ec2004_ch08 suppy chain [compatibility mode]
TRANSCRIPT
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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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How General Motors Is CollaboratingOnline (cont.)
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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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How General Motors Is CollaboratingOnline (cont.)
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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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How General Motors Is CollaboratingOnline (cont.)
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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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E-Supply Chains (cont.)
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E-Supply Chains (cont.)
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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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E-Supply Chains (cont.)
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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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E-Supply Chains (cont.)
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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 Chains (cont.)
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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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E-Supply Chains (cont.)
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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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Supply Chain Problems (cont.)
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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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Supply Chain Problems (cont.)
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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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Collaborative Planningand CPFR (cont.)
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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 CPFR (cont.)
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Collaborative Planningand CPFR (cont.)
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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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Internal Supply Solutions, Intrabusiness,and B2E (cont.)
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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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Internal Supply Solutions, Intrabusiness,and B2E (cont.)
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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 (Enterprise) Portals(cont.)
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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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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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Collaboration-Enabling Tools (cont.)
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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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Collaboration-Enabling Tools (cont.)
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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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Collaboration-Enabling Tools (cont.)
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Collaboration-Enabling Tools (cont.)
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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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Collaboration-Enabling Tools (cont.)
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Virtual reality (VR):System that deliversinteractive computer generated 3Dgraphics to a user through a head-mounteddisplay
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Collaboration-Enabling Tools (cont.)
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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