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TRANSCRIPT
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Supply Chain Management
&eCommerce Technology
presented by:
Nachiappan Annamalai
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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
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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
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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 advantage
O Effective use of InventoryO Continuos Improvement
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Time Involved in the Process
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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
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Distribution
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Other Problems O Demand Forecast UpdatingO Order BatchingO Price FluctuationO Shortage gaming
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Demand Forecast Updating
O Amplification of Fluctuation when ones goes up the Supply Chain
O Lead Time importance
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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
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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
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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
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CounteractionsO One and only best Solution
E-Commerce- Information Sharing- Channel Alignment- Operational efficiency- Intelligent Optimization Agents- Transaction Processing- Money Transactions
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I2 Technologies - Tradematrix.com
an efficient SCM e-Commerce system
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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
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Tradematrix.com - Framework
O Front end - Portal - Customer Management - Communication Systems - Money TransactionsO Back end - Optimization - Transaction Processing System
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The Process of Commerce
O Buyers and sellers find each otherO Communication: advertising and
marketingO Intermediaries (dealers, distributors,
reps)O Negotiation
O Agents (buyers, lawyers)O Transaction
O ContractO Payment (or many payments)
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The Process of CommerceO Order fulfillment
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?
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The eCommerce ProcessO Transaction
O Transaction processing, DatabasesO Electronic Payment Systems,O Computer Security,O System Reliability
O Order fulfillmentO Manufacture (manufacturing systems)O Delivery (tracking systems)
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eCOMMERCE TECHNOLOGY
O Networks • SecurityO Internet • Electronic paymentO Programming • Search enginesO Multimedia • Intelligent agentsO Databases • Data miningO Transaction
processing
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The eCommerce Process
O Which of the steps are “bittable”?O Buyers and sellers find each other
O Communication (via Networks, the Internet, Programming and Information Retrieval)
O Human-Computer Interaction, MultimediaO Intermediaries
ODisintermediationO Negotiation
O Electronic Negotiation, Intelligent agents
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The eCommerce ProcessO Post-sale events
O Customer Service and Help Facilities O Reorder, restock
O AccountingO Transaction processingO Interoperability between online and legacy
systemsO Data analysis
O Data Mining
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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
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Manufacturing Services
O 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