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Electronic Supply Chain Management

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supply chain management

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Electronic Supply Chain Management

  2. 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. 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
  4. 4. 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
  5. 5. • Partner collaboration as strategic asset • Information visibility • Speed, cost, quality, and customer service • Tightly integration Success of Supply Chain
  6. 6. 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
  7. 7. Electronic Opportunities • Advancement software • EDI • SCM collaboration • Demand
  8. 8. Benefits of e-SCM • Improved Supply Chain Network • Minimized Delays • Reduced Costs • Accuracy of Data
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. Operations Issues in Online Sales • Inventory management • Packing orders for shipment • Delivery • Customer returns
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16. 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.
  17. 17. SAP overview of SCM
  18. 18. THANK YOU