1. Chapter 7 E-Supply Chains, Collaborative Commerce, Intrabusiness EC, and Corporate Portals

2. ITEC5611S. Kungpisdan 2 Roadmap E-Supply Chains Supply Chain Problems and Solutions Collaborative Commerce Collaborative Planning and CPFR Internal Supply Chain Solutions: Intrabusiness and B2E Integration along the Supply Chain Collaborate (Enterprise) Portals

3. ITEC5611S. Kungpisdan 3 E-Supply Chains Definitions and Concepts supply chain The flow of materials, information, money, and services from raw material suppliers through factories and warehouses to the end customers e-supply chain A supply chain that is managed electronically, usually with Web technologies

4. ITEC5611S. Kungpisdan 4 Procurement Value chain Distribution, Warehousing, Transportation, After-sale service

5. ITEC5611S. Kungpisdan 5 E-Supply Chains Managing Supply Chains –Managing supply chains can be difficult due to the need to coordinate: Several business partners Several internal corporate departments Numerous business processes Possibly many customers –Information technology provides two types of software solutions: 1.SCM 2.ERP

6. ITEC5611S. Kungpisdan 6 E-Supply Chains e-supply chain management (e-SCM) The collaborative use of technology to enhance B2B processes and improve the operations of supply chain activities as well as the management of supply chains Speed, agility, real-time control, and customer satisfaction –The success of an e-supply chain depends on: The ability of all supply chain partners to view partner collaboration as a strategic asset Information visibility along the entire supply chain Speed, cost, quality, and customer service –Measure them with the target levels to be achieved Integrating the supply chain more tightly

7. ITEC5611S. Kungpisdan 7 mySAP SCM Overview PP/DS: Production Planning/Detailed Scheduling

8. ITEC5611S. Kungpisdan 8 E-Supply Chains Activities and Infrastructure of e-SCM –Supply chain replenishment Integrate production and distribution processes Use information to reduce inventories, eliminate stock points, support make-to-order manufacturing strategies –E-procurement –Supply chain monitoring and control using RFID –E-logistics Web-based tech to support material acquisition, warehousing, and transportation processes –Collaborative planning Buyers and sellers to develop shared demand forecasts and supply plans for how to support demand –Collaborative design and product development Share product design and development techniques across multiple companies

9. ITEC5611S. Kungpisdan 9 Procurement Create RFQ Simulate pricing scenario, compare quotations Create PO from requisition or quotation - Create reminder periodically, - Update status of purchase requisitions, quotations, and POs Checking and matching invoices

10. ITEC5611S. Kungpisdan 10 Sales Order Management Pre-sales Check stock & confirm delivery date Issue goods delivery note Transportation planning Warehouse Management System Issue invoice Create sales order

11. ITEC5611S. Kungpisdan 11 Supply Chain Collaboration

12. ITEC5611S. Kungpisdan 12 E-Supply Chains Infrastructure for e-SCM –Electronic Data Interchange (EDI) Major tool to facilitate supply chain relationship –Extranets Support interorganizational communication and collaboration –Intranets –Corporate portals Gateway for external and internal collaboration –Workflow systems and tools Systems that manage the flow of information in organizations –Groupware and other collaborative tools Tools focused on facilitating collaboration and communication between parties

13. ITEC5611S. Kungpisdan 13 Roadmap E-Supply Chains Supply Chain Problems and Solutions Collaborative Commerce Collaborative Planning and CPFR Internal Supply Chain Solutions: Intrabusiness and B2E Integration along the Supply Chain Collaborate (Enterprise) Portals

14. ITEC5611S. Kungpisdan 14 Supply Chain Problems and Solutions Typical Problems along the Supply Chain –Supply chains can be very long, involving many internal and external partners located in different places –Both materials and information must flow among several entities, and these transfers, especially when manually handled, can be slow and error-prone –Companies can improve their demand forecasting by using IT- supported forecasts, which are done in collaboration with business

