© farhan mir 2015 ims electronic commerce bba (hons) ( (e-supply chains, collaborative commerce, )...

© Farhan Mir© Farhan Mir

20201515 IMSIMS

Electronic CommerceElectronic Commerce

BBA (Hons) BBA (Hons) ((E-Supply Chains,Collaborative Commerce,and Intrabusiness EC))

By: Farhan MirBy: Farhan Mir


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How General Motors Is How General Motors Is Collaborating OnlineCollaborating Online

The ProblemInformation regarding a new car design has to be shared among a pool of approximately 20,000 designers and engineers in hundreds of divisions and departments at 14 GM design labs, some of which are located in different countriesCommunication and collaboration with the design engineers of the more than 1,000 key suppliers could mean 4 years to completion of a model


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How General Motors Is How General Motors Is Collaborating Online Collaborating Online

The SolutionGM began by examining over 7,000 existing GM began by examining over 7,000 existing legacy IT systems, reducing that number to legacy IT systems, reducing that number to about 3,000 and making them Web enabled about 3,000 and making them Web enabled

A computer-aided design (CAD) program that A computer-aided design (CAD) program that allows 3D design documents to be allows 3D design documents to be shared online shared online by both the designers (internal and external) and by both the designers (internal and external) and engineers engineers Collaborative and Web conferencing software tools Collaborative and Web conferencing software tools have radically changed the vehicle review processhave radically changed the vehicle review processGM electronically sends its specifications for the GM electronically sends its specifications for the seat to the vendor’s product data system allowing:seat to the vendor’s product data system allowing:

SearchingDesigningTooling

Testing in real time


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How General Motors Is How General Motors Is Collaborating Online Collaborating Online (cont.)(cont.)

This expedites the process and cuts costs This expedites the process and cuts costs by more than 10%by more than 10%The ResultsThe Results

It now takes less than 18 months to bring a new car to market

The change has produced enormous savings

Shorter cycle time enables GM to bring out more new car models more quickly, providing the company with a competitive edge

What we can learn…What we can learn…Applications of EC that help reduce costs and increase profits

collaborative commerce

improvements along the supply chain

B2E


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E-Supply ChainsE-Supply ChainsThe success of organizations depends on their ability to manage the flow of materials, information, and money into, within, and out of the organizationSupply chain involves activities that take place during the entire product life cycle including the movement of information, money and individuals involved in the movement of a product or a service

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:E-supply chain: A supply chain that is managed A supply chain that is managed electronically, usually with Web technologieselectronically, usually with Web technologies


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E-Supply Chains E-Supply Chains (cont.)(cont.)


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E-Supply Chains E-Supply Chains (cont.)(cont.)

Supply chain partsUpstream supply chain

activities of a manufacturing company with its suppliers

Internal supply chainin-house processes for transforming the inputs from the suppliers into the outputs

Downstream supply chainactivities involved in delivering the products to the final customers

Managing supply chainsE-supply chain management (e-SCM): E-supply chain management (e-SCM): The collaborative The collaborative use of technology to improve the operations of supply use of technology to improve the operations of supply chain activities as well as the management of supply chain activities as well as the management of supply chainschains


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E-Supply ChainsE-Supply Chains

The success of an e-supply chain depends on:

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

Information visibility along the entire supply chain

Speed, cost, quality, and customer service

Integrating the supply chain segments more tightly


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Supply Chain Problems Supply Chain Problems and Solutionsand Solutions

Typical problems along the supply chain

Slow and prone to errors because of the Slow and prone to errors because of the length of the chain involving many length of the chain involving many internal and external partnersinternal and external partners

Large inventories without the ability to Large inventories without the ability to meet demandmeet demand

Insufficient logistics infrastructureInsufficient logistics infrastructure

Poor quality Poor quality


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Supply Chain Problems Supply Chain Problems (cont.)(cont.)

Bullwhip effect: Erratic shifts in orders up and down supply chains

Creates Creates production and inventory problemsStockpiling can lead to large inventories

Effect is handled by information sharing—collaborative commerce


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Supply Chain ProblemsSupply Chain ProblemsNeed for information sharing along the supply chain including issues on:

product pricing

inventory

shipping status

credit and financial information

technology news

Information systems are the links that enable communication and collaboration along the supply chain

Information and information technology are one of the keys to the success, and even the survival in today’s economy


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Supply Chain Problems Supply Chain Problems

Major solutions provided by an EC approach and technologies

Order takingOrder fulfillmentElectronic paymentsInventories can be minimizedCollaborative commerce


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Collaborative CommerceCollaborative 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


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Major benefits are: cost reduction, increased revenue, better customer retentionAs a result of:

fewer stock outs

less exception processing

reduced inventory throughout the supply chain

lower materials costs

increased sales volume

increased competitive advantage


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Collaborative CommerceCollaborative Commerce (cont.)(cont.)

Collaboration can be done both between and within organizations.

