1. 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

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

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

4. 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

5. 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

6. 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

7. 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

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

9. 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

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

11. 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

12. 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

13. 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

14. 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

15. 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