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E-Supply Chains, Collaborative Commerce, Intrabusiness EC,
and Corporate Portals
Lecture 6
Supakorn Kungpisdan
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Outline
• E-Supply Chains• Supply Chain Problems and Solutions• Collaborative Commerce and Collaborative
Planning• Internal Supply Chain Solutions: Intrabusiness
and B2E• Integration along the Supply Chain• Collaborate (Enterprise) Portals
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E-Supply Chains
• 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
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Procurement
Value chain
Distribution,Warehousing,Transportation,After-sale service
7-5
The Value Chain –Internally Focused
Used to identify the flow of information through a set of business activities. It identifies two types of activities, primary and support
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E-Supply Chains (cont.)
• 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:
• SCM • ERP
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E-Supply Chain Management
• 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
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mySAP SCM Overview
PP/DS: Production Planning/Detailed Scheduling
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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
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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
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Sales Order ManagementPre-sales
Check stock & confirm delivery date
Issue goods delivery note
Transportation planning
Warehouse Management System
Issue invoice Create sales order
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Supply Chain Collaboration
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Infrastructure for e-SCM
• 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
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Supply Chain Problems
• 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
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Supply Chain Problems (cont.)
• 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
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Supply Chain Problems (cont.)
• 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.
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• 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
• Inventories can be minimized by introducing a built-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:– From product design to demand forecasting
EC Solutions along the Supply Chain
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Collaborative 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
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Collaborative Commerce (cont.)
• 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
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CFPR: Collaborative Planning, Forecasting, and ReplenishingVMI: Vendor Managed Inventory
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Partners at any point of the network can interact with each other, bypassing traditional partners
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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
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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
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The process ends with an order forecast
CPFR Process
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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
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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
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• 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
Intrabusiness EC
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B2E E-Commerce
• 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
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B2E E-Commerce (cont.)
• 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 non-business) level
– E.g. place classified ads for buying or selling personal products, corporate equipments
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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
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Corporate (Enterprise) Portals
• 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 – Functional portals
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Generic Portals
• Portals for suppliers and other partners• Customer portals• Employee portals• Executive and supervisor portals• Mobile portals
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Functional Portals
• information portals– Portals that store data and enable users to navigate
and query these data
• collaborative portals– Portals that allow collaboration
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Corporate Portal Applications
• Knowledge bases and learning tools• Business process support• Customer-facing (front-line) sales, marketing, and
services • Collaboration and project support• Personalized pages for various users
• Effective search and indexing tools• Security applications• Best practices and lessons learned• Directories and bulletin boards• News
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Questions?