nachi
TRANSCRIPT
Supply Chain Management &
eCommerce Technology
presented by:
Nachiappan Annamalai
OverviewO Supply Chain Management - WhazzitO SCM today - ProblemsO Solutions - e-CommerceO Examples of present systems -
tradematrix.com - i2 TechnologiesO e-Commerce - Application to SCM -
FrameworkO Future of SCM & e-CommerceO Suggestions
World Internet Population 3/99O World Total 158.50 MILLION
O Africa 1.14 million
O Asia/Pacific 26.97 million
O Europe 36.55 million
O Middle East .88 million
O Canada & USA 88.33 million
O South America 4.63 million
Effective SCM involvesO Managing Supply Chain as a single entityO Recognizing end user service requirements
Customer Utility = f(time, quantity, place)O Recognizing time as basis of competitive
advantageO Effective use of InventoryO Continuos Improvement
Time Involved in the Process
Effects of Time Consuming SCM
O Excessive Inventory - $ 30 Billion ( Grocery Supply Chain alone)
O Poor Product forecastO Poor Capacity PlanningO Poor Customer ServiceO High Corrective Costs - Overtime, Subcontracting,
Trans. Prob.O Optimized Supply Chain as a Whole entity - Not
PossibleO Internationalization - Not possible
Distribution
Other Problems O Demand Forecast UpdatingO Order BatchingO Price FluctuationO Shortage gaming
Demand Forecast UpdatingO Amplification of Fluctuation when ones goes
up the Supply ChainO Lead Time importance
Order batchingO Orders in Batches - Compulsion - Time & Cost Constraints - Transportation Problems - FTL - Full Truck LoadO Overlapping of Order Cycles - Leads to more
variabilityO MRP Jitters
Price Fluctuations O Forward BuyO Role of Price Fixing - Erratic DemandO Variation in Buying Quantity is much bigger
than the variation of the Consumption rate
Shortage GamingO Phantom Orders - When & Why does it OccurO Examples - Motorola and its Distributors Air touch Communication & Baby Bells - IBM Aptiva Model - Assumption of Retailers
CounteractionsO One and only best Solution
E-Commerce- Information Sharing- Channel Alignment- Operational efficiency- Intelligent Optimization Agents- Transaction Processing- Money Transactions
I2 Technologies - Tradematrix.com
an efficient SCM e-Commerce system
Services the System Provides
O Direct & Indirect ProcurementO RFQ - (Request for Quote) CollaborationO Demand CollaborationO Holisitic Customer ManagementO Buyer & Seller ServicesO Service ProvidersO Marketing Services
Tradematrix.com - Framework
O Front end - Portal - Customer Management - Communication Systems - Money TransactionsO Back end - Optimization - Transaction Processing System
The Process of CommerceO Buyers and sel lers f ind each other
O Communication: advertising and marketingO Intermediaries (dealers, distributors, reps)
O NegotiationO Agents (buyers, lawyers)
O TransactionO ContractO Payment (or many payments)
The Process of CommerceO Order fulf i l lment
O ManufactureO Delivery
O Post-sale eventsO Customer service O Reorder, restock
O AccountingO Are we making a profit?
O Data analysisO Who’s buying the stuff?
The eCommerce ProcessO Transaction
O Transaction processing, DatabasesO Electronic Payment Systems,O Computer Security,O System Reliability
O Order fulf i l lmentO Manufacture (manufacturing systems)O Delivery (tracking systems)
eCOMMERCE TECHNOLOGY
O Networks • SecurityO Internet • Electronic
paymentO Programming • Search enginesO Multimedia • Intelligent agentsO Databases • Data miningO Transaction
processing
The eCommerce ProcessO Which of the steps are “bittable”?O Buyers and sel lers f ind each other
O Communication (via Networks, the Internet, Programming and Information Retrieval)
O Human-Computer Interaction, MultimediaO Intermediaries
O DisintermediationO Negotiation
O Electronic Negotiation, Intelligent agents
The eCommerce ProcessO Post-sale events
O Customer Service and Help Facilities O Reorder, restock
O AccountingO Transaction processingO Interoperability between online and legacy systems
O Data analysisO Data Mining
Ideal e-Business SystemO Front End - Portal - Communication Systems - Interface with Mobile Devices & GPS - for
access to real time info. - Money Transaction - Customer Management SystemsO Back End - Optimization - Decision Support Systems & Intelligent Agents - Transaction Processing System - Prioritizing Systems - Shows Contradictions - Forecasting System with Responder- Capability to match System
Dynamics
Manufacturing ServicesO Front End System Functions
- Product Design & Quality Specification
- Customer Management & Communication System - Money TransactionsO Back End - Standard time & Least Cost - Supply Time - Optimization - CNC Machine Code Conversion
- Route data to CNC Machine would lead to total automation - paperless industry