Chapter 7 E-Supply Chains, Collaborative Commerce, Intrabusiness EC, and Corporate Portals
Jan 23, 2016
Chapter 7
E-Supply Chains,
Collaborative Commerce,
Intrabusiness EC, and
Corporate Portals
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Roadmap
• E-Supply Chains
• Supply Chain Problems and Solutions
• Collaborative Commerce
• Collaborative Planning and CPFR
• Internal Supply Chain Solutions: Intrabusiness and B2E
• Integration along the Supply Chain
• Collaborate (Enterprise) Portals
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E-Supply Chains
• Definitions and Conceptssupply 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
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Procurement
Value chain
Distribution,Warehousing,Transportation,After-sale service
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E-Supply Chains
• Managing Supply Chains– Managing supply chains can be difficult due to the
need to coordinate:• Several business partners
• Several internal corporate departments
• Numerous business processes
• Possibly many customers
– Information technology provides two types of software solutions:
1.SCM
2.ERP
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E-Supply Chains
e-supply chain management (e-SCM)The collaborative use of technology to enhance B2B processes and
improve the operations of supply chain activities as well as the management of supply chains
• Speed, agility, real-time control, and customer satisfaction
– 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
– Measure them with the target levels to be achieved
• Integrating the supply chain more tightly
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mySAP SCM Overview
PP/DS: Production Planning/Detailed Scheduling
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E-Supply Chains
• Activities and Infrastructure of e-SCM– Supply chain replenishment
• Integrate production and distribution processes• Use information to reduce inventories, eliminate stock points, support
make-to-order manufacturing strategies– E-procurement– Supply chain monitoring and control using RFID– E-logistics
• Web-based tech to support material acquisition, warehousing, and transportation processes
– Collaborative planning• Buyers and sellers to develop shared demand forecasts and supply
plans for how to support demand– Collaborative design and product development
• Share product design and development techniques across multiple companies
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Procurement
Create RFQ
Simulate pricing scenario, compare quotations
Create PO from requisition or quotation
- Create reminder periodically, - Update status of purchase requisitions, quotations, and POs
Checking and matching invoices
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Sales Order Management
Pre-sales
Check stock & confirm delivery date
Issue goods delivery note
Transportation planning
Warehouse Management System
Issue invoice Create sales order
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Supply Chain Collaboration
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E-Supply Chains
• Infrastructure for e-SCM– Electronic Data Interchange (EDI)
• Major tool to facilitate supply chain relationship– Extranets
• Support interorganizational communication and collaboration– Intranets– Corporate portals
• Gateway for external and internal collaboration– Workflow systems and tools
• Systems that manage the flow of information in organizations– Groupware and other collaborative tools
• Tools focused on facilitating collaboration and communication between parties
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Roadmap
• E-Supply Chains
• Supply Chain Problems and Solutions
• Collaborative Commerce
• Collaborative Planning and CPFR
• Internal Supply Chain Solutions: Intrabusiness and B2E
• Integration along the Supply Chain
• Collaborate (Enterprise) Portals
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Supply Chain Problems and Solutions
• Typical Problems along the Supply Chain– Supply chains can be very long, involving many internal and
external partners located in different places– Both materials and information must flow among several entities,
and these transfers, especially when manually handled, can be slow and error-prone
– Companies can improve their demand forecasting by using IT-supported forecasts, which are done in collaboration with business
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Supply Chain Problems and Solutions
• Typical Problems along the Supply Chain– A lack of logistics infrastructure causes uncertainties that exist in
delivery times– Pure EC companies are likely to have more supply chain problems
because they do not have a logistics infrastructure and are forced to use external logistics services
– Quality problems with materials and parts can contribute to deficiencies in the supply chain
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Supply Chain Problems and Solutions
• The Need for Information Sharing along the Supply Chain– A supply chain includes the flow of information to and from all
participating entities– Many of supply chain problems are the result of poor flow of
information, inaccurate information, untimely information, and so on.
