ESupply Chains Collaborative Commerce And Corporate Portals Chapter

E-Supply Chains, Collaborative Commerce, And Corporate Portals Chapter 3 Based on electronic commerce by Turban- Ch 6

Learning Objectives 1. Define the e-supply chain and describe its characteristics and components. 2. List supply chain problems and their causes. 3. List solutions provided by e-commerce (EC) for supply chain problems. 4. Describe RFID supply chain applications. Management of E-commerce 6 -1

Learning Objectives 6. Describe collaborative planning and collaboration, planning, forecasting, and replenishing (CPFR) and list the benefits of each. 7. Discuss integration along the supply chain. 8. Understand corporate portals and their types and roles. 9. Describe e-collaboration tools such as workflow software and groupware. 10. Describe Collaboration 2. 0 technology and tools. Management of E-commerce 6 -2

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 Management of E-commerce 6 -3

E-Supply Chains: Components • SUPPLY CHAIN PARTS 1. Upstream supply chain 2. Internal supply chain and value chain 3. Do Suppliers downstream supply chain Internal upstream Suppliers downstream Manufacturer Management of E-commerce Costumers 6 -4

Upstream supply chain • The processes that occur before manufacturing or conversion into a deliverable product or service. • Procurement – The process made up of a range of activities by which an organization obtains or gains access to the resources they require to undertake their core business activities. Management of E-commerce 6 -5

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Internal supply chain PURCHASE SUPPLY CHAIN SALES SUPPLY CHAIN Purchase Order Sales Order Receiving Picking Quality Assurance Inspection Packing Inventory Invoicing (Accounts Receivable) Manufacturing Sales Commissions Invoicing (Accounts Payable) Returns Processing Management of E-commerce 6 -7

Downstream supply chain • The processes in a supply chain that occur after manufacturing or conversion that are dedicated to getting goods and services to customers and consumers. • Warehousing • Logistics • Distribution – Business customers – End users Management of E-commerce 6 -8

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E-Supply Chains • Supply chain management (SCM) A complex process that requires the coordination of many activities so that the shipment of goods and services from supplier right through to customer is done efficiently and effectively for all parties concerned. Management of E-commerce 6 -11

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E-Supply Chains SCM aims to: 1. Minimize inventory levels. 2. Optimize production and increase throughput. 3. Decrease manufacturing time. 4. Optimize logistics and distribution, streamline order fulfillment. 5. Reduce the costs associated with these activities Management of E-commerce 6 -13

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E-Supply Chains • e-SCM (e-supply chain management ) The collaborative use of technology to improve the operations of supply chain activities as well as the management of supply chains. Along the supply chain we need : – Information visibility The process of sharing critical data required to manage the flow of products, services, and information in real time between suppliers and customers Visibility and tracking are important so that there will not be any surprises related to order quantity or delivery terms. Various systems and databases track production and distribution so that any needed adjustments can be made Management of E-commerce 6 -15

e-SCM Infrastructure – Electronic Data Interchange (EDI) – Extranets – Intranets – Corporate portals – Workflow systems and tools – Groupware and other collaborative tools Management of E-commerce 6 -16

Activities of e-SCM 1. 2. 3. 4. 5. 6. E-procurement E-Logistics Supply Chain Replenishment Supply Chain Monitoring and Control Using RFID Inventory Management Using Wireless Devices Collaborative Design and Product Development • We will talk about some of the above Management of E-commerce 6 -17

E-Supply Chains: 1 -E-procurement • • • The use of Web-based technology to support the key procurement processes, including: requisitioning, sourcing, contracting, ordering, and payment. E-procurement supports the purchase of both direct and indirect materials and employs several Web-based functions such as online catalogs, contracts, purchase orders, and shipping notices Management of E-commerce 6 -18

2 - RFID as a Key Enabler in Supply Chain Management • RFID (Radio Frequency identification ) • Tags that can be attached to or embedded in objects, animals, or humans • Uses radio waves to communicate with a reader for the purpose of uniquely identifying the object or transmitting data and/or storing information about the object RFID tags can be attached to products to more carefully monitor their location for inventory purposes. Suppliers attach RFID tags so retailers can track shipment and receiving. Active tags include an internal power supply while passive tags do not. Management of E-commerce 6 -19

