Principles of eBusiness University of Wollongong 2005 - Lecture 9
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Transcript of Principles of eBusiness University of Wollongong 2005 - Lecture 9
2 May 20052 May 2005 IACT 304 - Lecture 11IACT 304 - Lecture 11 11
Supply Chain Supply Chain Management Management Principles of eBusiness - IACT Principles of eBusiness - IACT 304304
Katina MichaelKatina Michael61 2 4221393761 2 [email protected]@uow.edu.auhttp://www.itacs.uow.edu.auhttp://www.itacs.uow.edu.au
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Lecture ScheduleLecture Schedule1 1 Overview of Overview of ECEC
22Patterns for Patterns for eBusinesseBusiness
3 3 Business-to-Business-to-Consumer EC Consumer EC (B2C)(B2C)
4 4 Business-to-Business-to-Business EC Business EC (B2B)(B2B)
55Collaboration Collaboration + Information + Information AggregationAggregation
**RECESSRECESS
66Mobile Mobile Commerce & Commerce & Pervasive Pervasive ComputingComputing
77Electronic Electronic Payment Payment Systems (EPS)Systems (EPS)
88Customer Customer Relationship Relationship Management Management (CRM)(CRM)
9 9 Anzac Day Anzac Day HolidayHoliday
1010Enterprise Enterprise Resource Resource PlanningPlanning
11 11 Supply Chain Supply Chain Management Management (SCM) (SCM)
1212e-Government e-Government ECEC
13 13 Legal, Legal, Regulatory & Regulatory & Ethical IssuesEthical Issues
**ExamExam
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Lecture 11 - OutcomesLecture 11 - Outcomes Understand the supply chainUnderstand the supply chain Describe problems with the Describe problems with the
traditional supply chaintraditional supply chain Describe how these problems can Describe how these problems can
be overcome with adaptive supply be overcome with adaptive supply chainchain
Identify the main technologies Identify the main technologies involved in building supply chain involved in building supply chain relationshipsrelationships
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IntroductionIntroduction A A supply chainsupply chain is the flow of is the flow of
materials, information, money, materials, information, money, and services from raw material and services from raw material suppliers through factories and suppliers through factories and warehouses to the end warehouses to the end customers.customers.
It is how partnering organisations It is how partnering organisations are are linkedlinked together together
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SCM Definition (1)SCM Definition (1)
APICS defines APICS defines Supply Chain Management (SCM) as Supply Chain Management (SCM) as
the the – planning planning – organizingorganizing– controlling controlling
of supply chain activities. of supply chain activities.
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SCM Definition (2)SCM Definition (2) The Supply-Chain Council (SCC) The Supply-Chain Council (SCC)
defines supply chain activities as defines supply chain activities as ““all customer interactions, from order all customer interactions, from order
entry through paid invoice; entry through paid invoice; all product (physical material or all product (physical material or
service) transactions, from supplier’s service) transactions, from supplier’s supplier to customer’s customer; supplier to customer’s customer;
and all market interactions, from the and all market interactions, from the understanding of aggregate demand understanding of aggregate demand to fulfillment of each order.” to fulfillment of each order.”
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Supply Chain Supply Chain SegmentsSegments UpstreamUpstream supply chain supply chain
– Includes activities of a manufacturing company with its Includes activities of a manufacturing company with its supplierssuppliers
– Majority activity is procurementMajority activity is procurement– Origin of materials is primary industryOrigin of materials is primary industry
InternalInternal supply chain supply chain– All the in-house processes used in transforming the inputs All the in-house processes used in transforming the inputs
received from the suppliers into the organisation’s outputsreceived from the suppliers into the organisation’s outputs– Extends from time inputs enter organisation to the time Extends from time inputs enter organisation to the time
that the products go to distribution outside the organisationthat the products go to distribution outside the organisation DownstreamDownstream supply chain supply chain
– Includes all the activities involved in delivering the products Includes all the activities involved in delivering the products to the final customersto the final customers
– Attention given to distribution, warehousing, transportationAttention given to distribution, warehousing, transportation
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A Simple Supply Chain A Simple Supply Chain for a Toy Storefor a Toy Store
Turban © 2002
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The Value Chain The Value Chain InfrastructureInfrastructure
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The Virtual FactoryThe Virtual Factory
The Virtual Factory © Solectron
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E-Business E-Business ManufacturingManufacturing
eManufacturing © Camstar
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Supply Chain ProblemsSupply Chain Problemsand Control and Control MechanismsMechanisms Supply Chain Supply Chain
ProblemsProblems– Inventory levelsInventory levels– Inventory TurnsInventory Turns– Stock-outsStock-outs– On-time DeliveriesOn-time Deliveries– Cycle TimesCycle Times– Supply Chain CostsSupply Chain Costs– RevenuesRevenues
Supply Chain Supply Chain LeversLevers– Demand AllocationsDemand Allocations– Supply AllocationsSupply Allocations– BOMs and BOM BOMs and BOM
AssignmentsAssignments– Lead TimesLead Times– Replenishment LevelsReplenishment Levels– Hard and Soft Hard and Soft
CapacitiesCapacities– Flexibility AgreementsFlexibility Agreements
Improving Extended Supply Chain Performance Through Better Control © SoftChain 2002
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Traditional Traditional Supply Chain ModelSupply Chain Model
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Supply RelationshipManagement© Entomo 1999
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Problems with Long-term Problems with Long-term Forecasting- Demand Forecasting- Demand VolatilityVolatility
Lessons in SCM from 2001 © KPMG
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Entities of B2B within Entities of B2B within the Supply Chainthe Supply Chain
Selling companies- marketing products/servicesSelling companies- marketing products/services Buying companies- procurement processBuying companies- procurement process Electronic intermediaries- third party service providersElectronic intermediaries- third party service providers Trading platforms- pricing & negotiation protocolsTrading platforms- pricing & negotiation protocols Payment services- mechanism to transfer dollarsPayment services- mechanism to transfer dollars Logistic providers- packaging, storage, deliveriesLogistic providers- packaging, storage, deliveries Network platforms- Internet, intranets, extranets, VANNetwork platforms- Internet, intranets, extranets, VAN Protocols of communication- EDI, XMLProtocols of communication- EDI, XML Other services- directory services, security, back upOther services- directory services, security, back up Back-end integration- connecting to ERP systems, Back-end integration- connecting to ERP systems,
dbasedbase
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B2B Supply ChainB2B Supply Chain
Turban © 2002
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Disintermediation in Disintermediation in the B2C Supply Chainthe B2C Supply Chain Disintermediation Disintermediation
refers to the refers to the removal of removal of organisations or organisations or business process business process layers responsible layers responsible for certain for certain intermediary intermediary steps in a given steps in a given value chain.value chain.
