Final Presentation

E-BUSINESS ü E-Business Is the conduct of business on the Internet, not only for buying and selling but also for servicing customers and collaborating with business partners. ü the use of Internet-based computing and communications to execute both front-end and back-end business processes ü The term was first used by IBM, when, in October, 1997.

ü ü

ROLE OF IT IN SUPPLY CHAIN • Has emerged as a key enabler to drive supply chain integration. • Businesses can use the Internet to gain global visibility across their extended network of trading partners and help them respond quickly to a range of variables, from customer demand to resource shortages.

SUPPLY CHAIN INTEGRATION ücoordination among supply chain members  

DIMENSIONS Information integration:

v

refers to the sharing of information among members of the supply chain.(demand data, inventory status, capacity plans, production schedules, promotion plans, and shipment schedules.

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Planning synchronization: Planning synchronization refers to the joint design and execution Synchronization of plans for product introduction, forecasting and replenishment.

vWorkflow coordination:

Workflow coordination refers to streamlined and automated workflow activities between supply chain partners. ü For example, procurement activities from a manufacturer to a supplier can be tightly coupled so that efficiencies in terms of accuracy, time, and cost, can be achieved.

vNew business models:

E-business allows partners redefine logistics flows so that the roles and responsibilities of members may change to improve overall supply chain efficiency. ü A supply chain network may jointly create new products, pursue mass customization, and penetrate new markets and customer segments. New rules of the supply chain game can emerge as a result of integration fueled by the Internet.

BENEFITS OF SUPPLY CHAIN INTEGRATION • reduced costs, • increased flexibility, • faster response times — more rapidly and effectively.

Electronic Information Integration • To ensure that a supply chain is driven by true consumer demands, information sharing is critical

Bullwhip Effect • Information distortion often arises – when partners make use of local information to make demand forecasts and pass them to upstream partners – These distortions are amplified from one level to another in a supply chain

Customer Customers Retailers

Wholesalers

Manufacturer

Suppliers

Electronic Information Integration • transparency of demand information • The Internet is an efficient electronic link between different entities 

• Approaches – Information Hub – Collaboration Profit

Information Hub • The information hub is a node in the data network where multiple organizations interact in pursuit of supply chain integration – Data Storage – Information Processing – Push/Pull publishing –

Collaborative Profit • companies that reported higher than average profits were the ones who were engaged in higher levels of information sharing. • •

New Business Models  

Once companies begin to realize the promise of e-business enabled supply chain integration, they often discover entirely new ways of pursuing

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ü Business objectives ü Developing strategies ü Business models that were neither apparent nor possible prior to the Internet.

Virtual Resources • Multiple resources in a supply chain that once acted independently can now be tapped simultaneously to satisfy special needs • • All of which can be pooled to create a secondary market of “virtual resources” 

• Examples include inventory stockpiles, untapped capacity, or even unmet demand

Supply Chain Restructuring • With the advance of information technologies, companies can also restructure the logistics flows of their products to gain efficiencies 

• Physical flows no longer have to follow information flows 

• The Internet allows information flows to substitute for some of the inefficient physical flows 

• The result: lower inventory, faster, more accurate order fulfillment, and reduced costs • • Example: CISCO

Mass Customization • The Internet enables many companies to use the Web to allow customers configure specific order options tailored to the tastes and preferences of the customers 

• Examples:  Computers (DELL)  Bicycles (VOODO) 

• RESULT: Better customer service by providing a highly cost effective level of customer service