E-SUPPLY CHAIN MANAGEMENT

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E-SUPPLY CHAIN MANAGEMENT Powered By Docstoc
					Prepared for B. Com 4th Semester, 2012
                   St. Xavier’s College




                 IT DEPT, B.COM,
             ST. XAVIER'S COLLEGE
Concept and Definition




                 IT DEPT, B.COM,
             ST. XAVIER'S COLLEGE
What is a supply chain?


 Supply chain is a “process umbrella” under
  which products are created and delivered to
  customers.
 It includes suppliers, manufacturers,
  distributors, retailers and customers. It also
  includes transporters and warehouses.
 In essence, it consists of all parties involved,
  directly or indirectly, in fulfilling a customer’s
  request.

                         IT DEPT, B.COM,
                     ST. XAVIER'S COLLEGE
What is supply chain
management?
   Supply chain management is the co-
    ordination of entities, activities,
    information and resources involved in
    moving a product or service from
    supplier to customer; where entities
    consist of manufacturers, service
    providers, distributors and retail outlets.



                          IT DEPT, B.COM,
                      ST. XAVIER'S COLLEGE
    In other words, supply chain
    management means transforming
    company’s “supply chain” into an
    optimally efficient, customer-satisfying
    process, where the effectiveness of the
    whole supply-chain is more important
    than the effectiveness of each individual
    department.


                         IT DEPT, B.COM,
                     ST. XAVIER'S COLLEGE
What is e-supply chain
management?
 When the co-ordination for managing the
  supply chain takes place by using Internet
  technologies it is known as e-supply chain
  management.
 Inter-enterprise integration is a major focus
  of e-supply chain management.



                        IT DEPT, B.COM,
                    ST. XAVIER'S COLLEGE
Major Features of SCM




                IT DEPT, B.COM,
            ST. XAVIER'S COLLEGE
 Supply chain management is identified
  by the following features:
 1. Material flow.
 2. Financial flow.
 3. Information flow.




                      IT DEPT, B.COM,
                  ST. XAVIER'S COLLEGE
   1. Material flow. It is in the direction
    from supplier to customer through the
    chain. It involves procurement of the
    materials, transformation of these
    materials into finished products and
    distribution of these finished products to
    the customers.



                          IT DEPT, B.COM,
                      ST. XAVIER'S COLLEGE
   2. Financial flow. It involves payment
    options, credit card information, credit
    terms, payment schedule etc. It is in the
    direction from customer to supplier as
    payment for products or services
    originates from customer and end at
    supplier.



                         IT DEPT, B.COM,
                     ST. XAVIER'S COLLEGE
   3. Information flow. In today’s e-
    supply chain management flow of
    information is considered to be as
    significant as the flow of material and
    finance. It involves product information,
    demand forecasts, order status report,
    delivery report, customers’
    communication, etc. Information is
    always two-way, particularly in e-
    business.

                         IT DEPT, B.COM,
                     ST. XAVIER'S COLLEGE
Inter-enterprise Integration and
Types of Supply Chain




                  IT DEPT, B.COM,
              ST. XAVIER'S COLLEGE
Inter-enterprise integration
 Enterprise  integration means when
  different functions of an enterprise are
  integrated into one. But supply chain
  management is moving toward inter-
  enterprise integration.




                      IT DEPT, B.COM,
                  ST. XAVIER'S COLLEGE
 Different components of a supply chain like
  supplier, manufacturer, retailer, etc. are
  separate enterprises. These enterprises
  create a collaborative system for inter-
  enterprise integration.
 In this system, each component of a supply
  chain has access to required information. As
  a result, inventory tends to zero and just-in-
  time (JIT) management can be introduced.
  So, inter-enterprise integration brings down
  inventory cost, as well as production and
  distribution costs.

                       IT DEPT, B.COM,
                   ST. XAVIER'S COLLEGE
Types of supply chain for inter-
enterprise integration
   Responsive: This kind of supply chain
    responds quickly and accurately to
    customer’s needs. ATP(available to
    promise) is an important feature of this
    responsiveness. ATP systems provide
    real-time integrated checks throughout
    the entire supply chain.



                         IT DEPT, B.COM,
                     ST. XAVIER'S COLLEGE
 Adaptive: This kind of supply chain can
  rapidly be reconfigured to adapt to
  changing consumer demand. Adaptive
  supply chain helps the companies to
  respond to changing business
  conditions and consumer requirement.
 Intelligent: It is a dynamic kind of
  supply chain and continuously fine-
  tuned to perform well.

