E- SUPPLY CHAIN MANAGEMENT

Presented by

CHARLES.P

GUNASEKARAN.M

HARI HARA SUDHAN.R

MOHAMED ASIK.M

PRABHAKARAN.V

• The flow of material, information, money, and services from raw material suppliers through factories and warehouse to end customer

What is Supply Chain

WarehouseFactory End CustomerSupplier Distribution

E-Supply Chain Management

• Electronic supply chain management is most commonly referred to as e-supply chain management.

• It combines the concepts of electronic business (e-business) and supply chain management (SCM), and depicts how trade channel members are working together to optimize resources and opportunities

Elements of Supply Chain

Upstream

• 1st Tier Supplier

• 2nd Tier Supplier

Internal

• Manufacturing

• Packaging

Downstream

• Distribution Center

• Retailer

• Customer

Internal Value Chain,Manufacturing, Inventory Control

Distribution, Warehousing, Transportations

Supplier Relationship Management,Procurement Management

• Partner collaboration as strategic asset

• Information visibility

• Speed, cost, quality, and customer service

• Tightly integration

Success of Supply Chain

Financial Scenario

Online Shopping Site

SWIFT Network

Bank

Bank

Corporate

Vendor

Payments Hub

Core SystemConsumer

Source: Introducing Microsoft’s Integration Solution: BizTalk Server 2009Achieving business edge through process agility

Electronic Opportunities

• Advancement software

• EDI

• SCM collaboration

• Demand

Benefits of e-SCM

• Improved Supply Chain Network

• Minimized Delays

• Reduced Costs

• Accuracy of Data

Supply Chain Execution

Suppliers

DC Warehouse Inventory System

ERP System

Store Inventory SystemBizTalk

RFID Stores

Retailer

Check DC Warehouse

Inventory

DC Warehouse

Business Decision Makers

Messaging

EDIBAM

Re-stock Orders

Orchestration

BRE (Filter Tags)

RFID

Source: Introducing Microsoft’s Integration Solution: BizTalk Server 2009Achieving business edge through process agility

Supply Chain Activity

• Production and Distribution integration to facilitate make-to-order, and assemble to order

• Reduce inventory costing

• Eliminate stocking point

Supply Chain Replenishment

• Requisition, ordering, tracking, payment

• Improving the operation of supply chain

• Web–based functions online catalog, purchase order, and shipping notice

e-Procurement

• Using PDA in inventory entries (receiving, count, issuance)

Inventory Management using Wireless Technology

• Buyer and seller sharing demand & forecast plans

Collaboration Planning

• Web-based technology to support distribution, inventory tracking, transportation

e-Logistics

Supply Chain Infrastructure

• Facilitate supply chain relationships

Electronic Data Interchange (EDI)

• Corporate internal network for collaboration

Intranet

• Facilitate interorgnizational communication

Extranet

• A gateway for internal and external collaboration, and communication

Corporate Portal

• Managing the flow of information in organization

Workflow Systems and Tools

Operations Issues in Online Sales

• Inventory management

• Packing orders for shipment

• Delivery

• Customer returns

Tactics for Reducing Inventory Costs (5) Drop Shipping

When a customer orders from Company A, some or all of the order may be shipped by Company A's suppliers.

Customer ordersfrom Amazon

Order & paymentAmazon

distributioncenterFrequently ordered items

Supplier who sells a less frequently ordered item

makes a drop shipment

OrderOrdereditem

Operations Issues in Online SalesPacking Orders for Shipment

• Items are identified by bar codes or radio frequency ID (RFID)

• Warehouse workers put ordered items in crates

• Sorter sends each item to the correct, bar-coded box for the customer who ordered it

• Packing slip is printed

• Boxes are packed, taped, weighed

• Boxes are put on trucks for shipment to customers

Operations Issues in Online SalesCustomer Returns

• Objective: minimize the cost of customer returns and reduce "hassles" for customers– 25% of Internet orders result in a customer return

– Problems in returning goods are the 2nd biggest reason that consumers don't buy online

• Customer usually pays for return shipping

• Variety of approaches used to return goods: postal service, contract package delivery service, brick-and-mortar store

Operations Issues in Online SalesCustomer Returns (2)

• Online retailer must ship a replacement item or issue credit to customer

• Online retailer must process returned items

– Return defective items to supplier for a credit

– Good items can often be repackaged, priced, and resold.

SAP overview of SCM

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