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Supply Chain Management & eCommerce Technology presented by: Nachiappan Annamalai.

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Presentation on theme: "Supply Chain Management & eCommerce Technology presented by: Nachiappan Annamalai."— Presentation transcript:

1 Supply Chain Management & eCommerce Technology presented by: Nachiappan Annamalai

2 Overview Supply Chain Management - Whazzit SCM today - Problems Solutions - e-Commerce Examples of present systems - - i2 Technologies e-Commerce - Application to SCM - Framework Future of SCM & e-Commerce Suggestions

3 World Internet Population 3/99 World Total 158.50 MILLIONWorld Total Africa 1.14 millionAfrica Asia/Pacific 26.97 millionAsia/Pacific Europe 36.55 millionEurope Middle East.88 millionMiddle East Canada & USA 88.33 millionCanada & USA South America 4.63 millionSouth America




7 Effective SCM involves Managing Supply Chain as a single entity Recognizing end user service requirements Customer Utility = f(time, quantity, place) Recognizing time as basis of competitive advantage Effective use of Inventory Continuos Improvement

8 Time Involved in the Process

9 Effects of Time Consuming SCM Excessive Inventory - $ 30 Billion ( Grocery Supply Chain alone) Poor Product forecast Poor Capacity Planning Poor Customer Service High Corrective Costs - Overtime, Subcontracting, Trans. Prob. Optimized Supply Chain as a Whole entity - Not Possible Internationalization - Not possible


11 Distribution

12 Other Problems Demand Forecast Updating Order Batching Price Fluctuation Shortage gaming

13 Demand Forecast Updating Amplification of Fluctuation when ones goes up the Supply Chain Lead Time importance

14 Order batching Orders in Batches - Compulsion - Time & Cost Constraints - Transportation Problems - FTL - Full Truck Load Overlapping of Order Cycles - Leads to more variability MRP Jitters

15 Price Fluctuations Forward Buy Role of Price Fixing - Erratic Demand Variation in Buying Quantity is much bigger than the variation of the Consumption rate

16 Shortage Gaming Phantom Orders - When & Why does it Occur Examples - Motorola and its Distributors Air touch Communication & Baby Bells - IBM Aptiva Model - Assumption of Retailers

17 Counteractions One and only best Solution E-Commerce - Information Sharing - Channel Alignment - Operational efficiency - Intelligent Optimization Agents - Transaction Processing - Money Transactions

18 I2 Technologies - an efficient SCM e-Commerce system












30 Services the System Provides Direct & Indirect Procurement RFQ - (Request for Quote) Collaboration Demand Collaboration Holisitic Customer Management Buyer & Seller Services Service Providers Marketing Services

31 - Framework Front end - Portal - Customer Management - Communication Systems - Money Transactions Back end - Optimization - Transaction Processing System


33 The Process of Commerce Buyers and sellers find each other –Communication: advertising and marketing –Intermediaries (dealers, distributors, reps) Negotiation –Agents (buyers, lawyers) Transaction –Contract –Payment (or many payments)

34 The Process of Commerce Order fulfillment –Manufacture –Delivery Post-sale events –Customer service –Reorder, restock Accounting –Are we making a profit? Data analysis –Whos buying the stuff?

35 The eCommerce Process Transaction –Transaction processing, Databases –Electronic Payment Systems, –Computer Security, –System Reliability Order fulfillment –Manufacture (manufacturing systems) –Delivery (tracking systems)

36 eCOMMERCE TECHNOLOGY Networks Security Internet Electronic payment Programming Search engines Multimedia Intelligent agents Databases Data mining Transaction processing

37 The eCommerce Process Which of the steps are bittable? Buyers and sellers find each other –Communication (via Networks, the Internet, Programming and Information Retrieval) –Human-Computer Interaction, Multimedia –Intermediaries Disintermediation Negotiation –Electronic Negotiation, Intelligent agents

38 The eCommerce Process Post-sale events –Customer Service and Help Facilities –Reorder, restock Accounting –Transaction processing –Interoperability between online and legacy systems Data analysis –Data Mining

39 Ideal e-Business System Front End - Portal - Communication Systems - Interface with Mobile Devices & GPS - for access to real time info. - Money Transaction - Customer Management Systems Back End - Optimization - Decision Support Systems & Intelligent Agents - Transaction Processing System - Prioritizing Systems - Shows Contradictions - Forecasting System with Responder- Capability to match System Dynamics

40 Manufacturing Services Front End System Functions - Product Design & Quality Specification - Customer Management & Communication System - Money Transactions Back End - Standard time & Least Cost - Supply Time - Optimization - CNC Machine Code Conversion - Route data to CNC Machine would lead to total automation - paperless industry

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