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SUPPLY CHAIN MANAGEMENT
IN E-COMMERCE
OSM CLUB
IIM KASHIPUR
Supply chain management

plan
source
make

deliver
return
The E-Commerce Supply Chain
 Supply chain management is a key value chain

composed of:


Demand planning



Supply planning



Demand fulfillment
Supply Chain Management

4
The E-Commerce Supply Chain

 E-commerce supply chain management allows

businesses an opportunity to achieve:


Increased revenues and decreased costs



Improved customer satisfaction



Inventory reduction across the supply chain
SCM – some definitions
 Supply chain management (SCM) The

coordination of all supply activities of an organization
from its suppliers and partners to its customers.
 Upstream supply chain Transactions between an
organization and its suppliers and intermediaries,
equivalent to buy-side e-commerce.
 Downstream supply chain Transactions between
an organization and its customers and intermediaries,
equivalent to sell-side e-commerce.
Members of the supply chain
(a) simplified view (b) including intermediaries
A typical supply chain
(an example from the B2B company)
Push and pull approaches to
supply chain management
Push and pull approaches to
supply chain management
Two alternative models of the
value chain.

(a) traditional value chain model, (b) revised value chain model
A typical IS infrastructure for
supply chain management

A typical IS infrastructure for supply chain management
Alternative strategies for
modification of the e-business supply chain

Alternative strategies for modification of the e-business supply chain
E Commerce-SCM Models
B2B E-Commerce
 Business to Business (B2B) e-commerce – when a business

sells products and services to customers who are primarily other
businesses:





Where all the e-commerce money is
Basically, it’s about businesses doing business with other businesses
Supply chain management is a big part of B2B e-commerce
B2B take full advantage of e-commerce by creating and using e-marketplaces





E-Marketplaces are virtual marketplaces where companies buy and sell products to each
other, share information, and perform other important activities
This is one of the fastest growing trends in the B2B e-commerce model

Example: A firm selling car components to a car manufacturer
B2C E-Commerce
 Business to Consumer (B2C) e-commerce – when a business

sells products and services to customers who are primarily
individuals.




B2C is the glitzy e-commerce like iTunes, Amazon, eBay, etc
Focused on consumer items – books, music, computers, etc
Consumers interact very differently with the web than in the B2B ecommerce model





Consumers surf around the web evaluating products and services until they
eventually choose one site from which to make a purchase
Businesses prefer to enter into long term partnerships with other partnerships
in the B2B model, but consumers are more fickle and purchase the same types
of products from many different sites

The B2C model is a very cut-throat environment with many different
competitors trying to drive down costs
S4  scm in e-commerce
http://www.youtube.com/watch?v=zknLfU7GJIw
C2B E-Commerce
 Consumer to Business (C2B) e-commerce – when an

individual sells products and services to a business


True economic inversion of the B2C model








In B2C, demand is driven by the consumer and supply driven by the business
In C2B, this is reversed – with business driving demand, and consumers driving supply

Fotolia is a good example (www.fotolia.com)
There you can post photos and videos and businesses will pay you a royalty to use
them (if they like what you offer)
You can also advertise businesses on your personal Web site (called an affiliate
program) and receive monies for visitors who jump from your site to the business’
Web sites



Amazon pay royalties to individuals who advertise amazon on their site.
Also opportunities here for good blogging web-sites
C2C E-Commerce
 Consumer to Consumer (C2C) e-commerce – when an

individual sells products and services to another individual.



You selling to another person (or the reverse)
Usually occurs through an intermediary such as eBay







eBay is a hybrid of B2C and C2C
It facilitates consumers (B2C) to sell products to each other (C2C)

Many C2C web sites don’t really support any sort of e-commerce (i.e.
money changing hands for products and services)
Rather the facilitate people coming together with common interests


www.Mp3fusion.net – people who share music, etc
Reverse Logistics
Reverse Logistics
THANK YOU

