimentary customer Rudimentary customer information availableinformation available
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SOLUTIONSOLUTION
Implement a new distribution Implement a new distribution channel for spare partschannel for spare parts
EC/SCM SolutionEC/SCM Solution direct order entrydirect order entry new supply chain for direct new supply chain for direct
deliveries to customersdeliveries to customers
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ETA SA -- ECETA SA -- EC
C:\Documents and Settings\Jim\My Documents\MAGL\IS695\Presentation -- Fabriques D'ebauches SA\ETA SA Customer ServicC:\Documents and Settings\Jim\My Documents\MAGL\IS695\Presentation -- Fabriques D'ebauches SA\ETA SA Customer Service Main.htme Main.htm
C:\Documents and Settings\Jim\My Documents\MAGL\IS695\Presentation -- Fabriques D'ebauches SA\ETA SA Customer ServicC:\Documents and Settings\Jim\My Documents\MAGL\IS695\Presentation -- Fabriques D'ebauches SA\ETA SA Customer Service.htme.htm
C:\Documents and Settings\Jim\My Documents\MAGL\IS695\Presentation -- Fabriques D'ebauches SA\ViewDoc 1.pdfC:\Documents and Settings\Jim\My Documents\MAGL\IS695\Presentation -- Fabriques D'ebauches SA\ViewDoc 1.pdf Presentation -- Presentation -- FabriquesFabriques D'ebauchesD'ebauches SA\EOS ETA Online SA\EOS ETA Online Shop.htmShop.htm
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MAIN BENEFITS of ECMAIN BENEFITS of EC Efficiency of information and contracting servicesEfficiency of information and contracting services
All relevant information on existing and new All relevant information on existing and new products on same channel as order entryproducts on same channel as order entry
((technical, prices, sales conditions, interchangeability)technical, prices, sales conditions, interchangeability)
Improved customer serviceImproved customer service additional: electronic order payment options, additional: electronic order payment options,
technical document downloads, and electronic technical document downloads, and electronic order trackingorder tracking
planned: customer profiling, individual customer planned: customer profiling, individual customer homepages and communities, FAQ, and auctions homepages and communities, FAQ, and auctions for refurbished partsfor refurbished parts
Efficiency of order processingEfficiency of order processing homogenization of master data reduces matching homogenization of master data reduces matching
effort, and hence, reduced misunderstandingseffort, and hence, reduced misunderstandings can handle more volume with more time for can handle more volume with more time for
personalized customer servicepersonalized customer service
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PLAN
Source
Make
Deliver
·PLAN
Source
Make
Deliver
ETA SA
PLAN
Source
Make
Deliver
ETA SA
Non Swatch Grp Brands
Wholesalers
Swatch Group Brands
Retailers
·PLAN
Source
Make
Deliver
Country Organizations
Watchmakers
·PLAN
Source
Make
Deliver
Country Organizations
Watchmakers
Redesigned Supply Chain
Traditional Supply Chain
Reengineering of Spare Parts Supply Chain
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RE-ENGINEERING the SPARE RE-ENGINEERING the SPARE PARTS SUPPLY CHAINPARTS SUPPLY CHAIN
Significant number of Significant number of transaction direct deliveriestransaction direct deliveries Concentration of inventories at Concentration of inventories at
ETA SAETA SA Elimination of warehouses at Elimination of warehouses at
brands and retailersbrands and retailers Delivery guarantees for customersDelivery guarantees for customers
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COMPLEMENTARY of CONCEPTS COMPLEMENTARY of CONCEPTS
--- SCM IMPORTANCE--- SCM IMPORTANCE
Supply chain performance – a Supply chain performance – a selling propositionselling proposition ETA Online higher priorities and ETA Online higher priorities and
delivery guaranteesdelivery guarantees Credit card payment introducedCredit card payment introduced Track shipments and provide Track shipments and provide
accurate shipping cost (3accurate shipping cost (3rdrd party)party)
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Traditional SolutionTraditional Solution Redesigned SolutionRedesigned Solution
ECEC
Consistent product Consistent product catalogs unavailablecatalogs unavailableInefficient order entry (fax, Inefficient order entry (fax, mail,..) and order mail,..) and order processingprocessing
Electronic product Electronic product catalog (easy to use and catalog (easy to use and maintain)maintain)Order entry via same Order entry via same channelchannel
SCSCMM
Long delivery timesLong delivery timesManual integration of Manual integration of ERP (manual re-entry of ERP (manual re-entry of ordersordersMultiple warehouses Multiple warehouses and channelsand channels
Delivery guaranteesDelivery guaranteesDirect link between EC Direct link between EC solution and ERP systemsolution and ERP systemConcentration of Concentration of warehouseswarehousesLess complex fulfillment Less complex fulfillment chain due to smaller chain due to smaller number of business number of business partnerspartners
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·
ETAOnline Shop
PLAN
Source
Make
Deliver
Complementary of EC/SCM
·
PLAN
Source
Make
Deliver
Settlement
Contracting
Information
Retailers
Watchmakers
Country organizations
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COMPLEMENTARITY of EC / SCMCOMPLEMENTARITY 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.
