Synopsis

on

Effects of Supply Integration in E-commerce

Industry

Synopsis submitted in partial fulfillment of requirements for

Bachelors of Business Administration
Logistics and supply chain management

Mentors Name-
Mr. Akhil Damodaran
COURSE COORDINATOR of BBA(LM)

UPES- Dehradun

Submitted by-

Yogesh Verma
SAP ID-500035773
Enrolment Number:R380214033
BBA Logistics and Supply Chain Management
2014-2017
College of Management & Economics Studies, UPES
 Table of Contents

1- Supply Chain Integration

What is the Supply Chain Integration
Supply Chain Management Today
Supply Chain Management Tomorrow
Supply Chain Integration and Performance
Challenges and obstacles of supply chain integration
2- E-Commerce
What is E-Commerce?
Scopes of E-Commerce
Benefits of E-Commerce
3- Research Methodology
4- Research Objectives
5- Data Sources
6- Literature Review
7- Bibliographic References

Supply Chain Integration

What is the Supply Chain Integration?

 To succeed in the digital economy, organizations must manage the integration of
business, technology, people, and processes not only within the enterprise but also across
extended enterprises. Supply Chain Management (SCM) system facilitates inter-
enterprise cooperation and collaboration with suppliers, customers, and business
partners. Although this system can bring benefits and competitive advantage to
organizations, the management and implementation of this system pose significant
challenges to organizations. Process integration and redesign is important component
SCM implementations. Integration involves not only implementing ERP systems and
ensuring they communicate or interface with legacy systems, but it also involves
integrating ERP and SCM systems with Customer Relationship Management (CRM),
Product Lifecycle Management (PLM), and e-procurement and e-marketplaces, as well
as making them available over the Web to foster cooperation and collaboration across the
entire value chain. In todays dynamic business environment, many companies are
expanding, merging, contracting, or otherwise redesigning their supply chain. Due to the
rapid advancements of technology such as pervasive or ubiquitous wireless and internet
networks, the basic supply chain is rapidly evolving into what is known as a Supply
Chain Network. The supply chain network is a dynamic and integrated system in which
all firms integrated to increase the value of every chain. Integration is a process of
redefining and connecting parts of a whole in order to form a new one
Companies searched for new business paradigms that would led to competitive
advantage. Just in Time (JIT), Supply chain Management (SCM), Theory of Constraints
(TOC) and Total Quality Management (TQM) are examples of strategies that helped
companies to improve production processes, reduce costs and successfully compete in a
variety of business environments. Every MIS researcher should be familiar with the
basic fact about globalization and internet influence on SCM. In order to improve
competitiveness, companies began realize the potential of information technology to
dramatically transform their business. Instead of automating old, inefficient processes,
companies began to reengineer business processes using technology as the enabler. This
led to emerge Supply chain management models. A supply chain consists of all stages
involved, either directly or indirectly, in fulfilling a customer request. A supply chain
includes manufacturer, supplier, transporters, warehouses, retailer, third-party logistic
provider, and customer. The objective of supply chain management is to maximize the
overall value generated rather than profit generated in a particular supply chain.
A- Supply Chain Management Today:
If we take the view that Supply Chain Management is what Supply Chain Management
people do, then in 1997 Supply Chain Management has a firm hand on all aspects of
physical distribution and materials management. Seventy-five percent or more of
respondents included the following activities as part of their company's Supply Chain
Management department functions:
Inventory management
Transportation service procurement
Materials handling
Inbound transportation
Transportation operations management
Warehousing management
 Moreover, the Supply Chain Management department is expected to increase its range
of responsibilities, most often in line with the thinking that sees the order fulfilment
process as one coordinated set of activities. Thus the functions most often cited as
planning to formally include in the Supply Chain Management department are:
Customer service performance monitoring
Order processing/customer service
Supply Chain Management budget forecasting
On the other hand, there are certain functions which some of us might feel logically
belong to Supply Chain Management which companies feel are the proper domain of
other departments. Most difficult to bring under the umbrella of Supply Chain
Management are:
Third party invoice payment/audit
Sales forecasting
Master production planning

B- Supply Chain Management Tomorrow:

The future for Supply Chain Management looks very bright. This year, as well as last
year, two major trends are benefiting Supply Chain Management operations. These are-
Customer service focus
Information technology
Successful organizations must be excellent in both of these areas, so the importance of
Supply Chain Management and the tools available to do the job right will continue to expand.

