Nachi

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Nachi

  1. 1. Supply Chain Management & eCommerce Technology presented by: Nachiappan Annamalai
  2. 2. Overview <ul><li>Supply Chain Management - Whazzit </li></ul><ul><li>SCM today - Problems </li></ul><ul><li>Solutions - e-Commerce </li></ul><ul><li>Examples of present systems - tradematrix.com - i2 Technologies </li></ul><ul><li>e-Commerce - Application to SCM - Framework </li></ul><ul><li>Future of SCM & e-Commerce </li></ul><ul><li>Suggestions </li></ul>
  3. 3. World Internet Population 3/99 <ul><li>World Total 158.50 MILLION </li></ul><ul><li>Africa 1.14 million </li></ul><ul><li>Asia/Pacific 26.97 million </li></ul><ul><li>Europe 36.55 million </li></ul><ul><li>Middle East .88 million </li></ul><ul><li>Canada & USA 88.33 million </li></ul><ul><li>South America 4.63 million </li></ul>
  4. 7. Effective SCM involves <ul><li>Managing Supply Chain as a single entity </li></ul><ul><li>Recognizing end user service requirements Customer Utility = f(time, quantity, place) </li></ul><ul><li>Recognizing time as basis of competitive advantage </li></ul><ul><li>Effective use of Inventory </li></ul><ul><li>Continuos Improvement </li></ul>
  5. 8. Time Involved in the Process
  6. 9. Effects of Time Consuming SCM <ul><li>Excessive Inventory - $ 30 Billion ( Grocery Supply Chain alone) </li></ul><ul><li>Poor Product forecast </li></ul><ul><li>Poor Capacity Planning </li></ul><ul><li>Poor Customer Service </li></ul><ul><li>High Corrective Costs - Overtime, Subcontracting, Trans. Prob. </li></ul><ul><li>Optimized Supply Chain as a Whole entity - Not Possible </li></ul><ul><li>Internationalization - Not possible </li></ul>
  7. 11. Distribution Warehouse 2 Warehouse 1 Retailer 1 Retailer 2 Retailer 3 Factory
  8. 12. Other Problems <ul><li>Demand Forecast Updating </li></ul><ul><li>Order Batching </li></ul><ul><li>Price Fluctuation </li></ul><ul><li>Shortage gaming </li></ul>
  9. 13. Demand Forecast Updating <ul><li>Amplification of Fluctuation when ones goes up the Supply Chain </li></ul><ul><li>Lead Time importance </li></ul>
  10. 14. Order batching <ul><li>Orders in Batches - Compulsion </li></ul><ul><li>- Time & Cost Constraints </li></ul><ul><li>- Transportation Problems - FTL - Full Truck </li></ul><ul><li>Load </li></ul><ul><li>Overlapping of Order Cycles - Leads to more variability </li></ul><ul><li>MRP Jitters </li></ul>
  11. 15. Price Fluctuations <ul><li>Forward Buy </li></ul><ul><li>Role of Price Fixing - Erratic Demand </li></ul><ul><li>Variation in Buying Quantity is much bigger than the variation of the Consumption rate </li></ul>
  12. 16. Shortage Gaming <ul><li>Phantom Orders - When & Why does it Occur </li></ul><ul><li>Examples </li></ul><ul><li>- Motorola and its Distributors </li></ul><ul><li>Air touch Communication & Baby Bells </li></ul><ul><li>- IBM Aptiva Model - Assumption of Retailers </li></ul>
  13. 17. Counteractions <ul><li>One and only best Solution </li></ul><ul><li>E-Commerce </li></ul><ul><li>- Information Sharing </li></ul><ul><li>- Channel Alignment </li></ul><ul><li>- Operational efficiency </li></ul><ul><li>- Intelligent Optimization Agents </li></ul><ul><li>- Transaction Processing </li></ul><ul><li>- Money Transactions </li></ul>
  14. 18. I2 Technologies - Tradematrix.com an efficient SCM e-Commerce system
  15. 30. Services the System Provides <ul><li>Direct & Indirect Procurement </li></ul><ul><li>RFQ - (Request for Quote) Collaboration </li></ul><ul><li>Demand Collaboration </li></ul><ul><li>Holisitic Customer Management </li></ul><ul><li>Buyer & Seller Services </li></ul><ul><li>Service Providers </li></ul><ul><li>Marketing Services </li></ul>
  16. 31. Tradematrix.com - Framework <ul><li>Front end </li></ul><ul><li>- Portal </li></ul><ul><li>- Customer Management </li></ul><ul><li>- Communication Systems </li></ul><ul><li>- Money Transactions </li></ul><ul><li>Back end </li></ul><ul><li>- Optimization </li></ul><ul><li>- Transaction Processing System </li></ul>