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Supply Chain Problems and Solutions
• EC Solutions along the Supply Chain– Order taking can be done over the Internet, EDI, EDI/Internet,
or an extranet, and may be fully automated– Order fulfillment can become instant if the products can be
digitized– Electronic payments can expedite both the order fulfillment
cycle and the payment delivery period– Managing risk to avoid supply-chain breakdown– Inventories can be minimized by introducing a build-to-order
(on-demand) manufacturing process as well as by providing fast and accurate information to suppliers
– Collaborative commerce among members of the supply chain can be done in many areas:
• Product design to demand forecasting
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Roadmap
• E-Supply Chains
• Supply Chain Problems and Solutions
• Collaborative Commerce
• Collaborative Planning and CPFR
• Internal Supply Chain Solutions: Intrabusiness and B2E
• Integration along the Supply Chain
• Collaborate (Enterprise) Portals
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Collaborative Commerce
collaborative commerce (c-commerce)The use of digital technologies that enable companies to collaboratively plan, design, develop, manage, and research products, services, and innovative EC applications– Implies communications, information sharing, and collaborative
planning done electronically through tools e.g. groupware– Fewer stockouts, less exception processing, reduced inventory
throughout the supply chain, lower materials costs, increased sales volume, and increased competitive advantage
– Results in cost reduction, increased revenue, and better customer retention
collaboration hubThe 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
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CFPR: Collaboration, Planning, Forecasting, and ReplenishingVMI: Vendor Managed Inventory
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Partners at any point of the network can interact with each other, bypassing traditional partners
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Example of E-Collaboration
Retailer-Supplier Collaboration: Target Corporation– Target needs to conduct activities with more than 20,000 trading
partners.– Target established an extranet-based system with its partners in
1998
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Roadmap
• E-Supply Chains
• Supply Chain Problems and Solutions
• Collaborative Commerce
• Collaborative Planning and CPFR
• Internal Supply Chain Solutions: Intrabusiness and B2E
• Integration along the Supply Chain
• Collaborate (Enterprise) Portals
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CPFR
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
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The process ends with an order forecast
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Benefits of CPFR
• For retailers– Fewer out-of-stocks– Resultant lost sales– Less stored inventory
• For manufacturers– Fewer expedited shipments– Optimal inventory level– Optimally sized production runs
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Roadmap
• E-Supply Chains
• Supply Chain Problems and Solutions
• Collaborative Commerce
• Collaborative Planning and CPFR
• Internal Supply Chain Solutions: Intrabusiness and B2E
• Integration along the Supply Chain
• Collaborate (Enterprise) Portals
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Internal Supply Chain Solutions:Intrabusiness and B2E
• The internal parts of the supply chain are related to the value chain and include:– Inbound logistics– Production processes– Outbound logistics– Marketing and sales– Customer services
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Internal Supply Chain Solutions:Intrabusiness and B2E
intrabusiness EC
E-commerce activities conducted within an organization
• Intrabusiness can be done:1. Between a business and its employees (B2E)
2. Between units within the business
3. Among employees in the same business
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Internal Supply Chain Solutions:Intrabusiness and B2E
business-to-employee (B2E)
Intrabusiness EC in which an organization delivers products or services to its employees
• Some Representative Applications of B2E include:– Providing field representatives and employees in yards,
warehouses, and other non-office places with electronic communication tools
– Training and education provided over intranets– Employee use of desktop purchasing– Employee use of the corporate intranet for both corporate
and personal use to purchase discounted insurance, travel packages, and tickets to events
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Internal Supply Chain Solutions:Intrabusiness and B2E
• Activities between Business Units– Transactions between strategic business units can be easily
automated and performed over the organization’s intranet– E.g. Ford dealership network.
• Activities among Corporate Employees– Many large organizations also provide a system by which
employees can collaborate on an individual (sometimes nonbusiness) level
– E.g. place classified ads for buying or selling personal products, corporate equipments
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Roadmap
• E-Supply Chains• Supply Chain Problems and Solutions• Collaborative Commerce• Collaborative Planning, CPFR, and Collaborative
Design• Internal Supply Chain Solutions: Intrabusiness
and B2E• Integration along the Supply Chain• Collaborate (Enterprise) Portals
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Integration along the Supply Chain
• Enabling Integration– 2 parts of integration: internal integration and integration
with business partners– To ease the task of integration, vendors have developed
integration methodologies and special software called middleware
– In addition, major efforts are being undertaken to develop standards and protocols that will facilitate integration e.g. XML
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Roadmap
• E-Supply Chains• Supply Chain Problems and Solutions• Collaborative Commerce• Collaborative Planning, CPFR, and Collaborative
Design• Internal Supply Chain Solutions: Intrabusiness
and B2E• Integration along the Supply Chain• Collaborate (Enterprise) Portals
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Corporate (Enterprise) Portals
corporate (enterprise) portalA gateway for entering a corporate Web site, enabling communication, collaboration, and access to company information
• Reasons for implementing corporate portals:– To cut costs– To free up time for busy executives and managers– To add to the bottom line
• 2 types of corporate portals: generic portals and functional portals
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Corporate (Enterprise) Portals
• Types of Generic Portals– Portals for suppliers and other partners– Customer portals– Employee portals– Executive and supervisor portals– Mobile portals
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Corporate (Enterprise) Portals
• Functional Portals
information portalsPortals that store data and enable users to navigate and query these data
collaborative portalsPortals that allow collaboration
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Corporate (Enterprise) Portals
• Corporate Portal Applications– Knowledge bases and learning tools– Business process support– Customer-facing (front-line) sales, marketing, and
services – Collaboration and project support– Access to data from disparate corporate systems– Personalized pages for various users
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Corporate (Enterprise) Portals
• Corporate Portal Applications– Effective search and indexing tools– Security applications– Best practices and lessons learned– Directories and bulletin boards– Identification of experts– News– Internet access
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Questions?
Next lecture:Innovative EC Systems:From E-Government and E-Learning to C2C