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E-supply chain management

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E-supply chain management

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E-supply chain management

  1. 1. E-Supply chain management Presented by Parit Ahuja Ashish Jain Prabakaran N
  2. 2. Agenda  What is e-SCM  Why use of technology  Issues in implementation  Research Methodology for Evaluation  Various Researches on E-SCM adopted be different business sectors
  3. 3. e- SCM  The flow of material, information, money, and services from raw material suppliers through factories and warehouse, to end customer.  The collaborative use of technology to improve the operations of supply chain activities as well as the management of supply chains.
  4. 4. Supply chain for Denim Jeans
  5. 5. Why use technology  Inventory levels: Firms keep track of their existing and needed inventory levels as the system can provides early warning signs when that product is running low.  Minimizing Bullwhip effect: The collaboration present with electronic supply chain management can go a long way in minimizing the “bullwhip” effect, the distortion of demand forecasts along a supply chain resulting from inaccurate or inadequate information.
  6. 6. ……  Long-term relationship: As firms open themselves, and their information, up to each other they are forced to align their own strategies and goals.  Speed: Speed and ability to communicate can be seen throughout the supply chain.  Cost: Decrease in cost of communication, carrying inventory and customer service.  Other: improved customer relationship, eliminates stock outs, encourages customer driven demand, and efficiency in tracking of delivery
  7. 7. Issues  Commitment: A firm must be committed to using the system, foregoing past methods of conducting business, such as phone, fax, and written record, and instead relying on the automated supply chain system.  Involvement of all parties: The benefits of technology must be conveyed to all parties involved.  Data accuracy: The benefits can only be accrued through the accuracy of the data entered into and the consistent usage of the system.
  8. 8. …….  Sharing of information: The more information is shared among organization, the more it will be beneficial.  Over reliance: Many have found that their supply chain strategies do not work when forced to respond to unexpected events. As inventory levels are minimized, there is less safety stock to handle emergencies. This emergency can come in many forms; a delayed shipment, a broken down truck, a jump in demand, a natural disaster. Unable to adapt to change, these supply chain systems are inaccurate and put their firm at a disadvantage.
  9. 9. Critiques: Research Model •L •S •Focus •C •S •B •L •S •PR •A •L •M •N Company Orientation Pages Focus & Function
  10. 10. B2B &B2C •Marketing •Catalog and Product information B2B •Inventory •Logistics B2C •Customer personalization •Order tracking Contd… Functions
  11. 11.  Effective Communication between Customers and Suppliers  Valid for companies under consideration  Not a comprehensive guide  Extent of public information (X or PW)  Free  Premium Research Assumptions
  12. 12.  Little correlation between firms’s revenues and expectations.  Size Advantage  Insight on how smaller firms could effectively Summary – Findings of Research
  13. 13. Key Factors Considered:  Consistent among all players.  Focus on both parties of business  Pricing Model  Information on all dealers and inventories  No online purchase Automotive manufacturers
  14. 14. Key Factors Considered:  A broad network where the exchange of past problems and resolutions as well as scorecards on supplier performance in obtained.  Ability to build contracts and current production information.  Employees to access company’s intranet from remote location.  Supplier websites also provides link to third party sites to serve them better Automotive Suppliers
  15. 15. Build to Forecast and Build to delivery
  16. 16. Supply chain management in toyota vendor manufaktur dealer customer 1. Local parts 2. Import parts (3)Receiving dock  pc storeproduction (4)dealer (5)customer PC store ProductionReceiving Dock Dealer Local Parts Local Parts • 1 and 2 Linked between internal and vendor STOCK REDUCTION USING KANBAN ( Kanban Cyclic ) & SEQUENTIAL PARTS DELIVERY KANBAN:- A small time that is the key cotrol for JIT production
  17. 17. Topology of Systematic SCM management
  18. 18. Cumulative Research Results
  19. 19. Key Factors considered:  Plenty of content designed for consumer including product and pricing information.  Degree of customization and personalization.  Pricing and promotions differ for different users.  HP – Hard Deck, for authorized dealers and sellers.  Gateway - e-Marketplace, provides virtual exchange for buyers and sellers. Technology – E-commerce
  20. 20. Gateway’s Business model shift paradigm
  21. 21. Gateway’s Business activities
  22. 22. Cumulative Research results
  23. 23.  Design—web, HTML etc.  E-commerce application development  Application support  Operations—mainly managing the relationship with Exodus, which hosts Gateway.com  Quality assurance  Strategy R&D group—Their job is to track new technologies and develop strategies to take advantage of new capabilities. Organisation of E-commerce
  24. 24. Performance of E-commerce
  25. 25.  Provides personalized shopping experiences for customers - Customer Focus  Large amount of information and data.  Excellent response time – Reflection of efficient supply chain.  Account and access through secured credentials.  Amazon.com Technology -dot-coms
  26. 26.  Make the right offer at the right time  Optimize your up-sell and cross-sell success  Fully customize the checkout  Utilize a complete history of customer interactions Volume on conversions • Generate more online revenue • Elevate stickiness • Increase brand awareness Shopping – Experience
