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E-commerce COM380
E-commerce
Lecture 5
Supply chain management
and E-procurement
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E-commerce COM380
E-commerce
Objectives
By the end of the lecture students should: – Appreciate the main elements of supply chain
management
– Appreciate the potential of information systems to support supply and value chain management
– Appreciate the benefits and risks of e-procurement
– Appreciate the integration options with IS and e-procurement suppliers
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E-commerce COM380
E-commerce
Supply chain management• What is it?
• Options
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E-commerce COM380
E-commerce
Supply chain management• Internal value chain
• External value chain
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E-commerce COM380
E-commerce
Logistics
• Inbound logistics
• Outbound logistics
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E-commerce COM380
E-commerce
Supply chain models
• Push supply chain
• Pull supply chain
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E-commerce COM380
E-commerce
Value chain
• Within each element
• At interface between elements
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E-commerce COM380
E-commerce
Internal value chain weakness
• Applicable to manufacturing
• One-way chain
• No emphasis on importance of networks
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E-commerce COM380
E-commerce
Value stream
• Problem solving task
• Information management task
• Physical transformation task
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E-commerce COM380
E-commerce
Value chain analysis
• Five step analysis
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E-commerce COM380
E-commerce
Value networks• Supply-side partners• Partners filling core value chain
activities• Sell-side partners• Value chain integrators
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E-commerce COM380
E-commerce
Value networks• Electronic interconnections
• Dynamic nature of network
• Varied partner links
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E-commerce COM380
E-commerce
Virtual organisation
• Processes transcend boundaries
• Production processes flexible
• Geographical dispersal
• Telecommunications
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E-commerce COM380
E-commerce
Restructuring the supply chain
• Vertical integration
• Virtual integration
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E-commerce COM380
E-commerce
Restructuring the supply chain
• Increased efficiency• Reduced complexity• Improved data integration• Reduced cost• Innovation
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E-commerce COM380
E-commerce
IS supported supply chain• Upstream supply chain management
• Downstream supply chain management
• Outbound logistics management
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E-commerce COM380
E-commerce
IS infrastructure• Supply chain visibility
• Managing the supply chain
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E-commerce COM380
E-commerce
SCM strategy process• Managing partnerships
• Managing global distribution
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E-commerce COM380
E-commerce
Managing global distribution• Select distributors
• Select distributors capable of developing markets
• Treat local distributors as long-term partners
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E-commerce COM380
E-commerce
Managing global distribution• Support market entry
• Control marketing strategy
• Obtain detailed data from distributors
• Build links
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E-commerce COM380
E-commerce
E-procurement
• What is it?
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E-commerce COM380
E-commerce
E-procurement• At the right price• Delivery at the right time• Are of the right quality• Of the right quantity• From the right source
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E-commerce COM380
E-commerce
Types of procurement
(what is bought)• Production-related procurement
• Non-production-related procurement
• MRO goods
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E-commerce COM380
E-commerce
Types of procurement
(how it is bought)• Systematic sourcing
• Spot sourcing
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E-commerce COM380
E-commerce
E-procurement
• Drivers
• Reduced purchasing cycle time and cost
• Enhanced budgetary control
• Elimination of administrative errors
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E-commerce COM380
E-commerce
E-procurement Aims• Increasing buyers’ productivity
• Lowering prices
• Improving information management
• Improving the payment process
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E-commerce COM380
E-commerce
E-procurement outcomes• Cost savings
• Impact on profitability
• Risks and impacts
• Technology risks
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E-commerce COM380
E-commerce
E-procurement
• Implementation
• System integration
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E-commerce COM380
E-commerce
E-procurement
• Electronic B2B marketplaces
• Types of marketplace– Systematic sourcing
– Spot sourcing
– Metamediaries
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E-commerce COM380
E-commerce
E-procurement
• Automated E-purchasing
• Software agents
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E-commerce COM380
E-commerce
Objectives– Appreciate the main elements of supply chain
management– Appreciate the potential of information systems
to support supply and value chain management – Appreciate the benefits and risks of e-
procurement– Appreciate the integration options with IS and
e-procurement suppliers