1. Supply Chain Management
Presented by Ika Novita Dewi, MCS

2. Supply chain management is essentially the optimization of material flows and associated information flows involved with an organization’s operations

3. Problems of supply chain management
Problem of supply chain management
How e-business technology can reduce problems in SCM
Pressure to reduce costs of manufacturing and distributing products in order to remain competitive
Reduction in paperwork through electronic transmission of orders, invoices and delivery notes.
Reduced inventory holdings needed through better understanding of demand.
Demand forecasting
Sharing of demand by customers with suppliers as part of efficient consumer response (ECR)
Failure to deliver products on time consistently or lack of items on shelf in retailer
Supplier becomes responsible for item availability through vendor-managed inventory

4. Upstream supply chain
Transactions between an organization and its suppliers and intermediaries, equivalent to buy-side e-commerce.
Downstream supply chain
Transactions between an organization and its customers and intermediaries, equivalent to sell-side e-commerce

5. Upstream supply chain – The B2B Company
Downstream supply chain – The B2B Company

6. Logistic
Logistics is a concept closely related to supply chain management.
Inbound logistics
The management of material resources entering an organization from its suppliers and other partners.
Outbound logistics
The management of resources supplied from an organization to its customers and intermediaries such as retailers and distributors.

7. Benefits of e-supply chain management
Reduce order-to-delivery time
Reduce costs of manufacturing
Manage inventory more effectively
Improve demand forecasting
Reduce time to introduce new products
Improve after-market/post-sales operations

8. PORTER’S COMPETITIVE FORCES MODEL

9. The strategic position of the firm and its strategies are determined not only by competition with its traditional direct competitors but also by four other forces in the industry’s environment: new market entrants, substitute products, customers, and suppliers

10. New Market Entrants
New companies are always entering the marketplace
In some industries, there are very low barriers to entry, whereas in other industries, entry is very difficult
Example:
It is fairly easy to start a pizza business (any small retail business)
It is much more expensive and difficult to enter the computer chip business

11. Substitute Products and Services
The more substitute products and services in your industry, the less you can control pricing and the lower your profit margins
Internet telephone service can substitute for traditional telephone service, and fiber-optic telephone lines to the home can substitute for cable TV lines

12. Customers
The power of customers grows
easily switch to a competitor’s products and services
force a business and its competitors to compete on price alone in a transparent marketplace
where there is little product differentiation, and all prices are known instantly (such as on the Internet)

13. Suppliers
The more different suppliers a firm has, the greater control it can exercise over suppliers in terms of price, quality, and delivery schedules

14. Peningkatan keunggulan kompetitif dengan Strategi Sistem Informasi
Low-Cost Leadership
Use information systems to achieve the lowest operational costs and the lowest prices
Product Differentiation
Use information systems to enable new products and services, or greatly change the customer convenience in using your existing products and services
Focus on Market Niche
Use information systems to enable a specific market focus, and serve this narrow target market better than competitors
Strengthen Customer and Supplier Intimacy
Strong linkages to customers and suppliers increase switching costs (the cost of switching from one product to a competing product), and loyalty to your firm

15. Although the Porter model is very helpful for identifying competitive forces and suggesting generic strategies, it is not very specific about what exactly to do, and it does not provide a methodology to follow for achieving competitive advantage

16. Business Value chain model
This model identifies specific, critical leverage points where a firm can use information technology most effectively to enhance its competitive position
These activities can be categorized as either primary activities or support activities

17. Rantai Nilai Industri Administrasi dan manajemen
Sistem penjadwaln dan pesan elektronik
Sumber daya manusia
Sistem perencanaan angkatan kerja
Aktivitas pendukung
Teknologi
Sistem berbasiskan komputer
Rantai
nilai perusahaan
Pengadaan
Sistem pemesanan terkomputerisasi
Logistik Masuk
Sist. Penggudangan otomatis
Operasi
Sist. Penggudangan otomatis
Penjualan dan Pemasaran
Sist. Pemesanan terkomputeri-sasi
Layanan
Sist. Pemeliharaan peralatan
Logistik keluar
Sist. Penjadwalan pengiriman otomatis
Aktivitas Utama
Sistem Pengadaan dan sumber daya
Sistem Manejemen hubungan pelanggan
Pemasok dari pemasok
Pemasok
Perusahaan
Penyalur
Pelanggan
Rantai Nilai Industri

18. Options for restructuring the supply chain
As part of strategy definition for e-business, managers will consider how the structure of the supply chain can be modified.
These choices are not primarily based on Internet technology choices, rather they are mainly choices that have existed for many years.
What Internet technology provides is a more efficient enabler and lower-cost communications within the new structures

19. Vertical integration The extent to which supply chain activities are undertaken and controlled within the organization
Virtual integration The majority of supply chain activities are undertaken and controlled outside the organization by third parties

20. Exercise - Supply chain models in personal computer manufacture
Activity : 1. Review the approaches of the two companies illustrated below. Which tends to vertical integration and which tends to virtual integration? 2. Produce a table summarizing the benefits and disadvantages of each approach. Which do you think is the better approach? 3. How can information systems facilitate each approach?

21. Approach 1 - IBM during the 1980s and early 1990s
Manufacture of many components by IBM plants in different locations including IBM processors, IBM hard disks, IBM cases and IBM monitors and even IBM mice. Distribution to companies by IBM logistics.
Approach 2 Dell during the 1990s and 2000s
Manufacture of all components by third parties in different locations including Intel processors, Seagate hard disks, Sony monitors and Microsoft mice. Assembly of some components in final product by third parties, e.g. adding appropriate monitor to system unit for each order.