1. The Role of Mass Customization in Enhancing Supply Chain Relationships in B2C E-Commerce Markets Alex Daza Denise Jeong Jesse Ortega

2. Introduction Supply Chain History Impact of E-Commerce on Supply Chain The role of Information in Supply Chain Mass Customization in B2C Conclusion

3. Definition of Supply Chain Supply Chain is a network of entities through which material flows from suppliers to consumers Total Cost Minimization Total Cost Minimization Several layers of intermediaries involved Several layers of intermediaries involved Linear distribution channel Linear distribution channel Consist of three dimensions Consist of three dimensions

4. History of Supply Chain Industrial Era Supply Chain was vertically integrated Supply Chain was vertically integrated Transport was heavily regulated. Transport was heavily regulated. Minimization of Total Cost Minimization of Total Cost1970’s Changed focus to core competencies Changed focus to core competencies Deregulation of transportation Deregulation of transportation Outsourcing of supply functions and distribution channels Outsourcing of supply functions and distribution channels 3 rd ERA Transition ongoing in Supply Chain Management Transition ongoing in Supply Chain Management Integration of information flows (Supplier’s Suppliers) Integration of information flows (Supplier’s Suppliers)

5. Role of E-Commerce Reductions of layers of intermediaries Mass Customization in digital and physical goods New functional relationships Demand forecast and inventory mgmt functions influenced VMI Removal of constraints relating to geography, time and space

6. Third Party Payments Third Party Logistics Vortals Auctions E-Procurement Money Exchange Goods ExchangeInformation Exchange Three Dimensions of SCM Traditional Processes

7. Role of E-Commerce…….cont.. Information sharing between supply chain partners Ability to track inventory anywhere, anytime Reduced business cycles Positive impact on the economy

8. Cost Savings in E-Commerce Direct selling to end consumer reduces the price of a good Seller can modify purchase to meet buyers needs completely Reduction of transactions Digital good eliminates traditional intermediaries Change from build-to-stock to build-to-order Better communication lead to better inventory mgmt and production planning

9. Mass Customization in B2C New electronic market models (market spaces) This intermediation has created new direct channel opportunities (Dell, Amazon) Significant cost savings have been realized throughout the SCM Production equals consumer needs completely Bypassing of traditional intermediaries Exact information available to final consumer

10. SupplierProducerWholesalerRetailerConsumer RetailerWholesalerProducerSupplier Traditional Supply Chain Disintermediation in Supply Chain Legend Hard Good Flow Information Flow

11. Summary Traditional Supply Chain Electronic E-Commerce Mass Customization Information Exchange Cost Savings Transformation in Supply Chain Positive Macro-Economic Impact