BSAD 372 - CH 6

Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
Part 2
Strategy and applications
Chapter 6
Supply chain and demand
Digital Business and E-Commerce
Management
Seventh Edition

Learning outcomes
• Identify the main elements of supply chain
management and e-procurement
• Assess the potential of information systems to
support supply chain management and e-
procurement
• Analyse procurement methods to evaluate cost
savings

Management issues
• Which technologies should we deploy for supply
chain management e-procurement and how
should they be prioritised?
• Which elements of the supply chain should be
managed within and beyond the organisation
and how can technology be used to facilitate
this?
• Which method(s) of e-procurement should we
adopt?
• What are the practical issues with online supply
chain management and e-procurement?

Figure 6.3 Members of the supply chain: (a)
simplified view; (b) including intermediaries

SCM – some definitions
• Supply chain management (SCM) The coordination
of all supply activities of an organisation from its
suppliers and partners to its customers
• Upstream supply chain Transactions between an
organisation and its suppliers and intermediaries,
equivalent to buy-side e-commerce
• Downstream supply chain Transactions between
an organisation and its customers and intermediaries,
equivalent to sell-side e-commerce

Table 6.2 Objectives and strategies for
effective consumer response (ECR)

Figure 6.5 A typical supply chain
for a B2B company

Figure 6.6 Push and pull approaches
to supply chain management

Figure 6.6 Push and pull approaches
to supply chain management
(Continued)

Source: Adapted from Deise et al. (2000) Figure 6.4(b).
Figure 6.7 Two alternative models of the
value chain: (a) traditional value chain
model; (b) revised value chain model

Source: Adapted from Deise et al. (2000).
Figure 6.8 Members of the value
network of an organisation

Figure 6.9 The characteristics of vertical
integration, vertical disintegration and
virtual integration

Figure 6.10 A typical IS infrastructure for
supply chain management

Figure 6.11 Alternative strategies for modification
of the digital business supply chain

How important is procurement?
• ‘We estimate that for every dollar a company
earns in revenue, 50 cents to 55 cents is spent
on indirect goods and services – things like office
supplies and computer equipment.
• That half dollar represents an opportunity: By
driving costs out of the purchasing process,
companies can increase profits without having
to sell more goods.’ Hildebrand (2002)

The five rights of e-procurement
• At the right price
• Delivered at the right time
• Are of the right quality
• Of the right quantity
• From the right source
Baily et al. (1994)

Figure 6.2 Key procurement
activities within an organisation

Table 6.5 Process flow analysis for traditional
procurement (typical cycle time, 5.5 days)
Note: See Table 6.6 on p. 285 for key to symbols

Table 6.6 Process flow analysis for new
e-procurement (typical cycle time, 1.5 days)

Figure 6.14 Use of different information systems
for different aspects of the Fulfilment cycle

Figure 6.15 The three main e-procurement
model alternatives for buyers

Figure 6.16 Integration between
e-procurement systems and catalogue data

Summary
• You should be able to identify the main
elements of supply chain management and
e-procurement
• You should be able to assess the potential of
information systems to support supply chain
management and e-procurement
• You should be able to analyse procurement
methods to evaluate cost savings

BSAD 372 - CH 6

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to BSAD 372 - CH 6

Similar to BSAD 372 - CH 6 (20)

More from Janice Robinson

More from Janice Robinson (20)

Recently uploaded

Recently uploaded (20)

BSAD 372 - CH 6