Lesson 06E-Supply Chains and

Collaborative Commerce

ISM 41113, Electronic CommerceBy:

M. Fathima Rashida

Lecturer in MIT

Department of MIT

Faculty of Management and Commerce, SEUSL

Learning Objectives

1. Define the e-supply chain and describe its characteristics and components.

2. List supply chain problems and their causes.

3. List solutions provided by e-commerce (EC) for supply chain problems.

4. Describe RFID supply chain applications.

5. Define c-commerce and list the major types.

6. Describe collaborative planning and collaboration, planning, forecasting, and replenishing (CPFR) and list the benefits of each.

7. Discuss integration along the supply chain.

8. Understand corporate portals and their types and roles.

9. Describe e-collaboration tools such as workflow software and groupware.

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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

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Manufacturers

Suppliers Distributers & Customers

E-Supply Chains

• SUPPLY CHAIN PARTS

• Upstream supply chain

Activities of a company with its suppliers and their connections with their suppliers

• Internal supply chain and value chain

Includes all in-house processes used in transforming the inputs received from the suppliers into the organization's output

• Downstream supply chain

Includes all the activities involved in delivering the products to the final customers

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E-Supply Chains

• Supply Chain Management (SCM)A complex process that requires the coordination of many activities so that the shipment of goods and services from supplier right through to customer is done efficiently and effectively for all parties concerned. SCM aims to minimize inventory levels, optimize production and increase throughput, decrease manufacturing time, optimize logistics and distribution, streamline order fulfillment, and overall reduce the costs associated with these activities

Information technology provides two types of software solution:

1.SCM (including e-procurement)2.Enterprise resources planning system (ERP) (including e-

business infrastructure, data warehouses)

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E-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• E-SCM is not about technology change alone ; it also involves

change in management policies, organizational culture, performance metrics, business process, and organizational structure across the supply chain

Success of an e-supply chain is depends on followings:

• The ability of all supply chain partners to view partner collaboration as a strategic assets

• A well-defined supply chain strategy

• Information visibility along the entire supply chain

• Speed, cost, quality and customer service

• Integrating the supply chain more tightlyISM 41113 7

E-Supply Chains

• Activities and Infrastructure of e-SCME-supply chain management process and activities include the following:

• Supply Chain Replenishment

• e-procurement

• Supply Chain Monitoring and Control Using RFID

• Inventory Management Using Wireless Devices

• collaborative planning

• Collaborative Design and Product Development

• E-Logistics

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E-Supply Chains

• Infrastructure for e-SCM

• EDI

• Extranets

• Intranets

• Corporate portal

• Workflow systems and tools

• Groupware and other collaborative tools

• Identification and tracking tools

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Supply Chain Problems and Solutions

• TYPICAL PROBLEMS ALONG THE SUPPLY CHAIN• bullwhip effect

Erratic shifts in order up and down supply chains

• Need for information sharing along the supply chain

• EC SOLUTIONS ALONG THE SUPPLY CHAIN• Visibility

• Order taking through internet

• Order fulfillment

• electronic payments

• Managing risk

• Inventories can be minimized

• Collaborative commerce

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RFID as a Key Enabler in Supply Chain Management

• Radio Frequency Identification (RFID)

Tags that can be attached to or embedded in objects, animals, or humans and use radio waves to communicate with a reader for the purpose of uniquely identifying the object or transmitting data and/or storing information about the object

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RFID as a Key Enabler in Supply Chain Management

• LIMITATIONS OF RFID

• Cost

• Interference and accuracy

• Limited range in passive RFID

• Environment restrictions on usage

• Privacy

• CONCERNS OF RFID

Following are some concerns regarding customer privacy and RFID tags:

• the customer buying an item with an RFID tag may not be able to remove the tag or may unaware that an RFID tag is attached t the item

• The presence of a tag might mean that it would still be capable of being read from some distance away without the knowledge of the purchaser or user of that item

• If a purchase is made using a credit card, then the potential exists for the tag details to be linked directly to the personal details of the credit card holder

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Collaborative Commerce

• Collaborative Commerce (C-commerce)The use of digital technologies that enable companies to collaboratively plan, design, develop, manage, and research products, services, and innovative EC applications

• Collaboration Hub (C-hub)One of the most popular forms of c-commerce is the collaboration hubsThe central point of control for an e-market. A single c-hub, representing one e-market owner, can host multiple collaboration spaces (c-spaces) in which trading partners use c-enablers to exchange data with the c-hub

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Collaborative Commerce

• Examples of E-Collaboration

• vendor-managed inventory (VMI)

The practice of retailers’ making suppliers responsible for determining when to order and how much to order

• Retailer–Supplier Collaboration: Target Corporation

• Lower Transportation and Inventory Costs and Reduced Stock-Outs: Unilever

• Reduction of Design Cycle Time: Clarion Malaysia

• Reduction of Product Development Time: Caterpillar, Inc.

