1 Pertemuan 19 Understanding e-SCM Matakuliah: J0324/Sistem e-Bisnis Tahun: 2005 Versi: 02/02

2 Learning Outcomes Pada akhir pertemuan ini, diharapkan mahasiswa akan mampu : menunjukkan strategi penerapan e-SCM

3 Outline Materi The Basics of e-SCM Internet-Enabled e-SCM Management Issues in e-SCM Evolution of e-SCM

4 Supply Chain Definitions Flow of materials, information, payments, and services, from suppliers through factories and warehouses, to end customers Includes all organizations and processes that create and deliver products, information, and services to the end customers Supply chain management - planning, organizing, coordinating, and controlling all activities in the supply chain

5 Simplified Supply Chain Upstream Internal Downstream Suppliers Organization’s production processes, including materials handling, inventory management, manufacturing, quality control Distributors material information money Retailers Customers material information money

6 Types of Supply Chains Integrated Make-to-Stock –Real-time demand tracking triggers production to restock finished goods Continuous Replenishment –Constant inventory replenishment based on expected stable demand Build-to-Order –Customer order triggers production of specific item(s) requested Channel Assembly –Build-to-order with some assembly performed within the distribution channel

7 Global Supply Chains Many economic factors promote extending the supply chain globally E-commerce enables global supply chains Global supply chains are longer and more complex Use of information technology essential

8 Problems in the Supply Chain How much are we going to sell? (demand forecasts) How long will it take? (for supplies to arrive; shipments to be received) What if the supplies are defective? (quality control) What if my order gets lost or miscommunicated?

9 More Problems in the Supply Chain Bullwhip Effect –Wild swings in orders due to lack of coordination and trust among supply chain members –Information sharing is essential Phantom Stockouts –Inventory is reportedly not available, when in fact it is on hand

10 Overcoming Supply Chain Problems Vertical Integration –Own everything upstream and downstream Stockpile Inventory –Eliminate risk and uncertainty by hoarding massive inventories; very expensive Improve Supply Chain Management –Build trust and coordination through IT enabled supply chain support

11 How IT Supports the Supply Chain Material Requirements Planning (MRP) –Early model that integrated production, purchasing, and inventory management Manufacturing Resource Planning (MRP II) –MRP plus financial and labor planning Enterprise Resource Planning (ERP) –Extension to entire enterprise, plus external business partners In short, Integration is the key

12 How IT Supports the Supply Chain Integrated Value Chain –Multiple enterprises within a shared market channel collaborate throughout the entire shared chain to enhance perceived customer value –Chain members act as an extended enterprise –Benefits to each chain member occur as entire chain is optimised –Idealized goal only achieved in a few cases at present

13 How IT Supports the Supply Chain Enterprise Resource Planning (ERP) Systems –Initially focused on integrating all departments and functions within an organization –Recently have extended to suppliers and customers –Focus was on transaction processing, not decision support and continuous planning

14 How IT Supports the Supply Chain Supply Chain Management (SCM) Software –Standalone software targeting the planning and decision making needed for supply chain management Integrated ERP and SCM –Build linkages between ERP package and SCM package –Extend ERP to incorporate needed SCM functions –Addition of business intelligence (analysis)

15 Extending Supply Chain through e- Commerce Upstream –Change procurement methods Internal –Use of intranet to enhance internal processes Downstream –Alter (streamline) selling practices through direct Web selling, auctions, or exchanges

16 Source : Turban, Efraim, R. Kelly Rainer and Richard E. Potter (2003). Introduction to Information Technology. Second Edition. John Wiley & Sons, Inc. PPT for Chapter : 10