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COMPLEMENTARITY of EC / SCMCOMPLEMENTARITY 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
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IMPLICATIONS for DESIGNING IMPLICATIONS for DESIGNING EC/SCM SOLUTIONSEC/SCM SOLUTIONS
Apply principles of Business Apply principles of Business Process Re-engineering.Process Re-engineering.
Master Data ManagementMaster Data Management Communicate Win-Win Situation.Communicate Win-Win Situation.
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IMPLICATIONS for DESIGNING IMPLICATIONS for DESIGNING EC/SCM SOLUTIONSEC/SCM SOLUTIONS
Apply principles of Business Apply principles of Business Process Re-engineering.Process Re-engineering. Structure (Illustrate) the Structure (Illustrate) the
Organizational, Functional, and Data Organizational, Functional, and Data Dimensions.Dimensions. Strategy Level – Win-win, ROIStrategy Level – Win-win, ROI Process Level – creation of functional Process Level – creation of functional
efficiency.efficiency. Systems Level – applications reliabilitySystems Level – applications reliability
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IMPLICATIONS for DESIGNING IMPLICATIONS for DESIGNING EC/SCM SOLUTIONSEC/SCM SOLUTIONS
Master Data Management as, Master Data Management as, “Hidden Success Factor”“Hidden Success Factor” Identify applicable standards for Identify applicable standards for
handling orders via customer handling orders via customer counter.counter.
Control of interchangeable Control of interchangeable information, pricing information, and information, pricing information, and parts description integrity.parts description integrity.
Although EC/SCM does not Although EC/SCM does not explicitly require it, ETA calls explicitly require it, ETA calls standardization it’s “Hidden Success standardization it’s “Hidden Success Factor” Factor”
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IMPLICATIONS for DESIGNING IMPLICATIONS for DESIGNING EC/SCM SOLUTIONSEC/SCM SOLUTIONS
Communication of Win-Win Communication of Win-Win Situation – ROI.Situation – ROI. Set-up costs.Set-up costs. Running costs.Running costs. Benefits.Benefits.
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ETA-Customer Service (ETA-CS)
Brands, wholesalers, country organizations, retailers, watchmakers
Cooperation principles, win-win relationship
ETA - SA Partner
Strategy LevelThe business strategy level covers relationships among business units and the definition of a vision.
Process LevelThe process level determines the organizational units, the process outputs, organizational activities, important functions, and entities into the database.
IS LevelThe information system levelExists of applications, middleware components, and data bases.
Electronic catalog
Deliver
Source
ETAERP
ProConcept
MSExchange
eMail clientBrowser
SMTPServer
ETAWeb
Server
ASP
Order
Spare Parts
Order
Order Confirmation
Levels of Business Engineering at ETA SA
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CONCLUSION AND NEXT STEPSCONCLUSION AND NEXT STEPS
Integration of EC and SCM is changing Integration of EC and SCM is changing the way businesses work internally and the way businesses work internally and with each other.with each other.
The future will prove whether B2B The future will prove whether B2B relationships will remain committed.relationships will remain committed.
Potential to extend EC/SCM strategy Potential to extend EC/SCM strategy to broader line of products.to broader line of products.