http://www.youtube.com/watch?v=h7tHK
wYEZIk

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S4 scm in e-commerce

  • 1. SUPPLY CHAIN MANAGEMENT IN E-COMMERCE OSM CLUB IIM KASHIPUR
  • 3. The E-Commerce Supply Chain  Supply chain management is a key value chain composed of:  Demand planning  Supply planning  Demand fulfillment
  • 5. The E-Commerce Supply Chain  E-commerce supply chain management allows businesses an opportunity to achieve:  Increased revenues and decreased costs  Improved customer satisfaction  Inventory reduction across the supply chain
  • 6. SCM – some definitions  Supply chain management (SCM) The coordination of all supply activities of an organization from its suppliers and partners to its customers.  Upstream supply chain Transactions between an organization and its suppliers and intermediaries, equivalent to buy-side e-commerce.  Downstream supply chain Transactions between an organization and its customers and intermediaries, equivalent to sell-side e-commerce.
  • 7. Members of the supply chain (a) simplified view (b) including intermediaries
  • 8. A typical supply chain (an example from the B2B company)
  • 9. Push and pull approaches to supply chain management
  • 10. Push and pull approaches to supply chain management
  • 11. Two alternative models of the value chain. (a) traditional value chain model, (b) revised value chain model
  • 12. A typical IS infrastructure for supply chain management A typical IS infrastructure for supply chain management
  • 13. Alternative strategies for modification of the e-business supply chain Alternative strategies for modification of the e-business supply chain
  • 15. B2B E-Commerce  Business to Business (B2B) e-commerce – when a business sells products and services to customers who are primarily other businesses:     Where all the e-commerce money is Basically, it’s about businesses doing business with other businesses Supply chain management is a big part of B2B e-commerce B2B take full advantage of e-commerce by creating and using e-marketplaces    E-Marketplaces are virtual marketplaces where companies buy and sell products to each other, share information, and perform other important activities This is one of the fastest growing trends in the B2B e-commerce model Example: A firm selling car components to a car manufacturer
  • 16. B2C E-Commerce  Business to Consumer (B2C) e-commerce – when a business sells products and services to customers who are primarily individuals.    B2C is the glitzy e-commerce like iTunes, Amazon, eBay, etc Focused on consumer items – books, music, computers, etc Consumers interact very differently with the web than in the B2B ecommerce model    Consumers surf around the web evaluating products and services until they eventually choose one site from which to make a purchase Businesses prefer to enter into long term partnerships with other partnerships in the B2B model, but consumers are more fickle and purchase the same types of products from many different sites The B2C model is a very cut-throat environment with many different competitors trying to drive down costs
  • 19. C2B E-Commerce  Consumer to Business (C2B) e-commerce – when an individual sells products and services to a business  True economic inversion of the B2C model      In B2C, demand is driven by the consumer and supply driven by the business In C2B, this is reversed – with business driving demand, and consumers driving supply Fotolia is a good example (www.fotolia.com) There you can post photos and videos and businesses will pay you a royalty to use them (if they like what you offer) You can also advertise businesses on your personal Web site (called an affiliate program) and receive monies for visitors who jump from your site to the business’ Web sites   Amazon pay royalties to individuals who advertise amazon on their site. Also opportunities here for good blogging web-sites
  • 20. C2C E-Commerce  Consumer to Consumer (C2C) e-commerce – when an individual sells products and services to another individual.   You selling to another person (or the reverse) Usually occurs through an intermediary such as eBay     eBay is a hybrid of B2C and C2C It facilitates consumers (B2C) to sell products to each other (C2C) Many C2C web sites don’t really support any sort of e-commerce (i.e. money changing hands for products and services) Rather the facilitate people coming together with common interests  www.Mp3fusion.net – people who share music, etc

Editor's Notes

  1. PlanEvery company needs a strategy on how to manage the resources in order to achieve their customers demand for their products and services. The supply chain management is developing a set of metric to monitor the supply chain so that it can deliver high qualities and values to customers.SourceTo create their products, companies need to be very careful when choosing suppliers to deliver their goods and services needed. The managers need to develop a set pricing and delivery system in the supply chain.They can also put processes for managing their goods and goods inventory, for example; receiving shipments.MakeIn manufacturing the supply chain manager should always schedule the activities that are needed for the production, packaging, testing and preparation for delivery. The most metric-intensive portion of the supply chain, production output and measure levels.DeliverThis part is mainly referred to as logistics by the supply chain management. In this case companies coordinate receipts of orders, pick carriers to get products to customers and develop a network of warehouses.ReturnIn many companies this is usually where the problem is – in the supply chain. The planners should create a flexible and responsible network for receiving a flaw and excess products sent back to them (from customers).