1. Logistics and / or Fulfillment Models
Many traditional catalog companies already had an LFM System in place when they adopted e-business model.
Catalogers’ telephone based fulfillment systems, originally designed to accommodate individual customer, were ideally suited to e-commerce.
Catalog retailers have lowest backorder rate.
E-business has taken a different route generally followed in distribution channels.
GM is plotting web site to sell cars & others also.
Internet accelerates pace of change
Online market places for small to onidsize e-business
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2. E-Market Place E market places are replacing the E-business Market place
Technology Platform Engine
Indirect Direct
Arbs Aderxs
Oracle i2
Industry
Centric
Exchanges Auto
Foods
Retail
Chem
E-tail
B2B
B2B market opportunity
$1.4 trillion by 2003
2000
1000
500
0.03
0.02
.01
.00
.99
1500
Market Makers
Vertical
Verticullet
Chemdex / Ventric
MRO.Com
Publishers Pro.Com
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3. E-Market Place might be implemented by
A trade organization to aggregate its members’ orders from approved suppliers by providing online procurement services
A new market maker that is trying to replace existing distribution channels by offering online information and services to a specific industry.
A large distributor who seeks to automate processes among several buyers, suppliers or manufacturers
A third party service providers who wants to create a common market place by providing hosted procurement services to a specific set of suppliers and their customers.
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4. E-Market Places Impact every element of the E-Business Supply Chain
B2B
E-tail
Product
Development
Supplier
Mgmt.
Transport
Whose
&
Inventory
Mgt.
Category
Store
Product
Dev. Mgt.
E-Procure-
ment
Software
Supply
Chain
Mgt.
Category
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5. Benefits of a Digital Marketplace
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6. It channels all potential customers to distributors
B2B Sponsored Model
Has a brochureware web site sporting a full product catalog online customer service
It channels all potential customers to distributors
Actual commerce takes place at distributor’s site.
Shipment takes place from distributor
Girard Equipment Inc. is an example
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7. Manufacturers Model
Manufacturer’s adoption of a business allows it to provide virtual environment for demand management and logistical services
It allows access to suppliers and customer to its production scheduling, manufacturing planning and forecasting data.
A list of changes in demand are sent by to suppliers, manufacturing plans who in turn update reports
Master production schedule is published on web site of customers
Company reduced working capital by reducing inventory
Response time should be fast
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8. Vendor Managed Inventory Model
Vendor manages inventory
Reduces company overheads
Reduces costs throughout value chain
E-business vendors track the number of products shipped to distributors and retail outlets
VMI uses EDI technology, VANs
Manufacturer’s have not integrated VMI with their internal ERP systems because software vendors have not built interfaces
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9. Extended Enterprise Model
The Cisco solution fuzes entire value chain-partners, suppliers, manufacturers, distributors, retailers, customers and Cisco’s internal operations.
Faster inventory turns and short cycle
Improved customer satisfaction
Flexibility in design, ramp
Ability to sustain product quality
Reduced inventory by 45%
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10. Common Order fulfillment and manufacturing challenges
Demand Information
Customer Orders, Specs
Market Research
Competitive Information
Customer feedback
Regulatory Constraints, etc.
Suppliers
Planning
Purchasing
Scheduling
Customer
Service
Manufacturing
Process
Distribution
Customers
WIP/FGI Status
Material Receipts
Shipment Sched.
Lot/Reg. Tracking
Quality Data
Supplier’s ASNs
Supply Information
Inbound
Supply Chain
Logistics
Internal
Supply
Chain
Outbound
Common Order fulfillment and manufacturing challenges
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11. Back end Systems Secure Transaction Engine Manufacturing Partners
Customer Mfg Order
Support Entry
Manufacturing
Partners
Company
Intranet
Secure
Transaction
Engine
Employee
Mfg.Info
External
Info.
Internet
Customer
Extranet/
VPN
Firewall
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12. Direct-Fulfillment Model
1. Materials flow from contract manufacturers.
2. They are connected by network to have same look of product
3. Third party logistics providers
4. Reduced inventories, labour costs and shipping expenses.
5. 97% of products ship on promised delivery date
6. 75% of orders by customers are placed online.
7. Reduces cycle time from 6-8 weeks to 1-3 weeks
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13. Direct-Fulfillment Model shifts some of the fulfillment duties to the manufacturer
Customer
Order
Secure
Transaction
Engine
E-business
order
Manufacturer
Delivery
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14. E-Tail Model
E-tail business necessitates easy to use catalog and shopping cart that enables customers to brouser for products, choose products and
Click by a button
Integrate warehouse, inventory to perform fulfillment function
Automated shipping, real time tracking of the package
Disappointments on e-tail sites
a) Product received was not exactly what they thought.
b) E-tailer has not made aware of total price when order is placed
c) Product delivery was late
d) E-tailer’s return policy and service commitments are not met.
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15. Product / Service Development Management
Supply Chain
Demand Chain
Customers
Supply
Plan
Demand
Real Time
Order Mgt.
Direct
Personalised
Sales
B2B
E-Tail
Business Strategy
Suppliers
Partners
Product / Service Development Management
Electronic Commerce
E-Business Enablement
Knowledge Management and Business
Procurement
Scheduling
Distribution
Logistics
Customer
Service
Chain
Management
Enterprise
Resource
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16. Model of the Future E-business will be part of organizations business
All e-business will be multichannel distributions
Website is an extension of office
Moving customers to the internet from catalog and shop by phone orders reduces expenses
It can create a unified pricing and promotion
e-business will be built on newer technologies
Bluelight.com Internet operation has 4 million customers
Drivers for repeat business are :
a) Ensuring secure transactions
b) Having bricks and mortar stores in which to view products
c) Making it easy to return goods
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17. Multi Channel e-business Model
Suppliers
Customer
e-tail
Brick
Kiosk
Catalogue
Bricks & Mortars
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