15. ITEC5611S. Kungpisdan 15 Supply Chain Problems and Solutions Typical Problems along the Supply Chain –A lack of logistics infrastructure causes uncertainties that exist in delivery times –Pure EC companies are likely to have more supply chain problems because they do not have a logistics infrastructure and are forced to use external logistics services –Quality problems with materials and parts can contribute to deficiencies in the supply chain

16. ITEC5611S. Kungpisdan 16 Supply Chain Problems and Solutions The Need for Information Sharing along the Supply Chain –A supply chain includes the flow of information to and from all participating entities –Many of supply chain problems are the result of poor flow of information, inaccurate information, untimely information, and so on.

17. ITEC5611S. Kungpisdan 17 Supply Chain Problems and Solutions EC Solutions along the Supply Chain –Order taking can be done over the Internet, EDI, EDI/Internet, or an extranet, and may be fully automated –Order fulfillment can become instant if the products can be digitized –Electronic payments can expedite both the order fulfillment cycle and the payment delivery period –Managing risk to avoid supply-chain breakdown –Inventories can be minimized by introducing a build-to-order (on-demand) manufacturing process as well as by providing fast and accurate information to suppliers –Collaborative commerce among members of the supply chain can be done in many areas: Product design to demand forecasting

18. ITEC5611S. Kungpisdan 18 Roadmap E-Supply Chains Supply Chain Problems and Solutions Collaborative Commerce Collaborative Planning and CPFR Internal Supply Chain Solutions: Intrabusiness and B2E Integration along the Supply Chain Collaborate (Enterprise) Portals

19. ITEC5611S. Kungpisdan 19 Collaborative Commerce collaborative commerce (c-commerce) The use of digital technologies that enable companies to collaboratively plan, design, develop, manage, and research products, services, and innovative EC applications –Implies communications, information sharing, and collaborative planning done electronically through tools e.g. groupware –Fewer stockouts, less exception processing, reduced inventory throughout the supply chain, lower materials costs, increased sales volume, and increased competitive advantage –Results in cost reduction, increased revenue, and better customer retention collaboration hub The central point of control for an e-market. A single c-hub, representing one e-market owner, can host multiple collaboration spaces (c-spaces) in which trading partners use c- enablers to exchange data with the c-hub

20. ITEC5611S. Kungpisdan 20 CFPR: Collaboration, Planning, Forecasting, and Replenishing VMI: Vendor Managed Inventory

21. ITEC5611S. Kungpisdan 21 Partners at any point of the network can interact with each other, bypassing traditional partners

22. ITEC5611S. Kungpisdan 22 Example of E-Collaboration Retailer-Supplier Collaboration: Target Corporation –Target needs to conduct activities with more than 20,000 trading partners. –Target established an extranet-based system with its partners in 1998

23. ITEC5611S. Kungpisdan 23

24. ITEC5611S. Kungpisdan 24 Roadmap E-Supply Chains Supply Chain Problems and Solutions Collaborative Commerce Collaborative Planning and CPFR Internal Supply Chain Solutions: Intrabusiness and B2E Integration along the Supply Chain Collaborate (Enterprise) Portals

25. ITEC5611S. Kungpisdan 25

26. ITEC5611S. Kungpisdan 26 CPFR Collaborative planning, forecasting, and replenishment (CPFR) Project in which suppliers and retailers collaborate in their planning and demand forecasting to optimize flow of materials along the supply chain

27. ITEC5611S. Kungpisdan 27 The process ends with an order forecast

28. ITEC5611S. Kungpisdan 28 Benefits of CPFR For retailers –Fewer out-of-stocks –Resultant lost sales –Less stored inventory For manufacturers –Fewer expedited shipments –Optimal inventory level –Optimally sized production runs

29. ITEC5611S. Kungpisdan 29 Roadmap E-Supply Chains Supply Chain Problems and Solutions Collaborative Commerce Collaborative Planning and CPFR Internal Supply Chain Solutions: Intrabusiness and B2E Integration along the Supply Chain Collaborate (Enterprise) Portals

