1. Chapter 6 E- SCM

2. E-Supply Chains
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

3. 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

4. E-Supply Chains Management (E-SCM)
Managing supply chains
E-supply chain management (e-SCM): The collaborative use of technology to improve the operations of supply chain activities as well as the management of supply chains

5. 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

6. Push and pull approaches to supply chain management
Figure 6.3  Push and pull approaches to supply chain management

7. Push and pull approaches to supply chain management
Figure 6.3  Push and pull approaches to supply chain management

8. 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

9. 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

10. 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

11. 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—collaborative commerce

12. Supply Chain Problems (cont.)
Need for information sharing along the supply chain including issues on:
product pricing
inventory
shipping status
credit and financial information
technology news

13. 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

14. Supply Chain solutions (cont.)
Major solutions provided by an EC approach and technologies
Order taking
Order fulfillment
Electronic payments
Inventories can be minimized
Collaborative commerce

15. Virtual Organizations (VOs)
‘simply, it is an organizational form that enables companies to reduce their physical assets (large headquarters, centralised plants and so on), relying instead on small decentralised units linked by a strong communications network. In other words, the old physical constraints of the plant and office building are broken down, and activities of co-ordination and control, which used to take place face-to-face, are now handled remotely 'over the wire'.’

16. VO characteristics
Lack of physical structure: virtual organisations have little or no physical existence.
Reliance on knowledge: the lack of physical facilities and contacts means that knowledge is the key driving force of the virtual organisation.
Use of communications technologies: it follows that virtual organisations tend to rely on information technology.
Mobile work: the reliance on communications technologies means that the traditional office or plant is no longer the only site where work is carried out. Increasingly, the office is wherever the worker is.
Boundaryless and inclusive: virtual companies tend to have fuzzy boundaries.
Flexible and responsive: virtual organisations can be pulled together quickly from disparate elements, used to achieve a certain business goal and then dismantled again.

17. Benefits of applying IS to SCM
Increased efficiency of individual processes.
Benefit: reduced cycle time and cost per order Reduced complexity of the supply chain.
Benefit: reduced cost of channel distribution and sale.
Improved data integration between elements of the supply chain.
Benefit: reduced cost of paper processing.
Reduced cost through outsourcing.
Benefits: lower costs through price competition and reduced spend on manufacturing capacity and holding capacity. Better service quality through contractual arrangements?
Innovation.
Benefit: Better customer responsiveness.

18. Benefits to buying company
Increased convenience through 24 hours a day, 7 days a week, 365 days ordering.
Increased choice of supplier leading to lower costs.
Faster lead times and lower costs through reduced inventory holding.
The facility to tailor products more readily.
Increased information about products and transactions such as technical data sheets and order histories.

19. A typical IS infrastructure for supply chain management
Figure 6.11  A typical IS infrastructure for supply chain management