C- Supply Chain Integration and Performance:

Supply chain integration is the extent a manufacturer strategically collaborates with
its supply chain partners and collaboratively manages intra- and inter-organizational
processes. The definition of integration has gone through various modifications owing to
research in different perspectives. An increase in level of SC integration will provide rapid
access to required source of information, more sensitivity toward the needs of customers and
enabling faster response time creating a competitive edge among competitors . Given the
importance of supply chain integration, prior studies have examined a variety of topics to
understand the composition of supply chain integration along with the factors that facilitate it,
and the consequences of achieving it
It becomes imperative to study performance aspect of a system whenever a procedure, a
model, an approach, or any other research is undertaken. Performance measurement is
integral in evaluation of any system. It is very important as a strategic tool and also provides
means to achieve the objectives required, fulfilling a firm's mission/strategy statement. In
order for the supply chain to efficiently measure the overall performance, it has to distinguish
itself from other performance measurement models by including suppliers, distributors etc.
thereby making it multiple enterprises multiple measures type model. Various metrics have
been considered to measure supply chain performance in the literature. Supply chain
 performance can be measured in varied dimensions like cost, quality, delivery, flexibility and
reliability etc.

D-Challenges and obstacles of Supply Chain Integration:

Supply chain management (SCM) executives face unique challenges, with respect to
integrating supply chainspecific strategies with the overall corporate business strategy. In
recent years, given changing business realities related to globalization, the supply chain has
moved up on the chief executive officer s (CEOs) list of priorities. But it's not always for
the right reasons. In many cases, CEOs only pay attention to the supply chain when they
want to cut costs or when something is wrong. Since the supply chain essentially moves the
lifeblood of the organization, process efficiency on a global scale is essential to optimized
business operations. The importance of global integration to the Multi-National Company
(MNC) lies in the differential advantage to be gained from the ability to exploit differences
in capital and product markets, to transfer learning and innovation throughout the firm, and
manage uncertainty in the economic or political environment in different countries or
regions. However, the general understanding of the business environment in most industries
is that competition has increased and the conditions under which business is made are more
turbulent.

E-Commerce

What is Internet Commerce

E-commerce is a transaction of buying or selling online. Electronic commerce
draws on technologies such as mobile commerce, electronic funds transfer, supply chain
management, Internet marketing, online transaction processing, electronic data
interchange (EDI), inventory management systems, and automated data collection systems.
 Modern electronic commerce typically uses the World Wide Web for at least one part of the
transaction's life cycle although it may also use other technologies such as e-mail.

E-commerce businesses may employ some or all of the following:

Online shopping web sites for retail sales direct to consumers

Providing or participating in online marketplaces, which process third-party business-

to-consumer or consumer-to-consumer sales

Business-to-business buying and selling

Gathering and using demographic data through web contacts and social media

Business-to-business (B2B) electronic data interchange

Marketing to prospective and established customers by e-mail or fax (for example,

with newsletters)

Engaging in pretail for launching new products and services

Online financial exchanges for currency exchanges or trading purposes

By Internet commerce, we mean the use of the global Internet for purchase and sale of goods,
services, including service and support after sale.
Internet commerce brings some new technology and new capabilities to business, but the
fundamental business problems are those that merchants have faced for hundred - even
thousands - of years:
You must have something to sell, make it known to potential buyers, accept payment
deliver the goods or services, and provide appropriate service after the sale.
The Internet - an efficient mechanism for advertising and distributing product
information. Internet commerce - one type of the more general electronic commerce
There are many different definitions and understanding about E-Commerce, Few as follows-
Zwass defines e-commerce as - the sharing of business information, maintaining business
relationships, and the conducting business transactions by means of telecommunications
networks
Treese and Stewart gave their view of Internet-commerce as follows:
the use of the global Internet for purchase and sale of goods and services, including
service and support after the sale. The Internet may be an efficient mechanism for advertising
and distributing product information, but our focus is on enabling complete business
transactions.
 . Speaking broadly, electronic commerce includes the use of computing and
communication technologies in financial business, online airline reservation, order
processing, inventory management...
Historically speaking, the best known idea in electronic commerce has been Electronic Data
Interchange (EDI)
A- The Scope of Electronic Commerce:
Electronic Commerce encompasses one or more of the following:
EDI on the Internet
E-mail on the Internet
Shopping on the World Wide Web
Product sales and services on the Web
Electronic banking or funds transfer
Outsourced customer and employee care operations
Electronic Commerce: Automates the conduct of business among enterprises, their customers,
suppliers and employees - anytime, anywhere.
Creates interdependencies between your companys value chain and those of your suppliers
and customers. Your company can create competitive advantage by optimizing and re-
engineering those value chain links to the outside.