30. ITEC5611S. Kungpisdan 30 Internal Supply Chain Solutions: Intrabusiness and B2E The internal parts of the supply chain are related to the value chain and include: –Inbound logistics –Production processes –Outbound logistics –Marketing and sales –Customer services

31. ITEC5611S. Kungpisdan 31 Internal Supply Chain Solutions: Intrabusiness and B2E intrabusiness EC E-commerce activities conducted within an organization Intrabusiness can be done: 1.Between a business and its employees (B2E) 2.Between units within the business 3.Among employees in the same business

32. ITEC5611S. Kungpisdan 32 Internal Supply Chain Solutions: Intrabusiness and B2E business-to-employee (B2E) Intrabusiness EC in which an organization delivers products or services to its employees Some Representative Applications of B2E include: –Providing field representatives and employees in yards, warehouses, and other non-office places with electronic communication tools –Training and education provided over intranets –Employee use of desktop purchasing –Employee use of the corporate intranet for both corporate and personal use to purchase discounted insurance, travel packages, and tickets to events

33. ITEC5611S. Kungpisdan 33 Internal Supply Chain Solutions: Intrabusiness and B2E Activities between Business Units –Transactions between strategic business units can be easily automated and performed over the organization’s intranet –E.g. Ford dealership network. Activities among Corporate Employees –Many large organizations also provide a system by which employees can collaborate on an individual (sometimes nonbusiness) level –E.g. place classified ads for buying or selling personal products, corporate equipments

34. ITEC5611S. Kungpisdan 34 Roadmap E-Supply Chains Supply Chain Problems and Solutions Collaborative Commerce Collaborative Planning, CPFR, and Collaborative Design Internal Supply Chain Solutions: Intrabusiness and B2E Integration along the Supply Chain Collaborate (Enterprise) Portals

35. ITEC5611S. Kungpisdan 35 Integration along the Supply Chain Enabling Integration –2 parts of integration: internal integration and integration with business partners –To ease the task of integration, vendors have developed integration methodologies and special software called middleware –In addition, major efforts are being undertaken to develop standards and protocols that will facilitate integration e.g. XML

36. ITEC5611S. Kungpisdan 36 Roadmap E-Supply Chains Supply Chain Problems and Solutions Collaborative Commerce Collaborative Planning, CPFR, and Collaborative Design Internal Supply Chain Solutions: Intrabusiness and B2E Integration along the Supply Chain Collaborate (Enterprise) Portals

37. ITEC5611S. Kungpisdan 37 Corporate (Enterprise) Portals corporate (enterprise) portal A gateway for entering a corporate Web site, enabling communication, collaboration, and access to company information Reasons for implementing corporate portals: –To cut costs –To free up time for busy executives and managers –To add to the bottom line 2 types of corporate portals: generic portals and functional portals

38. ITEC5611S. Kungpisdan 38 Corporate (Enterprise) Portals Types of Generic Portals –Portals for suppliers and other partners –Customer portals –Employee portals –Executive and supervisor portals –Mobile portals

39. ITEC5611S. Kungpisdan 39 Corporate (Enterprise) Portals Functional Portals information portals Portals that store data and enable users to navigate and query these data collaborative portals Portals that allow collaboration

40. ITEC5611S. Kungpisdan 40

41. ITEC5611S. Kungpisdan 41 Corporate (Enterprise) Portals Corporate Portal Applications –Knowledge bases and learning tools –Business process support –Customer-facing (front-line) sales, marketing, and services –Collaboration and project support –Access to data from disparate corporate systems –Personalized pages for various users

42. ITEC5611S. Kungpisdan 42 Corporate (Enterprise) Portals Corporate Portal Applications –Effective search and indexing tools –Security applications –Best practices and lessons learned –Directories and bulletin boards –Identification of experts –News –Internet access

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44. Questions? Next lecture: Innovative EC Systems: From E-Government and E-Learning to C2C