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Collaborative Planning, CPFR, APS, and PLM

• Collaborative Planning, Forecasting, And Replenishment (CPFR)

Project in which suppliers and retailers collaborate in their planning and demand forecasting to optimize flow of materials along the supply chain

The goal of CPFR is to streamline product flow from manufacturing plants all he way to customer’ home

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Collaborative Planning, CPFR, APS, and PLM

• Advanced Planning And Scheduling (APS) systemsPrograms that use algorithms (such as linear programming) to identify optimal solutions to complex planning problems that are bound by constraints such as limited machine capacity or labor

• Product Lifecycle Management (PLM)Business strategy that enables manufacturers to control and share product related data as part of product design and development efforts and support of supply chain

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Supply Chain Integration

• HOW INFORMATION SYSTEMS ARE INTEGRATED

• Integration divided into two parts:

1. Internal integration

2.External / with business partners integration

• Web Services

An architecture enabling assembly of distributed applications from software services and tying them together

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Corporate (Enterprise) Portals

• corporate (enterprise) portal

A gateway for entering a corporate Web site, enabling communication, collaboration, and access to company information

Corporate portals provide a single point of access to information and application available on the intranets and extranets of a specific organization

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Corporate (Enterprise) Portals

• TYPES OF (GENERIC) CORPORATE PORTALS

• Portals for Suppliers and Other Partners

• Customer Portals

• Employee Portals

• Executive and Supervisor Portals

• mobile portals

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Corporate (Enterprise) Portals

• The Functionalities of Portals from

• Information Portals

Portals that store data and enable users to navigate and query the data

• to collaborative portals

Portals that allow collaboration

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Corporate (Enterprise) PortalsCORPORATE PORTAL APPLICATIONS AND ISSUES

Top portal applications are:

• Knowledge bases and learning tools

• Business process support

• Customer facing sales

• Marketing

• Services

• Collaboration and project support

• Access to data from disparate corporate system

• Personalized pages for various users

• Effective search and indexing tools

• Security applications

• Best practices and leesons learned

• Directories and bulleting boards

• Identification of experts

• News

• Internet access

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Collaboration-Enabling Environments And Tools

• WorkflowThe movement of information as it flows through the sequence of steps that make up an organization’s work procedures

• Workflow SystemsBusiness process automation tools that place system controls in the hands of user departments to automate information processing tasks

• Workflow ManagementThe automation of workflows, so that documents, information, and tasks are passed from one participant to the next in the steps of an organization’s business processISM 41113 32

Collaboration-Enabling Environments And Tools

• COLLABORATION AND GROUPWARE: SOME BASIC CONCEPTS• Groupware

Software products that support groups of people who share common tasks or goals and collaborate on their accomplishment

• Virtual TeamA group of employees using information and communications technologies to collaborate from different work bases– Mass Collaboration

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Collaboration-Enabling Environments And Tools

• ELECTRONIC MEETING SYSTEMS: FACE-TO-FACE SUPPORT AND VIRTUAL MEETINGS• Virtual Meetings

Online meetings whose members are in different locations, even in different countries

• Group Decision Support System (GDSS)An interactive computer-based system that facilitates the solution of semi structured and unstructured problems by a group of decision makers

• Decision Theater

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Collaboration-Enabling Environments And Tools

• REAL-TIME COLLABORATION TOOLS FOR VIRTUAL MEETINGS

• Screen-sharing Software

Software that enables group members, even in different locations, to work on the same document, which is shown on the PC screen of each participant

• Sharing Documents and Workspaces

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Collaboration-Enabling Environments And Tools

• ELECTRONIC TELECONFERENCING

• Teleconferencing

The use of electronic communication that allows two or more people at different locations to have a simultaneous conference

• Video Teleconference

Virtual meeting in which participants in one location can see participants at other locations on a large screen or a desktop computer

• Data Conferencing

Virtual meeting in which geographically dispersed groups work on documents together and exchange computer files during videoconferences

• Web ConferencingISM 41113 36

Collaboration-Enabling Environments And Tools

• Collaboration 2.0The technology and tools used for collaboration in the Web 2.0 world and in Enterprise 2.0 that are in sync with social networking and user-generated content

The major technologies used in Collaboration 2.0 follow:• Collaborative Workspace

An interconnected environment in which all the participants in dispersed locations can access and interact with each other just as inside a single entity

• Instant Messaging

Technologies that create the possibility of real-time text-based communication between two or more participants over the Internet/intranet

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Collaboration-Enabling Environments And Tools

• Presence Information

Status indicator that conveys ability and willingness of a potential communication partner

• voice-over-IP (VoIP)

Communication systems that transmit voice calls over Internet Protocol–based networks

• Blogs, Wikis, Virtual Worlds, Forums, and Other Tools

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End of the Chapter

MIT32056 E-Commerce 39