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CPFR : Collaborative planning, forecasting, and replenishment VMI: Vendor Managed Inventory Management of E-commerce 6 -21

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RFID as a Key Enabler in Supply Chain Management • LIMITATIONS AND CONCERNS OF RFID – – – Cost Interference and accuracy Limited range in passive RFID Environment restrictions on usage Privacy • RUBEE: AN ALTERNATIVE TO RFID? – Ru. Bee Bidirectional, on-demand, peer-to-peer radiating transceiver protocol under development by the Institute of Electrical and Electronics Engineers Management of E-commerce 6 -23

Supply Chain Problems and Solutions • TYPICAL PROBLEMS ALONG THE SUPPLY CHAIN Missed deliveries Improper inventories and quality problems Bullwhip effect The bullwhip effect is when large fluctuations in inventories along the supply chain occur, resulting from small fluctuations in demand for finished products OR – ERRATIC shifts in order up and down supply chains – Solution : – Need for information sharing along the supply chain – – Management of E-commerce 6 -24

Supply Chain Problems and Solutions • EC SOLUTIONS ALONG THE SUPPLY CHAIN – Visibility The knowledge about where materials and parts are at any given time, which helps in solving problems such as delay, combining shipments, and more Management of E-commerce 6 -25

Collaborative Commerce • c-commerce (Collaborative commerce ) • The use of digital technologies that enable companies to collaboratively plan, design, develop, manage, and research products, services, and innovative EC applications • c-hub (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 Management of E-commerce 6 -26

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Collaborative Commerce • VMI (vendor-managed inventory ) • The practice of retailers’ making suppliers responsible for determining when to order and how much to order • Retailer–Supplier Collaboration: Target Corporation • Lower Transportation and Inventory Costs and Reduced Stock-Outs: Unilever • Reduction of Design Cycle Time: Clarion Malaysia • Reduction of Product Development Time: Caterpillar, Inc. Management of E-commerce 6 -30

Collaborative Commerce • BARRIERS TO C-COMMERCE • A lack of internal integration, standards, and networks • Security and privacy concerns, and distrust over who has access to and control of information stored in a partner’s database • Internal resistance to information sharing and to new approaches • A lack of internal skills to conduct c-commerce Management of E-commerce 6 -31

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Collaborative Planning: CPFR, APS, and PLM • Collaborative planning – A business practice that combines the business knowledge and forecasts of multiple players along a supply chain to improve the planning and fulfillment of customer demand • 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 Management of E-commerce 6 -33

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Collaborative Planning, CPFR, APS, and PLM • APS systems (Advanced planning and scheduling ) Programs that use algorithms to identify optimal solutions to complex planning problems that are bound by constraints • PLM (Product lifecycle management ) Business strategy that enables manufacturers to control and share product related data as part of product design and development efforts. • SUPPORTING JOINT DESIGN Management of E-commerce 6 -35

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Supply Chain Integration • HOW INFORMATION SYSTEMS ARE INTEGRATED – Internal integration – Integration with business partners • INTEGRATION ALONG THE EXTENDED SUPPLY CHAIN – Information integration along the extended supply chain— all the way from raw material to the customer’s door q Web Services An architecture enabling assembly of distributed applications from software services and tying them together Management of E-commerce 6 -37

Corporate (Enterprise) Portals • corporate (enterprise) portal A gateway for entering a corporate Web site, enabling communication, collaboration, and access to company information Management of E-commerce 6 -38

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Corporate (Enterprise) Portals • TYPES OF GENERIC CORPORATE PORTALS – Portals for Suppliers and Other Partners – Customer Portals – Employee Portals – Executive and Supervisor Portals – mobile portals Portals accessible via mobile devices, especially cell phones and PDAs Management of E-commerce 6 -40

Corporate (Enterprise) Portals • The Functionalities of Portals – information portals Portals that store data and enable users to navigate and query the data – collaborative portals Portals that allow collaboration • CORPORATE PORTAL APPLICATIONS AND ISSUES – Developing Portals Management of E-commerce 6 -41

