Improving the Supply Chain Cycle Through E-commerce

Nestor M. LimDoctor in Information Technology StudentSt Paul University Philippineslimnestor@consultant.com

Agenda

• Definition of Terms• Overview of the present situation• Identifying opportunities for improvement• Addressing through e-commerce• Conclusions and Recommendations• Questions• References

DEFINITION OF TERMS

Supply Chain Management

• Supply Chain Management is “the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities” (Dr Robert Handfield)

Supply Chain Cycle

OVERVIEW OF THE PRESENT SITUATION

Present Scenario

• Our company provides BPO-IT services and consulting work to local and foreign customers.

• Since our company is not a manufacturing company, it wears the hat of the customer most of the time in the supply chain cycle

• The company source out the items it needs for operation from various suppliers

Present Scenario

• Among the items that the company acquires regularly includes office supplies, computing hardware and software, furnitures, office appliances, and administrative and general services.

• The services that we provide our customers include software development, infrastructure, database administration, and technical support.

Present Scenario

• As a customer, the company has relationship with various suppliers or vendors such as Integrated Computer Systems (ICS), Office Warehouse, etc.

• Communication with suppliers are done via email, phone and fax of purchase orders.

Present Scenario

• Product delivery from our suppliers is through the suppliers own distribution team or via third party carriers such as LBC, 2GO, and others

Present Scenario

• The company deliver its services to the customers through the public cloud or internet.

IDENTIFYING OPPORTUNITIES FOR IMPROVEMENT

Opportunities for Improvement

• Having a facility where we know how much a particular product to order at any point in time will make our supply chain process a lot smarter

Opportunities for Improvement

• Getting real time quotes from more suppliers of a specific category of products would help the company get the best price value during purchasing.

Opportunities for Improvement

• Getting notified of new suppliers in the market for hard to find product category would mitigate the risk of us running out of supplies.

ADDRESSING THROUGH E-COMMERCE

Enterprise Resource Planning

• Using an online enterprise resource planning software in order to do forecasting and planning of stocks to purchase from suppliers and automating the purchasing process would greatly reduce over stocking or running out of supplies

Supplier Portals

• An e-commerce system that interconnects the various suppliers that provides the items that we need and having a facility for these suppliers to provide real time quotes on items would ensure a smarter supply chain process

Supplier Portals

• The online supplier portal can also serve as a place where new players or suppliers can make proposals and hence mitigate the risk of under stocking hard to find items.

CONCLUSIONS AND RECOMMENDATIONS

Conclusions

• Having a comprehensive e-commerce system that supports ERP systems and supplier portals would definitely make the supply chain cycle of the company a lot smarter and this means that we would be able to mitigate supply chain risks as well as get the best value for our money.

• This will give the company a strategic edge over its competitors.

Recommendations

• Present to top management the importance of e-commerce on planning purchases and interconnecting suppliers via the portal.

• Plan out how this can be achieved in the next few months.

• Identify other opportunities to improvement along the way of implementing the proposed changes above.

QUESTIONS?

References

• Handfield, R. (2011, Jan 11) What is Supply Chain Management? The SCRC Articles Library. Retrieved from http://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management

• Supply Chain Cycle. Retrieved from http://www.youtube.com/watch?v=DXxCPgJ75QY&feature=related

• The Smarter Supply Chain of the Future. Retrieved from http://www.youtube.com/watch?v=FY6tgqEc1qo&NR=1

• Global Value Chain. Retrieved from http://www.youtube.com/watch?NR=1&v=y3NbdwnKWIM

Thank You