  17. 33. The Process of Commerce <ul><li>Buyers and sellers find each other </li></ul><ul><ul><li>Communication: advertising and marketing </li></ul></ul><ul><ul><li>Intermediaries (dealers, distributors, reps) </li></ul></ul><ul><li>Negotiation </li></ul><ul><ul><li>Agents (buyers, lawyers) </li></ul></ul><ul><li>Transaction </li></ul><ul><ul><li>Contract </li></ul></ul><ul><ul><li>Payment (or many payments) </li></ul></ul>
  18. 34. The Process of Commerce <ul><li>Order fulfillment </li></ul><ul><ul><li>Manufacture </li></ul></ul><ul><ul><li>Delivery </li></ul></ul><ul><li>Post-sale events </li></ul><ul><ul><li>Customer service </li></ul></ul><ul><ul><li>Reorder, restock </li></ul></ul><ul><li>Accounting </li></ul><ul><ul><li>Are we making a profit? </li></ul></ul><ul><li>Data analysis </li></ul><ul><ul><li>Who’s buying the stuff? </li></ul></ul>
  19. 35. The eCommerce Process <ul><li>Transaction </li></ul><ul><ul><li>Transaction processing, Databases </li></ul></ul><ul><ul><li>Electronic Payment Systems , </li></ul></ul><ul><ul><li>Computer Security , </li></ul></ul><ul><ul><li>System Reliability </li></ul></ul><ul><li>Order fulfillment </li></ul><ul><ul><li>Manufacture (manufacturing systems) </li></ul></ul><ul><ul><li>Delivery (tracking systems) </li></ul></ul>
  20. 36. eCOMMERCE TECHNOLOGY <ul><li>Networks • Security </li></ul><ul><li>Internet • Electronic payment </li></ul><ul><li>Programming • Search engines </li></ul><ul><li>Multimedia • Intelligent agents </li></ul><ul><li>Databases • Data mining </li></ul><ul><li>Transaction processing </li></ul>
  21. 37. The eCommerce Process <ul><li>Which of the steps are “bittable”? </li></ul><ul><li>Buyers and sellers find each other </li></ul><ul><ul><li>Communication (via Networks , the Internet , Programming and Information Retrieval ) </li></ul></ul><ul><ul><li>Human-Computer Interaction , Multimedia </li></ul></ul><ul><ul><li>Intermediaries </li></ul></ul><ul><ul><ul><li>Disintermediation </li></ul></ul></ul><ul><li>Negotiation </li></ul><ul><ul><li>Electronic Negotiation , Intelligent agents </li></ul></ul>
  22. 38. The eCommerce Process <ul><li>Post-sale events </li></ul><ul><ul><li>Customer Service and Help Facilities </li></ul></ul><ul><ul><li>Reorder, restock </li></ul></ul><ul><li>Accounting </li></ul><ul><ul><li>Transaction processing </li></ul></ul><ul><ul><li>Interoperability between online and legacy systems </li></ul></ul><ul><li>Data analysis </li></ul><ul><ul><li>Data Mining </li></ul></ul>
  23. 39. Ideal e-Business System <ul><li>Front End </li></ul><ul><li>- Portal </li></ul><ul><li>- Communication Systems - Interface with Mobile Devices & GPS - for access to real time info. </li></ul><ul><li>- Money Transaction </li></ul><ul><li>- Customer Management Systems </li></ul><ul><li>Back End </li></ul><ul><li>- Optimization </li></ul><ul><li>- Decision Support Systems & Intelligent Agents </li></ul><ul><li>- Transaction Processing System </li></ul><ul><li>- Prioritizing Systems - Shows Contradictions </li></ul><ul><li>- Forecasting System with Responder- Capability to match System Dynamics </li></ul>
  24. 40. Manufacturing Services <ul><li>Front End System Functions </li></ul><ul><li>- Product Design & Quality Specification </li></ul><ul><li>- Customer Management & Communication System </li></ul><ul><li>- Money Transactions </li></ul><ul><li>Back End </li></ul><ul><li>- Standard time & Least Cost </li></ul><ul><li>- Supply Time </li></ul><ul><li>- Optimization </li></ul><ul><li>- CNC Machine Code Conversion </li></ul><ul><li>- Route data to CNC Machine </li></ul><ul><li>would lead to total automation - paperless industry </li></ul>

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