Collaborative platform can help in communication and collaboration between

headquarters and subsidiaries

franchisers and franchisees

The platform provides around the globee-mail

message boards and chat rooms

online corporate data access


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Information sharing between retailers and suppliers: P&G and Wal-Mart

Wal-Mart provides P&G access to sales information on every item P&G makes for Wal-MartAccomplished done electronically

P&G has accurate demand informationWal-Mart has adequate inventory


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Collaborative CommerceCollaborative Commerce Example: Target Example: Target

Retailer–supplier collaboration: Target Corporation

Conducts EC activities with 20,000 trading partnersExtranet enables Target to reach many more partners, and to use applications not available on the traditional EDIBusiness customers create personalized Web pages


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Collaborative CommerceCollaborative Commerce Example: CaterpillarExample: Caterpillar

Reduction of product development time: Caterpillar, Inc.

Cycle time along the supply chain was long because the process involved the transfer of paper documents among managers, salespeople, and technical staffImplemented an extranet-based global collaboration system


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Collaborative CommerceCollaborative Commerce (cont.)(cont.)

Barriers to c-commerce—lack of defined and universally agreed-on standards

technical reasons involving integration, standards, and networks

security and privacy concerns over who has access to and control of information stored in a partner’s database

internal resistance to information sharing and to new approaches

lack of internal skills to conduct collaborative commerce


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Collaborative Planning Collaborative Planning and Fulfillmentand Fulfillment


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Internal Supply Solutions, Internal Supply Solutions, Intrabusiness, and B2EIntrabusiness, and B2E

Intrabusiness EC: E-commerce activities conducted within an organization

Business-to-employee (B2E): Intrabusiness EC in which an organization delivers products or services to its employees


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Internal Supply Solutions, Internal Supply Solutions, Intrabusiness, and B2E Intrabusiness, and B2E (cont.)(cont.)

Activities between business unitsLarge corporations consist of independent units, called strategic business units (SBUs)—transactions can be easily automated and performed over the organization’s intranetSpecial network may be constructed to support communication, collaboration, and execution of transactions


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Integration along the Supply Integration along the Supply Chain Example: Toshiba USAChain Example: Toshiba USA

Toshiba created a Web-based order entry system for product parts using an extranet and intranets

Dealers can place orders for parts until Dealers can place orders for parts until 5:00 P.M. for next-day delivery without 5:00 P.M. for next-day delivery without extra charge extra charge Dealers can check accounts receivable Dealers can check accounts receivable balances and pricing arrangements and balances and pricing arrangements and read service bulletins, press releases, and read service bulletins, press releases, and so on so on Sales reps can interact more effectively Sales reps can interact more effectively with dealerswith dealers


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Integration along the Supply Chain Integration along the Supply Chain Example: Toshiba USA (cont.)Example: Toshiba USA (cont.)


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Corporate (Enterprise) PortalsCorporate (Enterprise) Portals

Corporate (enterprise) portal: A gateway for entering a corporate Web site, enabling communication, collaboration, and access to company informationCorporate portals offer employees, business partners, and customers an organized focal point for their interactions with the firm


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Corporate (Enterprise) Portals Corporate (Enterprise) Portals (cont.)(cont.)

Types of corporate portalsGeneric portalsGeneric portals

portal for suppliersportal for customersportal for employeessupervisor portalsmobile portals—accessible via mobile devices, especially cell phones and PDAs


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Collaboration-Enabling Tools: Collaboration-Enabling Tools: Group Decision Support Group Decision Support Systems Systems (GDSS)(GDSS)Virtual meetings: Online meetings whose members are in different locations, frequently in different countries Group decision support system (GDSS): An interactive computer-based system that facilitates the solution of semistructured and unstructured problems by a group of decision makers


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Collaboration-Enabling Tools: Collaboration-Enabling Tools: GDSS GDSS (cont.)(cont.)

Major characteristics of a GDSSIts goal is to support the process of group decision makers by providing automation of subprocesses using information technology toolsIt is a specially designed information systemIt encourages generation of ideas, resolution of conflicts, and freedom of expression


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Collaboration-Enabling Tools: Collaboration-Enabling Tools: GDSS GDSS (cont.)(cont.)GDSSs improve the decision-making process by:

providing structure to the planning processsupport parallel processing of information and idea generationmake larger meetings possible


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Collaboration-Enabling Tools:Collaboration-Enabling Tools:TeleconferencingTeleconferencing

Teleconferencing: The use of electronic communication that allows two or more people at different locations to have a simultaneous conferenceVideo teleconference: Virtual meeting in which participants in one location can see participants at other locations on a large screen or a desktop computer


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Collaboration-Enabling Tools Collaboration-Enabling Tools (cont.)(cont.)Interactive white boards

Another type of groupware where all participants join in the useUsers can view and draw on a single document “pasted” onto the electronic whiteboard on a computer screenUsers can save digital whiteboarding sessions for future use


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Collaboration-Enabling Tools Collaboration-Enabling Tools (cont.)(cont.)

Screen sharing: 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


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Managerial IssuesManagerial Issues

1. How difficult is it to introduce e-collaboration?

2. How much can be shared with business partners? Can they be trusted?

3. Who is in charge of our portal and intranet content?

4. Who will design the corporate portal?5. Should we conduct virtual meetings?

© farhan mir 2015 ims electronic commerce bba (hons) ( (e-supply chains, collaborative commerce, )...

Documents

supply chain segments

supply chain partners

end customersesupply

entire supply chainspeed

servicesupply chain

organizationsupply chain

design engineers

new car design