Turban © 2002
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Traditional Supply Traditional Supply Chain vs Adaptive Chain vs Adaptive Supply ChainSupply Chain
Adaptive Supply Chain Networks © SAP
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e-SCMe-SCM e-SCM is the collaborative use of e-SCM is the collaborative use of
technology to enhance B2B processes technology to enhance B2B processes and improve speed, agility, real-time and improve speed, agility, real-time control, and customer satisfaction.control, and customer satisfaction.
It is the use of technologies to enhance It is the use of technologies to enhance B2B processesB2B processes
Not just about technology; it involves Not just about technology; it involves change in management policies, change in management policies, organisational culture, performance organisational culture, performance metrics, business processes, and metrics, business processes, and organisation structure across the supply organisation structure across the supply chain.chain.
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Shrinkage EffectShrinkage Effecton Businesson Business
Adaptive Supply Chain Networks © SAP
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Adaptive Supply Adaptive Supply ChainsChains Manage VisibilityManage Visibility
– Quality of information Quality of information intra and inter intra and inter organisationalorganisational
– Needs to be very accurateNeeds to be very accurate Manage VelocityManage Velocity
– Access and distribute Access and distribute information across the information across the supply network rapidly (in supply network rapidly (in real-time)real-time)
Manage VariabilityManage Variability– Forget historical Forget historical
forecasts, adapt to forecasts, adapt to custom-order designs by custom-order designs by increasingly sharing increasingly sharing information with network information with network partnerspartners
Adaptive Supply Chain Networks © SAP
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Stages to AdaptivityStages to Adaptivity IntegratedIntegrated
– Relational databases, client-Relational databases, client-server architecture, TCP/IP server architecture, TCP/IP protocols, multimedia, protocols, multimedia, wireless technology have wireless technology have catapulted intra-organisation catapulted intra-organisation integrationintegration
CollaborativeCollaborative– ability of the supply network ability of the supply network
to exchange near real-time to exchange near real-time information and thereby information and thereby execute better and fasterexecute better and faster
AdaptiveAdaptive– Group of organisations Group of organisations
working together to share working together to share transactional, operational, transactional, operational, and financial data to enhance and financial data to enhance network competitiveness and network competitiveness and optimise network profitabilityoptimise network profitability
Adaptive Supply Chain Networks © SAP
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Changes in the Changes in the Supply ChainSupply Chain
Turban © 2002
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Extranet using the Extranet using the Internet and VPNInternet and VPN
Turban © 2002
Supplier’s Extranet: Hudson’s Dayton
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Benefits of ExtranetsBenefits of Extranets Enhanced Enhanced
communicationscommunications Productivity Productivity
enhancementsenhancements Business Business
enhancementsenhancements Cost reductionCost reduction Information Information
deliverydelivery
Improved internal Improved internal communicationscommunications
Improved business Improved business partnershipspartnerships
Just-in-time information Just-in-time information deliverydelivery
Productive collaborationProductive collaboration Fast time-to-marketFast time-to-market Lower design and Lower design and
production costsproduction costs New business opportunitiesNew business opportunities Improved client Improved client
relationshipsrelationships Reduced travel and Reduced travel and
meetingsmeetings
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But What About But What About Intrabusiness Intrabusiness Practices?Practices? A A corporate portalcorporate portal is a gateway to a is a gateway to a
corporate Web site that enables corporate Web site that enables communications, collaboration, and access communications, collaboration, and access to company information.to company information.
Corporate portals offer employees, Corporate portals offer employees, business partners, and customers an business partners, and customers an organised focal point for their interactions organised focal point for their interactions with the firm.with the firm.
Portals for: suppliers, customers, Portals for: suppliers, customers, employeesemployees
Workflow applications/ technologies are Workflow applications/ technologies are paramount to successful corporations.paramount to successful corporations.
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Key TermsKey Terms
Buyer Buyer SideSide
Seller Seller SideSide
DisintermeDisintermediationdiation
ManufactuManufacturere
DistributorDistributorss
SuppliersSuppliers ProducerProducer RetailersRetailers
TraditionTraditional SCMal SCM
Adaptive Adaptive SCMSCM
eProcuremeneProcurementt
IntermediariIntermediarieses
IntranetIntranet ExtranetExtranet Virtual Virtual Private Private NetworkNetwork
Supply Supply Relationship Relationship ManagementManagement