Based on electronic commerce by Turban- Ch 6. 1.Define the e-supply chain and describe its characteristics and components. 2.List supply chain problems.

E-Supply Chains,Collaborative Commerce,

And Corporate Portals

Chapter 3

Based on electronic commerce by Turban- Ch 6

Learning Objectives

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.

6-2Management of E-commerce

Learning Objectives

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.


E-Supply Chains

• Supply chain– The flow of materials, information, money, and

services from raw material suppliers through factories and warehouses to the end customers

• E-supply chain– A supply chain that is managed electronically,

usually with Web technologies


E-Supply Chains:Components

• SUPPLY CHAIN PARTS1. Upstream supply chain2. Internal supply chain and value chain3. Do Suppliers downstream supply chain


Suppliers Manufacturer Costumers

upstream downstream

Internal

Upstream supply chain

• The processes that occur before manufacturing or conversion into a deliverable product or service.

• Procurement– The process made up of a range of activities by which an

organization obtains or gains access to the resources they require to undertake their core business activities.

Management of E-commerce 6-6


Internal supply chain


SALES SUPPLY CHAIN

Sales Order

Picking

Packing

Invoicing (Accounts Receivable)

Sales Commissions

Returns Processing

PURCHASE SUPPLY CHAIN

Purchase Order

Receiving

Quality Assurance Inspection

Inventory

Manufacturing

Invoicing (Accounts Payable)

Downstream supply chain

• The processes in a supply chain that occur after manufacturing or conversion that are dedicated to getting goods and services to customers and consumers.

• Warehousing • Logistics• Distribution

– Business customers– End users




E-Supply Chains• Supply chain management (SCM)

A complex process that requires the coordination of many activities so that the shipment of goods and services from supplier right through to customer is done efficiently and effectively for all parties concerned.


Management of E-commerce 13

E-Supply Chains

SCM aims to:1. Minimize inventory levels.2. Optimize production and increase throughput.3. Decrease manufacturing time.4. Optimize logistics and distribution, streamline

order fulfillment.5. Reduce the costs associated with these

activities


E-Supply Chains:


E-Supply Chains• e-SCM (e-supply chain management )

The collaborative use of technology to improve the operations of supply chain activities as well as the management of supply chains.Along the supply chain we need :– Information visibility

The process of sharing critical data required to manage the flow of products, services, and information in real time between suppliers and customers

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


e-SCM Infrastructure

– Electronic Data Interchange (EDI)– Extranets– Intranets– Corporate portals– Workflow systems and tools– Groupware and other collaborative tools


Activities of e-SCM

1. E-procurement2. E-Logistics3. Supply Chain Replenishment4. Supply Chain Monitoring and Control Using RFID5. Inventory Management Using Wireless Devices6. Collaborative Design and Product Development

• We will talk about some of the above


E-Supply Chains:1-E-procurement

The use of Web-based technology to support the key procurement processes, including:

• requisitioning, • sourcing, • contracting, • ordering, and • payment.

E-procurement supports the purchase of both direct and indirect materials and employs several Web-based functions such as online catalogs, contracts, purchase orders, and shipping notices


2- RFID as a Key Enabler in Supply Chain Management

• RFID (Radio Frequency identification ) • Tags that can be attached to or embedded in objects, animals,

or humans • Uses radio waves to communicate with a reader for the

purpose of uniquely identifying the object or transmitting data and/or storing information about the object


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

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

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



CPFR : Collaborative planning, forecasting, and replenishment

VMI: Vendor Managed Inventory

6-23Consumer Packaged Goods

RFID as a Key Enabler in Supply Chain Management

• LIMITATIONS AND CONCERNS OF RFID– Cost– Interference and accuracy – Limited range in passive RFID– Environment restrictions on usage– Privacy

• RUBEE: AN ALTERNATIVE TO RFID?– RuBee

Bidirectional, on-demand, peer-to-peer radiating transceiver protocol under development by the Institute of Electrical and Electronics Engineers


Supply Chain Problems and Solutions

• TYPICAL PROBLEMS ALONG THE SUPPLY CHAIN– Missed deliveries– Improper inventories and quality problems– Bullwhip effect– The bullwhip effect is when large fluctuations in inventories along the supply

chain occur, resulting from small fluctuations in demand for finished products OR

– ERRATIC shifts in order up and down supply chains– Solution :– Need for information sharing along the supply chain


Supply Chain Problems and Solutions

• EC SOLUTIONS ALONG THE SUPPLY CHAIN– Visibility

The knowledge about where materials and parts are at any given time, which helps in solving problems such as delay, combining shipments, and more


Collaborative Commerce

• c-commerce (Collaborative commerce )• The use of digital technologies that enable companies

to collaboratively plan, design, develop, manage, and research products, services, and innovative EC applications

• c-hub (Collaboration hub ) • The central point of control for an e-market. A single c-

hub, representing one e-market owner, can host multiple collaboration spaces (c-spaces) in which trading partners use c-enablers to exchange data with the c-hub




30Management of E-commerce


• VMI (vendor-managed inventory )• The practice of retailers’ making suppliers

responsible for determining when to order and how much to order

• Retailer–Supplier Collaboration: Target Corporation• Lower Transportation and Inventory Costs and

Reduced Stock-Outs: Unilever• Reduction of Design Cycle Time: Clarion Malaysia• Reduction of Product Development Time:

Caterpillar, Inc.



