Chapter 6 E-Supply Chains, Collaborative Commerce ISM 41113 M. Fathima Rashida

Learning Objectives Define the e-supply chain and describe its characteristics and components. List supply chain problems and their causes. List solutions provided by e-commerce (EC) for supply chain problems. Describe RFID supply chain applications. Define c-commerce and list the major types. Describe collaborative planning and collaboration, planning, forecasting, and replenishing (CPFR) and list the benefits of each. Discuss integration along the supply chain. Understand corporate portals and their types and roles. Describe e-collaboration tools such as workflow software and groupware. ISM 41113

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 The term supply chain comes from the concept of how partnering organizations linked together ISM 41113

A Simple Supply Chain Suppliers Manufacturers Distributers & Customers Middle / internal  manufacturer Left  suppliers ISM 41113

E-Supply Chains SUPPLY CHAIN PARTS Upstream supply chain Activities of a company with its suppliers and their connections with their suppliers Internal supply chain and value chain Includes all in-house processes used in transforming the inputs received from the suppliers into the organization's output Downstream supply chain Includes all the activities involved in delivering the products to the final customers Upper stream  major process of upper stream is procurement Procurement is the process made up of a range of activities by which an organization obtain or gains access to the resources Internal  the actives along with the internal supply chain are referred as the company’s supply chain  The value chain is composed of a sequential set of primary activities and support activities that an organization undertakes in order to deliver a good or service of value to their customers ISM 41113

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. SCM aims to minimize inventory levels, optimize production and increase throughput, decrease manufacturing time, optimize logistics and distribution, streamline order fulfillment, and overall reduce the costs associated with these activities Information technology provides two types of software solution: SCM (including e-procurement) Enterprise resources planning system (ERP) (including e-business infrastructure, data warehouses) Problem is managing large supply chain manually is almost impossible. ISM 41113

E-Supply Chains E-supply Chain Management (E-SCM) The collaborative use of technology to improve the operations of supply chain activities as well as the management of supply chains E-SCM is not about technology change alone ; it also involves change in management policies, organizational culture, performance metrics, business process, and organizational structure across the supply chain Success of an e-supply chain is depends on followings: The ability of all supply chain partners to view partner collaboration as a strategic assets A well-defined supply chain strategy Information visibility along the entire supply chain Speed, cost, quality and customer service Integrating the supply chain more tightly Companies are recognizing that the efficient and effective flow of information and materials along their supply chains is a source of competitive advantage and differentiation ISM 41113

E-Supply Chains Activities and Infrastructure of e-SCM E-supply chain management process and activities include the following: Supply Chain Replenishment e-procurement Supply Chain Monitoring and Control Using RFID Inventory Management Using Wireless Devices collaborative planning Collaborative Design and Product Development E-Logistics Replenishment  integrated production and distribution processes 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 Inventory management  bar code + wireless devices 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 E-logistics  is the use of web based technologies to support the material acquisition, warehousing, and transportation process ISM 41113

E-Supply Chains Infrastructure for e-SCM EDI Extranets Intranets Corporate portal Workflow systems and tools Groupware and other collaborative tools Identification and tracking tools EDI  internet based EDI ISM 41113

Supply Chain Problems and Solutions TYPICAL PROBLEMS ALONG THE SUPPLY CHAIN bullwhip effect Erratic shifts in order up and down supply chains Need for information sharing along the supply chain EC SOLUTIONS ALONG THE SUPPLY CHAIN Visibility Order taking through internet Order fulfillment electronic payments Managing risk Inventories can be minimized Collaborative commerce Bullwhip  product lay on different location, need to collect and again deliver ISM 41113

RFID as a Key Enabler in Supply Chain Management Radio Frequency Identification (RFID) Tags that can be attached to or embedded in objects, animals, or humans and use 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 ISM 41113

RFID at Wal-Mart and Its Suppliers: The Seven-Step Process ISM 41113

Digital Supply Chains ISM 41113

RFID as a Key Enabler in Supply Chain Management LIMITATIONS OF RFID Cost Interference and accuracy Limited range in passive RFID Environment restrictions on usage Privacy CONCERNS OF RFID Following are some concerns regarding customer privacy and RFID tags: the customer buying an item with an RFID tag may not be able to remove the tag or may unaware that an RFID tag is attached t the item The presence of a tag might mean that it would still be capable of being read from some distance away without the knowledge of the purchaser or user of that item If a purchase is made using a credit card, then the potential exists for the tag details to be linked directly to the personal details of the credit card holder ISM 41113

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 Collaboration Hub (C-hub) One of the most popular forms of c-commerce is the collaboration hubs 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 ISM 41113

Elements and Process of C-Commerce Systems ISM 41113

Comparing the Traditional Collaborative Supply Chain and Collaborative Networks ISM 41113

