Insight into the e-

Supply Chain
Management

1
Reference:

 Electronic- Commerce – A Manager’s

Guide; Kalakota Ravi, Whinston Andrew
B. ed-7: 2009.
 e- Commerce ; Diwan Parag, Sharma
Sunil.ed-1: 2000.
 Introduction to e- commerce; rayport
Jeffery F. , jaworski Bernard J. ed-2nd:
2004.
 www.google.com
 www.wikipedia.com
 www.Ezilon.com

2
Contents
 Definition of e-supply chain
 Case study on General Motors.
 Supply chain problems and their
causes.
 Solutions to supply chain
problems provided by EC.
 Discuss on integration along the
supply chain.
 Example
 Conclusion
3
 E-Supply Chain
Management
What is it?
The coordination and movement of products,
information and currency from the suppliers through
manufacturing
to the customers
Suppliers Manufacturers Distributors Retailers Consumers

• A cross-functional business process

• Increasingly driven from the right to the left, from the consumer and
customer to the supplier and manufacturer
• Competitive focus is no longer a product vs. product, but rather
supply chain vs. supply chain 4
Three major trends shaping
a “networked economy”

 Providing fast, global

reach

 Speeding the supply chain

 Constructing business
electronically
5
Fast, Global Reach

 World’s economy has become more

fully
integrated (a ‘business without
borders’
environment).
 Ability to source and sell globally is
a
critical success factor.
 Framework for global commerce is 6
Speeding the Supply
Chain
 Fast-cycle logistics is increasing as
companies of all sizes discover the power
of supply chain velocity.

 Information-intensive services will power

the supply chain.

 Ability to manage inventory at rest while

managing inventory in motion is an
intricate step of the supply chain.

 Adding value, visibility and velocity

throughout the supply chain will be
expected. 7
 Conducting Business
Electronically
 Electronic commerce in general is the
best way to minimize time and
distance.
 Convenience, accessibility,
connectivity, and reliability are the
pre-requisites of conducting business
electronically.
 Business-to-business e-commerce is
the
largest growing segment of this 8
Case study

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 How General Motors Is
Collaborating Online?

 The Problem
 Information regarding a new car
design has to be shared among a
pool of approximately 20,000
designers and engineers in
hundreds of divisions and
departments at 14 GM design labs,
some of which are located in
different countries.
10
How General Motors Is
Collaborating Online
(cont.)

 Communication and collaboration

with the design engineers of the
more than 1,000 key suppliers
could mean 4 years to completion
of a model.

11
How General Motors Is
Collaborating Online
(cont.)

 The Solution
 GM began by examining over 7,000
existing legacy IT systems, reducing
that number to about 3,000 and
making them Web enabled.
 A computer-aided design (CAD)
program that allows 3D design
documents to be shared online by both
the designers (internal and external)
and engineers .
12
How General Motors Is
Collaborating Online
(cont.)
 Collaborative and Web conferencing
software tools have radically changed
the vehicle review process.

 GM electronically sends its

specifications for the seat to the
vendor’s product data system
allowing:

Searching

Designing

Tooling
 Testing in real time

 This expedites the process and cuts

costs by more than 10%. 13
How General Motors Is
Collaborating Online
(cont.)
 The Results
 It now takes less than 18 months
to bring a new car to market.
 The change has produced
enormous savings.
 Shorter cycle time enables GM to
bring out more new car models
more quickly, providing the
company with a competitive
edge.
14
How General Motors Is
Collaborating Online
(cont.)

 What we can learn…

 Applications of EC that help
reduce costs and increase profits
 collaborative commerce
 improvements along the supply
chain

B2E

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E-Supply Chains
 The success of organizations
depends on their ability to manage
the flow of materials, information,
and money into, within, and out of
the organization.

 Supply chain involves activities

that take place during the entire
product life cycle including the
movement of information, money
and individuals involved in the
movement of a product or a
service. 16
E-Supply Chains (cont.)
 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.17
E-Supply Chains (cont.)

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 E-Supply Chains (cont.)

 Supply chain parts

 Upstream supply chain
 activities of a manufacturing company with its
suppliers
 Internal supply chain
 in-house processes for transforming the inputs
from the suppliers into the outputs
 Downstream supply chain
 activities involved in delivering the products to
the final customers

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E-Supply Chains (cont.)
 The success of an e-supply chain
depends on:
 The ability of all supply chain partners
to view partner collaboration as a
strategic asset.
 Information visibility along the entire
supply chain.
 Speed, cost, quality, and customer
service.
 Integrating the supply chain segments
more tightly.
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E-Supply Chains (cont.)
 E-supply chain consists of six
processes:
Supply chain replenishment
E-procurement
Collaborative planning
Collaborative design and product
development
E-logistics
Use of B2B exchanges and supply
webs
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E-Supply Chains (cont.)
 Major infrastructure elements
and tools of e-supply chains
are:
 Extranets
 Intranets
 Corporate portals
 Workflow systems and tools
 Groupware and other
collaborative tools
 EDI and EDI/Internet 22
Supply Chain Problems
and Solutions
 Typical problems along the
supply chain
 Slow and prone to errors because
of the length of the chain
involving many internal and
external partners.
 Large inventories without the
ability to meet demand.
 Insufficient logistics
infrastructure.
 Poor quality. 23
Supply Chain Problems
(cont.)
 Bullwhip effect: Erratic shifts
in orders up and down supply
chains
 Creates production and inventory
problems.
 Stockpiling can lead to large
inventories.
 Effect is handled by
information sharing—
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Supply Chain Problems
(cont.)
 Information systems are the links
that enable communication and
collaboration along the supply
chain

 Information and information

technology are one of the keys to
the success, and even the
survival in today’s economy
25
Supply Chain Problems
(cont.)
 Major solutions provided by an
EC approach and technologies
 Order taking
 Order fulfillment
 Electronic payments
 Inventories can be minimized
 Collaborative commerce

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 Integration along the
Supply Chain Example:
Toshiba USA
 Toshiba created a Web-based order
entry system for product parts using
an extranet and intranets
 Dealers can place orders for parts until
5:00 P.M. for next-day delivery without
extra charges.

 Dealers can check accounts receivable

balances and pricing arrangements and
read service bulletins, press releases,
and so on.

 Sales reps can interact more effectively

with dealers. 27
Integration along the Supply
Chain Example: Toshiba USA
(cont.)

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 Conclusion
Perhaps the most exciting future direction for e-
SCM lies in the collaboration area. Several
fortuitous events are converging.

First, companies have developed a mindset and

culture that is open to optimizing the supply chain
by working with partners and customers.

 Second, an increasing number of platforms,

packages and technologies have appeared to allow
meaningful collaboration from sharing product
design data, to developing joint forecasts and
customer reward programs.
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 “The time is ripe for e-SCM, and the
future promises even greater
returns and rewards to its
practitioners. Whether your
company is at the vanguard,
designing and implementing
cutting edge e-SCM solutions, or
being pulled into e-SCM initiatives
by its partners, embrace e-SCM
because it is here to stay.”
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