E-supply chain management

1. E-Supply chain management
Presented by
Parit Ahuja
Ashish Jain
Prabakaran N

2. Agenda
 What is e-SCM
 Why use of technology
 Issues in implementation
 Research Methodology for Evaluation
 Various Researches on E-SCM adopted be different
business sectors

3. e- SCM
 The flow of material, information, money, and
services from raw material suppliers through factories
and warehouse, to end customer.
 The collaborative use of technology to improve the
operations of supply chain activities as well as the
management of supply chains.

4. Supply chain for Denim Jeans

6. Why use technology
 Inventory levels: Firms keep track of their existing
and needed inventory levels as the system can
provides early warning signs when that product is
running low.
 Minimizing Bullwhip effect: The collaboration
present with electronic supply chain management can
go a long way in minimizing the “bullwhip” effect, the
distortion of demand forecasts along a supply chain
resulting from inaccurate or inadequate information.

7. ……
 Long-term relationship: As firms open themselves, and
their information, up to each other they are forced to align
their own strategies and goals.
 Speed: Speed and ability to communicate can be seen
throughout the supply chain.
 Cost: Decrease in cost of communication, carrying
inventory and customer service.
 Other: improved customer relationship, eliminates stock
outs, encourages customer driven demand, and efficiency
in tracking of delivery

8. Issues
 Commitment: A firm must be committed to using the
system, foregoing past methods of conducting business,
such as phone, fax, and written record, and instead relying
on the automated supply chain system.
 Involvement of all parties: The benefits of technology
must be conveyed to all parties involved.
 Data accuracy: The benefits can only be accrued through
the accuracy of the data entered into and the consistent
usage of the system.

9. …….
 Sharing of information: The more information is shared among
organization, the more it will be beneficial.
 Over reliance: Many have found that their supply chain
strategies do not work when forced to respond to unexpected
events. As inventory levels are minimized, there is less safety
stock to handle emergencies. This emergency can come in many
forms; a delayed shipment, a broken down truck, a jump in
demand, a natural disaster. Unable to adapt to change, these
supply chain systems are inaccurate and put their firm at a
disadvantage.

10. Critiques:
Research Model
•L
•S
•Focus
•C
•S
•B
•L
•S
•PR
•A
•L
•M
•N
Company Orientation
Pages
Focus &
Function

11. B2B &B2C
•Marketing
•Catalog and Product information
B2B
•Inventory
•Logistics
B2C
•Customer personalization
•Order tracking
Contd…
Functions

12.  Effective Communication between Customers and
Suppliers
 Valid for companies under consideration
 Not a comprehensive guide
 Extent of public information (X or PW)
 Free
 Premium
Research Assumptions

13.  Little correlation between firms’s revenues and
expectations.
 Size Advantage
 Insight on how smaller firms could effectively
Summary – Findings of Research

14. Key Factors Considered:
 Consistent among all players.
 Focus on both parties of business
 Pricing Model
 Information on all dealers and inventories
 No online purchase
Automotive manufacturers

15. Key Factors Considered:
 A broad network where the exchange of past problems
and resolutions as well as scorecards on supplier
performance in obtained.
 Ability to build contracts and current production
information.
 Employees to access company’s intranet from remote
location.
 Supplier websites also provides link to third party sites to
serve them better
Automotive Suppliers

16. Build to Forecast and Build to delivery

17. Supply chain management in toyota
vendor manufaktur dealer customer
1. Local parts
2. Import parts
(3)Receiving dock  pc storeproduction (4)dealer (5)customer
PC store ProductionReceiving
Dock
Dealer
Local Parts
Local Parts
• 1 and 2 Linked between internal and vendor
STOCK REDUCTION USING KANBAN ( Kanban Cyclic ) & SEQUENTIAL PARTS DELIVERY
KANBAN:- A small time that is the key cotrol for JIT production

18. Topology of Systematic SCM management

20. Cumulative Research Results

21. Key Factors considered:
 Plenty of content designed for consumer including
product and pricing information.
 Degree of customization and personalization.
 Pricing and promotions differ for different users.
 HP – Hard Deck, for authorized dealers and sellers.
 Gateway - e-Marketplace, provides virtual exchange
for buyers and sellers.
Technology – E-commerce

22. Gateway’s Business model shift paradigm

23. Gateway’s Business activities

24. Cumulative Research results

25.  Design—web, HTML etc.
 E-commerce application development
 Application support
 Operations—mainly managing the relationship with
Exodus, which hosts Gateway.com
 Quality assurance
 Strategy R&D group—Their job is to track new
technologies and develop strategies to take
advantage of new capabilities.
Organisation of E-commerce

26. Performance of E-commerce

27.  Provides personalized shopping experiences for
customers - Customer Focus
 Large amount of information and data.
 Excellent response time – Reflection of efficient
supply chain.
 Account and access through secured credentials.
 Amazon.com
Technology -dot-coms

28.  Make the right offer at the right time
 Optimize your up-sell and cross-sell success
 Fully customize the checkout
 Utilize a complete history of customer interactions
Volume on conversions
• Generate more online revenue
• Elevate stickiness
• Increase brand awareness
Shopping – Experience

