1. E- SUPPLY CHAIN MANAGEMENT
Presented by
CHARLES.P
GUNASEKARAN.M
HARI HARA SUDHAN.R
MOHAMED ASIK.M
PRABHAKARAN.V

2. • The flow of material, information, money, and
services from raw material suppliers through
factories and warehouse to end customer
What is Supply Chain
WarehouseFactory End CustomerSupplier Distribution

3. E-Supply Chain Management
• Electronic supply chain management is most
commonly referred to as e-supply chain
management.
• It combines the concepts of electronic business
(e-business) and supply chain management
(SCM), and depicts how trade channel members
are working together to optimize resources and
opportunities

5. Elements of Supply Chain
Upstream
• 1st Tier
Supplier
• 2nd Tier
Supplier
Internal
• Manufacturing
• Packaging
Downstream
• Distribution
Center
• Retailer
• Customer
Internal Value Chain,
Manufacturing, Inventory
Control
Distribution,
Warehousing,
Transportations
Supplier Relationship
Management,
Procurement
Management

6. • Partner collaboration as strategic asset
• Information visibility
• Speed, cost, quality, and customer service
• Tightly integration
Success of Supply Chain

7. Financial Scenario
Online
Shopping
Site
SWIFT Network
Bank
Bank
Corporate
Vendor
Payments
Hub
Core
SystemConsumer
Source: Introducing Microsoft’s Integration Solution: BizTalk Server 2009
Achieving business edge through process agility

9. Electronic Opportunities
• Advancement software
• EDI
• SCM collaboration
• Demand

10. Benefits of e-SCM
• Improved Supply Chain Network
• Minimized Delays
• Reduced Costs
• Accuracy of Data

11. Supply Chain Execution
Suppliers
DC Warehouse
Inventory System
ERP System
Store
Inventory
SystemBizTalk
RFID
Stores
Retailer
Check DC Warehouse
Inventory
DC Warehouse
Business
Decision
Makers
Messaging
EDI
BAM
Re-stock Orders
Orchestration
BRE
(Filter Tags)
RFID
Source: Introducing Microsoft’s Integration Solution: BizTalk Server 2009
Achieving business edge through process agility

12. Supply Chain Activity
•Production and Distribution integration to facilitate make-to-order, and assemble to order
•Reduce inventory costing
•Eliminate stocking point
Supply Chain Replenishment
•Requisition, ordering, tracking, payment
•Improving the operation of supply chain
•Web–based functions online catalog, purchase order, and shipping notice
e-Procurement
•Using PDA in inventory entries (receiving, count, issuance)
Inventory Management using Wireless Technology
•Buyer and seller sharing demand & forecast plans
Collaboration Planning
•Web-based technology to support distribution, inventory tracking, transportation
e-Logistics

13. Supply Chain Infrastructure
• Facilitate supply chain relationships
Electronic Data Interchange (EDI)
• Corporate internal network for collaboration
Intranet
• Facilitate interorgnizational communication
Extranet
• A gateway for internal and external collaboration, and communication
Corporate Portal
• Managing the flow of information in organization
Workflow Systems and Tools

14. Operations Issues in Online Sales
• Inventory management
• Packing orders for shipment
• Delivery
• Customer returns

15. Tactics for Reducing Inventory Costs (5) Drop
Shipping
When a customer orders from Company A, some or all of the order may
be shipped by Company A's suppliers.
Customer orders
from Amazon
Order & payment
Amazon
distribution
centerFrequently ordered items
Supplier who sells a less frequently
ordered item
makes a drop shipment
Order
Ordered
item

16. Operations Issues in Online Sales
Packing Orders for Shipment
• Items are identified by bar codes or radio frequency ID
(RFID)
• Warehouse workers put ordered items in crates
• Sorter sends each item to the correct, bar-coded box for
the customer who ordered it
• Packing slip is printed
• Boxes are packed, taped, weighed
• Boxes are put on trucks for shipment to customers

17. Operations Issues in Online Sales
Customer Returns
• Objective: minimize the cost of customer returns
and reduce "hassles" for customers
– 25% of Internet orders result in a customer return
– Problems in returning goods are the 2nd biggest reason
that consumers don't buy online
• Customer usually pays for return shipping
• Variety of approaches used to return goods:
postal service, contract package delivery service,
brick-and-mortar store

18. Operations Issues in Online Sales
Customer Returns (2)
• Online retailer must ship a replacement item or
issue credit to customer
• Online retailer must process returned items
– Return defective items to supplier for a credit
– Good items can often be repackaged, priced,
and resold.

19. SAP overview of SCM

20. THANK YOU