1. Slide 6.1 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Supply chain management Chapter 6

2. Slide 6.2 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Learning outcomes Identify the main elements of supply chain management and their relationship to the value chain and value networks Assess the potential of information systems to support supply chain management and the value chain.

3. Slide 6.3 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Management issues Which technologies should we deploy for supply chain management and how should they be prioritized? Which elements of the supply chain should be managed within and beyond the organization and how can technology be used to facilitate this? What are the practical issues with online supply chain management?

4. Slide 6.4 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 SCM – some definitions Supply chain management (SCM) The coordination of all supply activities of an organization from its suppliers and partners to its customers Upstream supply chain Transactions between an organization and its suppliers and intermediaries, equivalent to buy-side e- commerce Downstream supply chain Transactions between an organization and its customers and intermediaries, equivalent to sell-side e- commerce

5. Slide 6.5 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 SCM – some definitions What’s Supply Chain Management? –The design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally. -APICS Dictionary, http://en.wikipedia.org/wiki/Supply_chain_managementhttp://en.wikipedia.org/wiki/Supply_chain_management

6. Slide 6.6 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.1 (a) Benefits of supply chain management, (b) realization of benefits. Note respondents could select all benefits that apply Source: PMP (2008)

7. Slide 6.7 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.1 (a) Benefits of supply chain management, (b) realization of benefits. Note respondents could select all benefits that apply (Continued) Source: PMP (2008)

8. Slide 6.8 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.2 Members of the supply chain: (a) simplified view, (b) including intermediaries

9. Slide 6.9 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 SCM Mini Case Study Read the Mini Case Study 6.1 on pp. 331-332 and discuss these questions: 1.How did Premier Farnell manage its supply chain? 2.What can e-business/e-commerce do with SCM? 3.What a role did IT played in Premier Farnell’s SCM? 4.What can we learn from this case study?

10. Slide 6.10 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Table 6.2 Objectives and strategies for effective consumer response (ECR)

11. Slide 6.11 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.3 Inter-organizational process flow for introduction of a new product Source: excerpted from Toward the interorganisational product information supply chain – evidence from the retail and consumer goods industry by C. Legner and J. Schemm © 2008. Used with permission from Association for Information Systems, Atlanta, GA, 404-713-7444, www.aisnet.org. All rights reserved. http://www.allbusiness.com/technology/computer- networks-electronic-data-interchange/10593039-1.htmlhttp://www.allbusiness.com/technology/computer- networks-electronic-data-interchange/10593039-1.html

12. Slide 6.12 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.4 BluescopeSteelConnect transactional site (www.bluescopesteelconnect.com)

13. Slide 6.13 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 SCM Trends Read the Box 6.3 on p. 339 to discuss these questions: 1.What are the two fundamental principles presented by Braithwaite? 2.What are the three key points observed by Braithwaite? 3.What would be the future of SCM?

14. Slide 6.14 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.5 A typical supply chain for a B2B company

15. Slide 6.15 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 SCM Case Study Read the Case Study 6.1on pp. 341-345 and answer questions on p.345. 1.What is the key features of SIMON? 2.What improvement did Elemica produced over SIMON?

16. Slide 6.16 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.6 Elemica trading platform (www.elemica.com)

17. Slide 6.17 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Push and Pull SCM Push SCM—emphasis distribution product to passive customers Pull SCM—emphasis delivery of values to customers who actively involved in product and service specification

18. Slide 6.18 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.7 Push and pull approaches to supply chain management

19. Slide 6.19 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.7 Push and pull approaches to supply chain management (Continued)

20. Slide 6.20 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Value Chain A model that considers how supply chain activities can add value to products and services delivered to the customer. A tradition value chain model was proposed by Porter in 1980 A new value chain model was proposed by Deise et all in 2000

21. Slide 6.21 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.8 Two alternative models of the value chain: (a) traditional value chain model, (b) revised value chain model Source: Figure 6.4(b) adapted from Deise et al. (2000)

22. Slide 6.22 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Value Chain Analysis A framework that decomposes an organization into its individual activities and determines value added at each stage. Activities can be divided into 3 categories –Create value as perceived by customers –Create no value but required by product development/production –Those that don’t add value at all.

23. Slide 6.23 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Value Chain Networks Also called external value chain—The link between an organization and its strategic and non-strategic partners that form its external value chain.

24. Slide 6.24 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.9 Members of the value network of an organization (adapted from Deise et al. 2000)

25. Slide 6.25 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Restructuring Supply Chain A SCM can be viewed from control perspective-internal and external. Vertical integration—supply chain activities are undertaken and controlled by the organization Virtual integration—majority of supply chain activities are undertaken and controlled by third party

26. Slide 6.26 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.10 The characteristics of vertical integration, vertical disintegration and virtual integration

27. Slide 6.27 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Use e-Business to Restructuring Supply Chain E-business can help provide the right information to the right entity at the right time in a secure manner. Adoption rate of e-business—not high particular not in SMEs REID (Radio Frequency Identification Microchip) and SCM

28. Slide 6.28 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.11 E2open (www.e2open.com)

29. Slide 6.29 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.12 Popularity of different e-business applications in Europe according to company size Source: European Commission (2008)

30. Slide 6.30 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Case Study Read the case study on pp. 363-364 and discuss the question on p. 364

31. Slide 6.31 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.13 A typical IS infrastructure for supply chain management

32. Slide 6.32 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 SCM Implementation Data standardization and exchange Read the Box 6.5. –What is GDSN? –What are the steps for partners to exchage information?

33. Slide 6.33 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 SCM Strategy Process SOSTAC approach—ref.p.371, Table 6.3 Managing Partnerships –It’s advised that a company should Focus on core competencies Reduce their number of suppliers Develop strong partnership relationships –Strategic options for partnerships Ref. p. 373, table 6.4

34. Slide 6.34 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Figure 6.14 Alternative strategies for modification of the e-business supply chain

35. Slide 6.35 Dave Chaffey, E-Business and E-Commerce Management, 4 th Edition, © Marketing Insights Limited 2009 Case Study Read the Case Study on pp. 374-375 Use a industry of your choice to evaluate the benefits and risks of applying REID in the sector