  27. 27. More Visitors to Customers  Track and optimize  Easily test and refine content  Optimize conversions  Identify and target visitors Contd…
  28. 28. Amazon.com User Personalized page
  29. 29. Cumulative Research results
  30. 30. Financial Services - Banking  Offered services for individuals, small businesses and large corporations  Some form of Account  Accessed by password  Access financial Information  Wells Fargo offered a spectrum of financial services including e-brokerage , business portal (accounts receivables , financial software)  Goldmann Sachs & Co. offered high volume E-trading through brokerages via FIX
  31. 31. Financial Services – Banking (Contd..)  Bank One and National City  Offered the usual personal banking services  Highly diversified in the amount of options that they provide to their customers  Means to further eliminate paper from the world of international trade  Electronic facilitation of the process – use of imaging and workflow engines , not paper and checks
  32. 32. Axis Bank – eSCM  The Bank provides holistic funding solution to the supply chain of corporates  Products cater to the funding needs of supply chain members  Increased efficiency of the entire chain  Service delivery is through a technology platform to increase transactional convenience for the corporate
  33. 33. Axis Bank – eSCM Model Dealer Financing Factoring of Receivables Purchase Invoice financing Rent receivable Financing Model
  34. 34. Axis Bank – eSCM Model(Contd..)  Dealer Financing : provide financing facility to the dealers exclusively for their purchases made from that corporate  Factoring of Receivables : helps the corporate in boosting its sales and managing receivables  Purchase Invoice Financing : provide financing to the vendors of a particular corporate against supplies made to that corporate . It helps in developing a strong and reliable vendor base  Rent Receivable Financing : designed for companies involved in renting out goods . The loans are advanced against future rent receivables
  35. 35. Financial Services – Investment  Offered spectrum of services  Discount trading  Variety of financial services to private investors and employers  Secured data transfer  Customer accounts ( offered by all )  Discount brokerages  Ameritrade and Etrade concentrated on providing services to individual investors and stock info  Ameritrade makes a 10 second guarantee
  36. 36. Cumulative Research results
  37. 37. Retail – General Merchandise  Many web sites offered tremendous e-commerce ability but little in the realm of services for their suppliers  Wal-Mart offers :  Normal range of retail items  Online pharmacy  Order tracking  Vacation packages  Internet Service provider
  38. 38. Wal-Mart Supply Chain Management  Finest example of supply chain management  Prices are low and their shelves are well stocked  Legendary Inventory Replenishment system triggered by point-of-sale purchases
  39. 39. Retail Clothing  Primarily customer driven  Most have some e-commerce capability  Very little provided for the suppliers  Aside from the type of clothing, there was very little differentiation among these clothing websites
  40. 40. ZARA SCM Model  Short Lead time = More fashionable clothes  Lower Quantities = Scarce supply leads to higher demands  More Style = More choice , and more chances of hitting it right  Zara Fact : Consumers in London visit the average store four times annually , but zara’s customers visit its shops at an average of 17 times a year
  41. 41. ZARA SCM Model(Contd..)  The company spends almost nothing on advertisement and uses the savings to support higher cost of production  The tight integration of design , planning , merchandising and production enables the company to be flexible  By forecasting demand accurately , it has led to well managed inventories , higher profitability and value creation for shareholders
  42. 42. Retail Electronics Websites  Offered tremendous e-commerce ability  Product information, promotions and order tracking were readily available  highly promotional offering usual weekly coupon flyers as well as special online deals  Circuit City – Express pick up option
  43. 43. Best Buy SCM Model  Set out to change its logistics strategy by offering small , more intimate shopping environments with a cleaner look  Reduced its transportation expenses by 30 percent per shipment in the stores that were remodeled  The changes helped the store work more efficiently and effectively  Named Nasstrac’s shipper of the year
  44. 44. Cumulative Research results
  45. 45. Transportation – Air Websites  Highly focussed on their customers  None of the sites held supplier information  Offer flight availability, flight and baggage tracking , and logistics information for travel agents  Consistent with each other , offering similar features and services
  46. 46. American Airlines
  47. 47. Transportation – Rail Websites  Offered extensive logistics and tracking services for their customers  Union Pacific – the only railroad offering web services for its suppliers  The Company offered web invoicing, routing information, and information on how to become a supplier.
  48. 48. Union Pacific Railroad SCM
  49. 49. Transportation – Package delivery  Companies examined offered e-commerce, order tracking and logistics services  UPS offered wireless solutions and web services along with some basic services  Western Union was primarily customer focused  the site did offer online payment options and information for its nationwide agents.
  50. 50. Union Parcel Service
  51. 51. Conclusion (e-SCM)  Supply chain management has been growing in importance with firms concentrating on internal processes to the web-linking of supply chain partners.  Firms have been pressed to increase their operational efficiencies to stay competitive.  Some of the benefits include  lower inventory levels,  quicker response to problems  higher quality levels  higher customer satisfaction  more diverse product offerings

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