29. More Visitors to Customers
 Track and optimize
 Easily test and refine content
 Optimize conversions
 Identify and target visitors
Contd…

30. Amazon.com User Personalized page

31. Cumulative Research results

32. Financial Services - Banking
 Offered services for individuals, small businesses and large
corporations
 Some form of Account
 Accessed by password
 Access financial Information
 Wells Fargo offered a spectrum of financial services
including e-brokerage , business portal (accounts
receivables , financial software)
 Goldmann Sachs & Co. offered high volume E-trading
through brokerages via FIX

33. Financial Services – Banking (Contd..)
 Bank One and National City
 Offered the usual personal banking services
 Highly diversified in the amount of options that they
provide to their customers
 Means to further eliminate paper from the world of
international trade
 Electronic facilitation of the process – use of imaging
and workflow engines , not paper and checks

34. Axis Bank – eSCM
 The Bank provides holistic funding solution to the
supply chain of corporates
 Products cater to the funding needs of supply chain
members
 Increased efficiency of the entire chain
 Service delivery is through a technology platform to
increase transactional convenience for the corporate

35. Axis Bank – eSCM Model
Dealer Financing
Factoring of
Receivables
Purchase Invoice
financing
Rent receivable
Financing
Model

36. Axis Bank – eSCM Model(Contd..)
 Dealer Financing : provide financing facility to the dealers
exclusively for their purchases made from that corporate
 Factoring of Receivables : helps the corporate in boosting
its sales and managing receivables
 Purchase Invoice Financing : provide financing to the
vendors of a particular corporate against supplies made to
that corporate . It helps in developing a strong and reliable
vendor base
 Rent Receivable Financing : designed for companies
involved in renting out goods . The loans are advanced
against future rent receivables

37. Financial Services – Investment
 Offered spectrum of services
 Discount trading
 Variety of financial services to private investors and
employers
 Secured data transfer
 Customer accounts ( offered by all )
 Discount brokerages
 Ameritrade and Etrade concentrated on providing services
to individual investors and stock info
 Ameritrade makes a 10 second guarantee

39. Cumulative Research results

40. Retail – General Merchandise
 Many web sites offered tremendous e-commerce
ability but little in the realm of services for their
suppliers
 Wal-Mart offers :
 Normal range of retail items
 Online pharmacy
 Order tracking
 Vacation packages
 Internet Service provider

41. Wal-Mart Supply Chain Management
 Finest example of supply chain management
 Prices are low and their shelves are well stocked
 Legendary Inventory Replenishment system triggered
by point-of-sale purchases

43. Retail Clothing
 Primarily customer driven
 Most have some e-commerce capability
 Very little provided for the suppliers
 Aside from the type of clothing, there was very little
differentiation among these clothing websites

44. ZARA SCM Model
 Short Lead time = More fashionable clothes
 Lower Quantities = Scarce supply leads to higher
demands
 More Style = More choice , and more chances of
hitting it right
 Zara Fact : Consumers in London visit the average
store four times annually , but zara’s customers visit
its shops at an average of 17 times a year

45. ZARA SCM Model(Contd..)
 The company spends almost nothing on
advertisement and uses the savings to support higher
cost of production
 The tight integration of design , planning ,
merchandising and production enables the company
to be flexible
 By forecasting demand accurately , it has led to well
managed inventories , higher profitability and value
creation for shareholders

46. Retail Electronics Websites
 Offered tremendous e-commerce ability
 Product information, promotions and order tracking
were readily available
 highly promotional offering usual weekly coupon
flyers as well as special online deals
 Circuit City – Express pick up option

47. Best Buy SCM Model
 Set out to change its logistics strategy by offering
small , more intimate shopping environments with a
cleaner look
 Reduced its transportation expenses by 30 percent
per shipment in the stores that were remodeled
 The changes helped the store work more efficiently
and effectively
 Named Nasstrac’s shipper of the year

48. Cumulative Research results

49. Transportation – Air Websites
 Highly focussed on their customers
 None of the sites held supplier information
 Offer flight availability, flight and baggage tracking ,
and logistics information for travel agents
 Consistent with each other , offering similar features
and services

50. American Airlines

51. Transportation – Rail Websites
 Offered extensive logistics and tracking services for
their customers
 Union Pacific – the only railroad offering web services
for its suppliers
 The Company offered web invoicing, routing
information, and information on how to become a
supplier.

52. Union Pacific Railroad SCM

53. Transportation – Package delivery
 Companies examined offered e-commerce, order
tracking and logistics services
 UPS offered wireless solutions and web services
along with some basic services
 Western Union was primarily customer focused
 the site did offer online payment options and
information for its nationwide agents.

54. Union Parcel Service

55. Conclusion (e-SCM)
 Supply chain management has been growing in importance with
firms concentrating on internal processes to the web-linking of
supply chain partners.
 Firms have been pressed to increase their operational
efficiencies to stay competitive.
 Some of the benefits include
 lower inventory levels,
 quicker response to problems
 higher quality levels
 higher customer satisfaction
 more diverse product offerings