Agenda of Week IX. From Operations Objective : Understanding the main issues and direction in each SCM stage Midterm exam Review of week 8 1 Operations 2 Network cooperation ERP connections Logistics 3 Fundamentals 21 st century Hub Reverse logistics Marketing 4 Tasks Roles E-commerce

Review of Week 8 Purposes : Taking tough midterm exam Tough exam Midterm Exam 3

Operations: Network Cooperation o Shifting on business improvement Working with external partners Alliances with high-technology firms Network communication systems to determine how to satisfy target customers More responsive to target customers Integration of vital information flows across all members of a full SC network I- ERP o Evolution of ERP system

Operations: Network Cooperation o Synchronization Engineering, planning, scheduling, manufacturing, delivery, customer satisfaction Forecasting becomes unimportant Levels Brochure ware Publication and subscription: Communication with customers Ordering: Production concept marketing concept Delivery: Toshiba express part delivery system Community: Collaborative planning, EDI

Operations: ERP Connection o Connection with other e-Business systems within firm Network business systems CRM, SCM, FMS, HRMS, DSS Main connection: ERP CRM Supporting connection: SCM, FMS, HRMS, DSS o Connection with ERPs of key players in SC Through B2B e-Commerce systems Real time update for transactions

Logistics: Fundamentals o No single firm Optimally performing all of procurement, manufacturing, and delivery o A network of response to customers Through both cyber and physical channels with e-Commerce Decision on partners o On-time delivery

Logistics: 21 st Century Logistics o Linkage between demand chain and SC Needs of customers Responses from SC o Logistics evolution Make efficiently push them: Safety stocks Pull-system: Role assignment to SC players Turning over distribution functions Concentration on core competence: TDM Dual channel optimization with e-Commerce

Logistics: Optimization Factors o Key factors Objective: Network optimization Freight cost and service management Fleet management Load planning Routing/Scheduling Warehouse management

Logistics: Hub o A point for consolidating and matching loads for specific destinations Full truck loads Efficient utilization of equipment Synergy between cyber channels and physical channels Main roles

Logistics: Reverse Logistics o Returns management system Increasing percentage of returns in B2C o NetReturn: FedEx IBM o Refurbish system

Marketing: Tasks o Traditional Cultivation and retention of satisfied customers o New Development and retention of the best customers in designated profitable growth markets o Development framework Internally developed promotions Customer-focused, data-based marketing

Marketing: Tasks Collaborative development for focused customers Marketing concept Consumer response system across the SC One-to-one marketing concept o ToysRUs case Loss of much market share Online e-commerce retailer o Customerization

Marketing: New Roles o Objective: Effective sales response o Sales representative A valued external resource for accomplishing interorganizational objectives and jointly developing new business Voice of the customer Initiator of crucial responses and improvement opportunities A person empowered to help network improvement Reduction of cycle response time, costs

Marketing: New Roles A person who becomes intimate with customers o Marketing representative Sensitive to what is happening in the targeted network markets More collaborative planning with the best customers Joint work sessions with customers Development of innovative marketing efforts

Marketing: e-Commerce o Gate for front-office activities Real time communication Transaction processing End-to-End visibility of customer interactions o Customer-Centric business model Customer-Facing areas Customer knowledge management Related information