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Collaboration-Enabling Environments And Tools 1. 2. 3. 4. Workflow Groupware Virtual meetings Collaboration 2. 0 Management of E-commerce 43

Collaboration-Enabling Environments And Tools: Workflow • Workflow The movement of information as it flows through the sequence of steps that make up an organization’s work procedures • Workflow systems Business process automation tools that place system controls in the hands of user departments to automate information processing tasks • Workflow management The automation of workflows, so that documents, information, and tasks are passed from one participant to the next in the steps of an organization’s business process Management of E-commerce 6 -44

Collaboration-Enabling Environments And Tools: Groupware – Groupware Software products that support groups of people who share common tasks or goals and collaborate on their accomplishment – Synchronous Versus Asynchronous Communication Management of E-commerce 6 -45

Collaboration-Enabling Environments And Tools: Virtual Meetings – Virtual meetings Online meetings whose members are in different locations, even in different countries – Virtual team A group of employees using information and communications technologies to collaborate from different work bases – Mass Collaboration – Group decision support system (GDSS) An interactive computer-based system that facilitates the solution of semistructured and unstructured problems by a group of decision makers Management of E-commerce 6 -46

Collaboration-Enabling Environments And Tools: Virtual Meeting Tools • REAL-TIME COLLABORATION TOOLS : 1. Sharing 2. Electronic Conference 3. Unified Communications Management of E-commerce 6 -47

Collaboration-Enabling Environments And Tools: Virtual Meeting Tools • Screen-sharing software Software that enables group members, even in different locations, to work on the same document, which is shown on the PC screen of each participant – Sharing Documents and Workspaces Management of E-commerce 6 -48

Collaboration-Enabling Environments And Tools: Virtual Meeting Tools • Electronic Conference – Teleconferencing The use of electronic communication that allows two or more people at different locations to have a simultaneous conference – Video teleconference Virtual meeting in which participants in one location can see participants at other locations on a large screen or a desktop computer Management of E-commerce 6 -49

Collaboration-Enabling Environments And Tools: Virtual Meeting Tools – Data conferencing aka Whiteboarding. Virtual meeting in which geographically dispersed groups work on documents together and exchange computer files during videoconferences. – Web Conferencing Web conferencing can take many forms, including both audio and video, often accompanied by collaborative technologies and data sharing. Management of E-commerce 6 -50

Collaboration-Enabling Environments And Tools: Virtual Meeting Tools • Unified communications (UC) Simplification of all forms of communication in the enterprise – Web Collaboration – Web Suites Management of E-commerce 6 -51

Collaboration-Enabling Environments And Tools: Collaboration 2. 0 • Collaboration 2. 0 The technology and tools used for collaboration in the Web 2. 0 world and in Enterprise 2. 0 that are in sync with social networking and user-generated content Management of E-commerce 6 -52

Collaboration-Enabling Environments And Tools: Collaboration 2. 0 – Collaborative workspace An interconnected environment in which all the participants in dispersed locations can access and interact with each other just as inside a single entity – Instant messaging Technologies that create the possibility of realtime textbased communication between two or more participants over the Internet/intranet – Presence information Status indicator that conveys ability and willingness of a potential communication partner Management of E-commerce 6 -53

Collaboration-Enabling Environments And Tools: Collaboration 2. 0 – Mobile Collaboration in the Web 2. 0 Environment • Mobile social networking service • Mobile Unified Communication • Mobile instant messaging Messaging service that transposes the desktop messaging experience to the usage scenario of being on the move Management of E-commerce 6 -54

Collaboration-Enabling Environments And Tools: Collaboration 2. 0 – Vo. IP Voice-over-Internet Protocol Communication systems that transmit voice calls over Internet Protocol–based networks – Blogs, Wikis, Virtual Worlds, Forums, and Other Tools Management of E-commerce 6 -55

Managerial Issues 1. How difficult is it to introduce e-collaboration? 2. How much can be shared with business partners? 3. Who benefits from vendor-managed inventory? 4. What are the costs and benefits of RFID? 5. Who is in charge of our portal and intranet content? 6. Who will design the corporate portal? 7. Should we conduct virtual meetings? Management of E-commerce 6 -56