Supply Chain in Collaborative Networks ISM 41113

Collaborative Commerce Examples of E-Collaboration vendor-managed inventory (VMI) 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. Lower  collective information for each area for delivery Clarion  worked with IBM to produced car audio system, by using IT it get real time responses from supervisor from IBM Caterpilar  used e-collaboration with its customers to produce customizedproducts ISM 41113

Collaborative Planning, CPFR, APS, and PLM 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 The goal of CPFR is to streamline product flow from manufacturing plants all the way to customer’ home ISM 41113

CPFR Model ISM 41113

Collaborative Planning, CPFR, APS, and PLM… Advanced Planning And Scheduling (APS) systems Programs that use algorithms (such as linear programming) to identify optimal solutions to complex planning problems that are bound by constraints such as limited machine capacity or labor Product Lifecycle Management (PLM) Business strategy that enables manufacturers to control and share product related data as part of product design and development efforts and support of supply chain ISM 41113

Components of Collaborative Fulfillment and APS ISM 41113

Supply Chain Integration HOW INFORMATION SYSTEMS ARE INTEGRATED Integration divided into two parts: Internal integration External / with business partners integration Web Services An architecture enabling assembly of distributed applications from software services and tying them together ISM 41113

Corporate (Enterprise) Portals A gateway for entering a corporate Web site, enabling communication, collaboration, and access to company information Corporate portals provide a single point of access to information and application available on the intranets and extranets of a specific organization ISM 41113

Corporate Portal as a Gateway to Information ISM 41113

Corporate (Enterprise) Portals… TYPES OF (GENERIC) CORPORATE PORTALS Portals for Suppliers and Other Partners Customer Portals Employee Portals Executive and Supervisor Portals mobile portals ISM 41113

Corporate (Enterprise) Portals… The Functionalities of Portals from Information Portals Portals that store data and enable users to navigate and query the data to collaborative portals Portals that allow collaboration ISM 41113

Corporate (Enterprise) Portals… CORPORATE PORTAL APPLICATIONS AND ISSUES Top portal applications are: Knowledge bases and learning tools Business process support Customer facing sales Marketing Services Collaboration and project support Access to data from disparate corporate system Personalized pages for various users Effective search and indexing tools Security applications Best practices and leesons learned Directories and bulleting boards Identification of experts News Internet access ISM 41113

Corporate Portal Framework ISM 41113

Collaboration-Enabling Environments And Tools Workflow The movement of information as it flows through the sequence of steps that make up an organization’s work procedures Workflow Systems Business process automation tools that place system controls in the hands of user departments to automate information processing tasks Workflow Management The 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 ISM 41113

Collaboration-Enabling Environments And Tools… COLLABORATION AND GROUPWARE: SOME BASIC CONCEPTS Groupware Software products that support groups of people who share common tasks or goals and collaborate on their accomplishment Virtual Team A group of employees using information and communications technologies to collaborate from different work bases Mass Collaboration Mass collaboration is a form of collaboration action that occurs when large number of people work independently on a single project, often modular in its nature. ISM 41113

Collaboration-Enabling Environments And Tools… ELECTRONIC MEETING SYSTEMS: FACE-TO-FACE SUPPORT AND VIRTUAL MEETINGS Virtual Meetings Online meetings whose members are in different locations, even in different countries Group Decision Support System (GDSS) An interactive computer-based system that facilitates the solution of semi structured and unstructured problems by a group of decision makers Decision Theater Decision theater  screen for reasearchers to identify variables with other researchers' help ISM 41113

Collaboration-Enabling Environments And Tools… REAL-TIME COLLABORATION TOOLS FOR VIRTUAL MEETINGS Screen-sharing Software Software 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 ISM 41113

Collaboration-Enabling Environments And Tools… ELECTRONIC TELECONFERENCING Teleconferencing The use of electronic communication that allows two or more people at different locations to have a simultaneous conference Video Teleconference Virtual meeting in which participants in one location can see participants at other locations on a large screen or a desktop computer Data Conferencing Virtual meeting in which geographically dispersed groups work on documents together and exchange computer files during videoconferences Web Conferencing ISM 41113

Collaboration-Enabling Environments And Tools… The 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 The major technologies used in Collaboration 2.0 follow: Collaborative Workspace An interconnected environment in which all the participants in dispersed locations can access and interact with each other just as inside a single entity Instant Messaging Technologies that create the possibility of real-time text-based communication between two or more participants over the Internet/intranet ISM 41113

Collaboration-Enabling Environments And Tools… Presence Information Status indicator that conveys ability and willingness of a potential communication partner voice-over-IP (VoIP) Communication systems that transmit voice calls over Internet Protocol–based networks Blogs, Wikis, Virtual Worlds, Forums, and Other Tools ISM 41113