• BARRIERS TO C-COMMERCE• A lack of internal integration, standards, and networks• Security and privacy concerns, and distrust over who

has access to and control of information stored in a partner’s database

• Internal resistance to information sharing and to new approaches

• A lack of internal skills to conduct c-commerce



Collaborative Planning: CPFR, APS, and PLM

• Collaborative planning– A business practice that combines the business knowledge

and forecasts of multiple players along a supply chain to improve the planning and fulfillment of customer demand

• Collaborative planning, forecasting, and replenishment (CPFR)Project in which suppliers and retailers collaborate in their planning and demand forecasting to optimize flow of materials along the supply chain


35Management of E-commerce

Collaborative Planning, CPFR, APS, and PLM

• APS systems (Advanced planning and scheduling )

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

• PLM (Product lifecycle management )

Business strategy that enables manufacturers to control and share product related data as part of product design and development efforts.• SUPPORTING JOINT DESIGN 6-36Management of E-commerce


Supply Chain Integration

• HOW INFORMATION SYSTEMS ARE INTEGRATED– Internal integration – Integration with business partners

• INTEGRATION ALONG THE EXTENDED SUPPLY CHAIN– Information integration along the extended supply chain—

all the way from raw material to the customer’s door Web Services

An architecture enabling assembly of distributed applications from software services and tying them together


Corporate (Enterprise) Portals

• corporate (enterprise) portalA gateway for entering a corporate Web site, enabling communication, collaboration, and access to company information




• TYPES OF GENERIC CORPORATE PORTALS– Portals for Suppliers and Other Partners– Customer Portals– Employee Portals– Executive and Supervisor Portals– mobile portals

Portals accessible via mobile devices, especially cell phones and PDAs



• The Functionalities of Portals– information portals

Portals that store data and enable users to navigate and query the data

– collaborative portalsPortals that allow collaboration

• CORPORATE PORTAL APPLICATIONS AND ISSUES– Developing Portals



Collaboration-Enabling Environments And Tools

1. Workflow2. Groupware3. Virtual meetings4. Collaboration 2.0

Management of E-commerce 44

Collaboration-Enabling Environments And Tools:

Workflow

• WorkflowThe movement of information as it flows through the sequence of steps that make up an organization’s work procedures

• Workflow systemsBusiness process automation tools that place system controls in the hands of user departments to automate information processing tasks

• Workflow managementThe 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



Groupware

– GroupwareSoftware products that support groups of people who share common tasks or goals and collaborate on their accomplishment

– Synchronous Versus Asynchronous Communication



Virtual Meetings

– Virtual meetingsOnline meetings whose members are in different locations, even in different countries

– Virtual teamA group of employees using information and communications technologies to collaborate from different work bases

– Mass Collaboration

– Group decision support system (GDSS)An interactive computer-based system that facilitates the solution of semistructured and unstructured problems by a group of decision makers 6-47Management of E-commerce


Virtual Meeting Tools

• REAL-TIME COLLABORATION TOOLS :1. Sharing2. Electronic Conference3. Unified Communications




• Screen-sharing softwareSoftware that enables group members, even in different locations, to work on the same document, which is shown on the PC screen of each participant

– Sharing Documents and Workspaces




• Electronic Conference– Teleconferencing

The use of electronic communication that allows two or more people at different locations to have a simultaneous conference

– Video teleconferenceVirtual meeting in which participants in one location can see participants at other locations on a large screen or a desktop computer




– Data conferencingaka Whiteboarding . Virtual meeting in which geographically dispersed groups work on documents together and exchange computer files during videoconferences.

– Web ConferencingWeb conferencing can take many forms,

including both audio and video, often accompanied by collaborative technologies and data sharing.




• Unified communications (UC)Simplification of all forms of communication in the enterprise– Web Collaboration– Web Suites



Collaboration 2.0

• Collaboration 2.0The technology and tools used for collaboration in the Web 2.0 world and in Enterprise 2.0 that are in sync with social networking and user-generated content



Collaboration 2.0

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

– Instant messagingTechnologies that create the possibility of realtime text-based communication between two or more participants over the Internet/intranet

– Presence informationStatus indicator that conveys ability and willingness of a potential communication partner



Collaboration 2.0

– Mobile Collaboration in the Web 2.0 Environment• Mobile social networking service• Mobile Unified Communication• Mobile instant messaging

Messaging service that transposes the desktop messaging experience to the usage scenario of being on the move



Collaboration 2.0

– VoIP Voice-over-Internet Protocol Communication systems that transmit voice calls over Internet Protocol–based networks

– Blogs, Wikis, Virtual Worlds, Forums, and Other Tools


Managerial Issues

1. How difficult is it to introduce e-collaboration?

2. How much can be shared with business partners?3. Who benefits from vendor-managed inventory?4. What are the costs and benefits of RFID?5. Who is in charge of our portal and intranet content?6. Who will design the corporate portal?7. Should we conduct virtual meetings?


Based on electronic commerce by Turban- Ch 6. 1.Define the e-supply chain and describe its characteristics and components. 2.List supply chain problems.

Documents

supply chain management

internal supply chain

upstream supply chain

supply chain parts

management of ecommerce

management of supply

end customers esupply

list supply chain problems