B- Benefits of Internet Commerce:

Business benefits:
Reduced costs to buyers from increased competition on-line
Reduced costs to suppliers by on-line auction
Reduced errors, time, and overhead costs information processing
Reduced inventories, and warehouse
Increased access to real-time inventory information, speed-up ordering &
purchasing processing time
Easier enter into new markets in an efficient way
Easily create new markets and get new customers
Automated business processing
Cost-effective document transfer
Reduced time to complete business transactions, speed-up the delivery time
Reduced business overhead and enhance business management
Marketing benefits:
Improved market analysis, product analysis and customer analysis.
Low-cost advertising
Easy to create and maintain customer or client database.
Customer benefits:
 Wide-scale information dissemination
Wide selection of good products and goods at the low price
Rapid inter-personal communications and information accesses
Wider access to assistance and to advice from experts and peers.
Save shopping time and money
Fast services and delivery

Research Methodology
The Methodology of a Supply chain Management project- solutions The best supply-chain
management programs display certain common characteristics.
For one, they focus intensely on actual customer demand. Instead of forcing into the market
product that may or may not sell quickly (and thereby inviting high warehousing costs), they
react to actual customer demand. And by doing so, these supply-chain leaders minimise the
flow of raw materials, finished product, and packaging materials at every point in the
pipeline.
To respond more accurately to actual customer demand and keep inventory to a minimum,
leading companies have adopted a number of speed-to-market management techniques. The
names by now have become part of the Supply Chain Management vernacular JIT
manufacturing and distribution, quick response (QR), efficient consumer response (ECR),
vendor managed inventory (VMI), and more. These are the tools that help build a
comprehensive supply-chain structure.
A Four Step integrated Approach
In view of the importance of Supply Chain Management to commercial success, making the
right decision about which system is best is vital. Before deciding how to develop new
service Supply Chain Management chains and economical distribution centres, many factors
must be considered, such as, the required customer service levels, optimum location, stock
holding policies and EDP systems. To help organisations make the best decisions, the
Miebach Supply Chain Management Group employs an integrated planning approach,
consisting of four steps from planning to realisation: "The integrated planning process helps
to find solutions that best match clients requirements and the technical demands of the
problem", states Dr Joachim Miebach, Chairman of the Miebach Supply Chain Management
Group. "The only way to manage the growing complexity in international Supply Chain
Management chains is through the integration of strategy, engineering and IT systems and
methods."
Potential analysis
Concept study
Detailed planning
Project or change management
 Research Objectives
The fundamental objective is to "add value". That brings us to the example of the fish fingers.
During the Supply Chain Management conference in the United Kingdom this fall, a
participant in a supply chain management seminar said that total time from fishing dock
through manufacturing, distribution, and final sale of frozen fish fingers for his European
grocery-products company was 150 days.
Supply Chain Management becomes a tool to help accomplish corporate strategic objectives:
Reducing working capital,
Taking assets off the balance sheet,
Accelerating cash-to-cash cycles,
Increasing inventory turns, and so on.

Data Sources:
Articles
Websites

Literature Review
Competence as a concept has extended into varied fields of business dealing with human
resource. Competencies are measurable and success in developing them forms a critical
component of organizational capability. Although competencies have been studied at
individual, team and organizational level, there is a dearth of empirical studies in the realm of
supply chain management. At the individual level, competencies have been assessed mainly
through case studies in supply chain management literature.
Lahti (1999) describe competency at the individual level, not as an independent collection of
knowledge, skills, abilities and other characteristics (KSAO).A competency is at a higher,
more general level which is an integration of KSAOs possessed by an individual and not just
a cluster of behaviours. Additionally, a competency can be consistently verified by indirect
indicators such as an individual's behaviours as well as through the individual's performance
on tasks that are subject to evaluation.
The way a supply chain manager is perceived in the complex business environment
has changed remarkably in the recent years. The role of supply chain professional has
evolved from just being functional focused to process focused. Supply chain managers not
only need to be equipped with the skills and knowledge to manage logistics but are also
required to be relationship managers. Jayaram and Avittathur (2012) stated the limited
availability of managerial talent with expertise in the key supply chain functions
(procurement, logistics, demand planning, process management, etc.) in spite of abundant
business schools and rising specialized programs in supply chain management. The expected
demand and supply of good supply chain talent is projected to have a very obvious mismatch.

Bibliography /References:

http://www.engr.sjsu.edu/gaojerry/course/cmpe296u/296z/introduction.pdf
http://www.adi.pt/docs/innoregio_supp_management.pdf
http://airccse.org/journal/mvsc/papers/5314ijmvsc04.pdf
http://www.iaeng.org/publication/IMECS2010/IMECS2010_pp405-409.pdf