1. E-commerce COM380 E-commerce Lecture 5 Supply chain management and E-procurement

2. E-commerce COM380 E-commerce Objectives By the end of the lecture students should: –Appreciate the main elements of supply chain management –Appreciate the potential of information systems to support supply and value chain management –Appreciate the benefits and risks of e-procurement –Appreciate the integration options with IS and e- procurement suppliers

3. E-commerce COM380 E-commerce Supply chain management What is it? Options

4. E-commerce COM380 E-commerce Supply chain management Internal value chain External value chain

5. E-commerce COM380 E-commerce Logistics Inbound logistics Outbound logistics

6. E-commerce COM380 E-commerce Supply chain models Push supply chain Pull supply chain

7. E-commerce COM380 E-commerce Value chain Within each element At interface between elements

8. E-commerce COM380 E-commerce Internal value chain weakness Applicable to manufacturing One-way chain No emphasis on importance of networks

9. E-commerce COM380 E-commerce Value stream Problem solving task Information management task Physical transformation task

10. E-commerce COM380 E-commerce Value chain analysis Five step analysis

11. E-commerce COM380 E-commerce Value networks Supply-side partners Partners filling core value chain activities Sell-side partners Value chain integrators

12. E-commerce COM380 E-commerce Value networks Electronic interconnections Dynamic nature of network Varied partner links

13. E-commerce COM380 E-commerce Virtual organisation Processes transcend boundaries Production processes flexible Geographical dispersal Telecommunications

14. E-commerce COM380 E-commerce Restructuring the supply chain Vertical integration Virtual integration

15. E-commerce COM380 E-commerce Restructuring the supply chain Increased efficiency Reduced complexity Improved data integration Reduced cost Innovation

16. E-commerce COM380 E-commerce IS supported supply chain Upstream supply chain management Downstream supply chain management Outbound logistics management

17. E-commerce COM380 E-commerce IS infrastructure Supply chain visibility Managing the supply chain

18. E-commerce COM380 E-commerce SCM strategy process Managing partnerships Managing global distribution

19. E-commerce COM380 E-commerce Managing global distribution Select distributors Select distributors capable of developing markets Treat local distributors as long-term partners

20. E-commerce COM380 E-commerce Managing global distribution Support market entry Control marketing strategy Obtain detailed data from distributors Build links

21. E-commerce COM380 E-commerce E-procurement What is it?

22. E-commerce COM380 E-commerce E-procurement At the right price Delivery at the right time Are of the right quality Of the right quantity From the right source

23. E-commerce COM380 E-commerce Types of procurement (what is bought) Production-related procurement Non-production-related procurement MRO goods

24. E-commerce COM380 E-commerce Types of procurement (how it is bought) Systematic sourcing Spot sourcing

25. E-commerce COM380 E-commerce E-procurement Drivers Reduced purchasing cycle time and cost Enhanced budgetary control Elimination of administrative errors

26. E-commerce COM380 E-commerce E-procurement Aims Increasing buyers’ productivity Lowering prices Improving information management Improving the payment process

27. E-commerce COM380 E-commerce E-procurement outcomes Cost savings Impact on profitability Risks and impacts Technology risks

28. E-commerce COM380 E-commerce E-procurement Implementation System integration

29. E-commerce COM380 E-commerce E-procurement Electronic B2B marketplaces Types of marketplace –Systematic sourcing –Spot sourcing –Metamediaries

30. E-commerce COM380 E-commerce E-procurement Automated E-purchasing Software agents

31. E-commerce COM380 E-commerce Objectives –Appreciate the main elements of supply chain management –Appreciate the potential of information systems to support supply and value chain management –Appreciate the benefits and risks of e- procurement –Appreciate the integration options with IS and e-procurement suppliers