                      IT DEPT, B.COM,
                  ST. XAVIER'S COLLEGE
E-Supply Chain Planning




                IT DEPT, B.COM,
            ST. XAVIER'S COLLEGE
Major components of e-supply
chain
   Advanced scheduling and
    manufacturing planning: It provides detail
    co-ordination of all manufacturing and
    supply efforts based on individual customer
    orders. Scheduling is based on real-time
    analysis of changing constraints throughout
    the process, from equipment
    malfunctioning to supply interruptions.
    Scheduling also creates job schedules for
    managing the manufacturing process as
    well as logistics.

                          IT DEPT, B.COM,
                      ST. XAVIER'S COLLEGE
   Demand forecasting: This module
    supports a range of statistical tools and
    business forecasting techniques. It takes
    into account changing market scenarios
    and economic factors while making
    decisions.




                         IT DEPT, B.COM,
                     ST. XAVIER'S COLLEGE
   Transportation planning: This
    programme facilitates resource
    allocation and execution to ensure that
    materials and finished goods are
    delivered at the right time and at the
    right place, according to the planning
    schedule at a minimal cost. It considers
    such variable as transportation mode
    like railways, trucks, airlines, and
    availability of each mode.

                         IT DEPT, B.COM,
                     ST. XAVIER'S COLLEGE
   Distribution planning: This is
    integrated with demand forecasting,
    manufacturing schedule and
    transportation planning to reach the
    customer. This module addresses
    customer-specified requirements.




                         IT DEPT, B.COM,
                     ST. XAVIER'S COLLEGE
   Order commitment: It is a system that
    allows vendors to accurately quote
    delivery dates to customers by providing
    real-time detailed visibility into the entire
    fulfillment cycle. Order commitment is
    linked to all other modules so that
    accurate delivery of goods and services
    can be guaranteed.


                           IT DEPT, B.COM,
                       ST. XAVIER'S COLLEGE
E-supply chain fusion




                 IT DEPT, B.COM,
             ST. XAVIER'S COLLEGE
What is E-supply chain fusion?

 Process of  e-supply chain fusion
  involves the migration from existing
  non-integrated supply chain to more
  effective integrated supply chain and
  thereby creating a tightly woven supply
  chain.




                       IT DEPT, B.COM,
                   ST. XAVIER'S COLLEGE
Four stages of supply chain
fusion
   Stage I - Information sharing: Well-
    established and effective communication
    channel is required at the 1st stage. For
    example, the consumers can interact
    effectively with the entire enterprise from
    a single store or Website.




                          IT DEPT, B.COM,
                      ST. XAVIER'S COLLEGE
 Stage II – Joint performance
 measurement: Key challenges
 include creating performance
 measurement and developing a clear
 understanding of the costs and
 benefits involved in supply chain
 integration. Collaborative planning
 processes are created in this stage.

                    IT DEPT, B.COM,
                ST. XAVIER'S COLLEGE
   Stage III – Realignment of work:
    Through the process of collaboration
    decision-making is decentralized and
    work load is shared among the
    enterprises.




                        IT DEPT, B.COM,
                    ST. XAVIER'S COLLEGE
   Stage IV – Redesigning products and
    processes: Products are processes are
    redesigned so that work becomes easier
    and more efficient. A major challenge is
    to include the entire supply chain in the
    interenterprise process reengineering
    efforts.



                         IT DEPT, B.COM,
                     ST. XAVIER'S COLLEGE
Management issues in e-supply
chain fusion
   1. Determining the right e-supply
    chain structure: Need for cost-
    efficiency does not permit to maintain a
    large inventory of finished products for
    the customers. Market demands may
    change and the price-structure may also
    undergo changes. For this reason, it is
    important to maintain the right kind of e-
    supply chain structure to ensure right
    product at the right time.

                         IT DEPT, B.COM,
                     ST. XAVIER'S COLLEGE
   2. Enabling effective differentiation
    capabilities: Organizations develop
    strategies for competitive differentiation,
    offering customers something unique
    that the competition does not have.
    Differentiation is in terms of products
    and services and also in terms of
    performance standard. Build-to
    order(BTO) business models are used
    for this purpose.

                          IT DEPT, B.COM,
                      ST. XAVIER'S COLLEGE
   3. Facilitating effective order-
    fulfillment capabilities: Accurate order-
    fulfillment is challenging and offers a
    great opportunity for reducing costs and
    improving customer service
    simultaneously. An integrated supply
    chain is critical to order fulfillment.
    Effective supply chain management
    configures the chain to respond to order.

                         IT DEPT, B.COM,
                     ST. XAVIER'S COLLEGE
   4. Determining the right infrastructure
    capabilities: Creation of a real-time
    supply chain management infrastructure
    is a major task for an organization.
    Planning, selection and implementation
    of SCM solutions is becoming more
    complex with the change of technology
    and with the increase of the number of
    business partners of a company.

                        IT DEPT, B.COM,
                    ST. XAVIER'S COLLEGE

				
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posted:5/23/2012
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