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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
7-2
E-upply !hains
SCM aims to
#$ minimi%e inventory levels,
2$ optimi%e production and increase throughput
&$ decrease manufacturing time,
'$ optimi%e logistics and distribution,
($ streamline order fulfillment, and
)$ reduce the costs associated with these activities
E-Supply Chains
*nfrastructure for e-!+
,
Electronic -ata *nterchange .E-*$
,
E/tranets
,
*ntranets
,
!orporate portals
,
Wor0flow systems and tools1 software to
manage the flow of info in organi%ation
,
2roupware and other collaborative tools
Simple Value Chain
E-SUPPLY CHAIN
Electronic supply-chain management (e-SCM) is the
collaborative use of technology to enhance business-to-
business processes and improve speed, agility, real-time
control, and customer satisfaction. ot about technology
change alone, e-SCM is about cultural change and changes in
management policies, performance metrics, business
processes, and organi!ational structures across the supply
chain.
Enterprise "rocess #lo$
"roduction Materials
Manufacturing
"rocess
%elivered &rders
&rder-#ulfillment
"rocess
"lanning "rocesses
#orecast 'e(uirements
Customer #orecast
"urchase 'e(uirements
Customer &rders
'eturns ) 'epairs
"rocurement "rocess %esign 'e(uirements
Support "rocesses
%esign 'e(uirements %esign
'e(uirements
Settlements Settlements
Suppliers Enterprise Customers
*.Supply-chain replenishment
+.E-procurement
,.Collaborative planning
-.Collaborative product development
..E-logistics
/.Supply $ebs.
COMPONENTS OF THE E-SUPPLY CHAIN
E-upply !hains
e-procurement
The use of Web-based technology to support the 0ey
procurement processes, including re3uisitioning,
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
Collaborative Plannin
Collaborative planning re(uires buyers and sellers to develop a
single shared forecast of demand and a plan of supply to support
this demand, and to update it regularly, based on information
shared over the 0nternet. Collaborative planning is a business-to-
business (1+1) $or2flo$ across multiple enterprises over the
0nternet, $ith data e3changed among them dynamically.
E-Loisti!s
E-logistics is the use of 4eb-based technologies to support
the $arehouse and transportation-management processes. E-
logistics enables distribution to couple routing optimi!ation
$ith inventory trac2ing and tracing information. 0nternet-based
freight auctions allo$ spot buying of truc2ing capacity. 5hird-
party logistics providers offer virtual logistics services by
integrating and optimi!ing distribution resources.
E! olutions along the upply !hain