e-Hubs

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The document discusses different types of business-to-business (B2B) electronic marketplaces called e-Hubs. It describes MRO Hubs which concentrate on regularly purchased maintenance, repair, and operating goods. Catalog Hubs are similar but focused on specific manufacturing inputs. Yield Managers specialize in one-time sourcing when prices or demand fluctuate for hard to acquire assets. Exchanges help manufacturers exchange parts to manage production variability.

Business Technology

Kaplan & Sawhney e-Hubs: The New B2B Marketplaces Harvard Business Review, May/June 2000 Prepared by Wesley Shu

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International Conference and Workshop on Emerging Trends in Technology (ICWET 2011) – TCET, Mumbai, India 761 E-Procurement for Increasing Business Process Agility D R Kalbande Research Scholar (Tech.) Mumbai University, Mumbai. +91-9820383928 [email protected] G T Thampi Principal,TSEC, Mumbai University, Mumbai. +91-9969015439 [email protected] N T Deotale Dept. of Computer Engg. LTCOE, Mumbai. +91-9869723420 [email protected] ABSTRACT Today the business is changing rapidly over the period. Every enterprise need to develop new service offerings and new technologies has to be adopted or reconfigured. Most of the service companies are tied with traditional project techniques, which include a staged approach. These stages need to be compressed and changed to meet time-to-market demands. Today every enterprise must be agile enough to respond with changing requirements of their customers. Agility has becomes the basic key attribute today as business faces uncertain and volatile environments.E-Procurement makes it possible to automate buying and selling over the internet. Typically an e-Procurement- enabled website will have product comparisons across vendors and various processes like tendering, auctioning, vendor management, and catalogue and contract management. High-end e-procurement solutions allow organizations to define their own processes in the form of workflows - thus utilizing concepts of business process modeling. In this paper we present the findings from a recent survey on e-procurement in India and explain how an e-procurement can be used in such fast growing organization to speed up the business activity at the suitable agility level and its impact on centralization and firm’s efficiency in the procurement process. Categories and Subject Descriptors K.4.4 [Electronic Commerce ] :Electronic data interchange (EDI) ; K.4.m Miscellaneous; General Terms Management Keywords: Agility, e-procurement, ERP 1. INTRODUCTION In the business buzzword universe, flexibility and agility are often tossed around interchangeably. But the two are vastly different concepts when it comes to business processes and information technology systems. Agility, not flexibility, is key to business's ability to survive and thrive in today's competitive global marketplace. A company that can quickly accommodate a new customer requiring XML ordering capability, for example, has process-level agility. A company that has many ways to complete a process and encourages their customers to specify their preferences and can deliver that customized experience has transaction-level agility. For example, customer who specifies they want to place their orders using XML1 , wants a bar-code label put on the box, an RFID2 tag on a certain type of pallet, and wants a paper invoice once a month with bulk billing is testing a company's transaction- level agility.Companies with low product diversity but strong competition in the market need to excel at process-level agi.

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Level Two Supply Chain Management Supply Chain Management II Learning ObjectivesTo understand supply chain management beyond the traditional model.To appreciate the complexity of meeting customers requirements. DefinitionThe management of activities that produce materials and services, transform them into intermediate goods and final products, and deliver them through a distribution system. Heizer and Render (2010) SCM Activities PurchasingDistributionProductionMaterials managementSupplier managementCustomer management The Supply Chain Taken from Slack (2010) Purchasing The function responsible for buying all the materials needed by an organisation. Waters (2008)Procurement is a wider term. Rental, contracting, legalities etc PurchasingThe link between the suppliers and the operation. Need to understand the requirements of processesAnd, the capability of potential suppliers. Large number of suppliers used and available ManagingDecisionsImplications of e-procurement Purchasing - ExampleTotal Sales - £10,000,000Purchased services and materials - £7,000,000Salaries - £2,000,000Overheads - £500,000Profit = £500,000 Purchasing - Example continuedProfits could be doubled to £1 million if any of the following occur:Sales revenues increase by up to 100%Salaries decrease by 25%Overheads decrease by 100%Purchase costs decrease by 7.1% Selecting SupplierDifficult decisionsTrade offsScoring and supplier assessmentOne supplier or multiple suppliers?Change and risk Supplier ManagementFactors for rating alternative suppliersShort-term ability to supplyLong-term ability to supplyRange of products or services providedPotential for innovation Quality of products or servicesEase of doing businessResponsivenessWillingness to share riskDependability of supplyLong-term commitment to supplyDelivery and volume flexibilityAbility to transfer knowledge as well as products and servicesTotal cost of being suppliedTechnical capabilityAbility to supply in the required quantityOperations capability Financial capability Managerial capability Supplier ManagementSuppliers selected based upon trade offs.Supplier scoring / assessment.One or multiple suppliers.Meeting business needs.Need to audit.Long term suppliers and improvements. DistributionPhysical distribution management, logistics or distribution.Logistics is the function responsible for all aspects of of the movement and storage of materials on their journey from original suppliers through to final customers. (Waters 2008)Aims to obtain efficiency through the integration of all material acquisition, movement and storage activities. (Heizer and Render 2010) DistributionDistribution methodsRoadRailSeaAirPipeThird party logistics providers Information and customer service implications/expectations e.g. order tracking. Materials ManagementLimited term - controls the movement of materials within an organisation. Waters 2008Concerned with ...

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Presentation #1 – Discussion Questions (each question must be answered in at least two paragraphs each) 1. Consider complementary businesses and products and industry convergence. Are there times when attempting to be “all things to every customer” isn’t beneficial to the company or conducive to growth? Or should a company always try and expand offerings and services? Explain your reasoning. 2. How has the internet changed Best Buy? How has Amazon changed the way the industry approaches online sales? 3. The consumer electronics industry when analyzed through Porters Five Forces Model made the assumption that the online retailer, is not a substitute, but a competitor (i.e. Amazon to Best Buy), since Best Buy offers e-retailing now. Do you agree? Can you identify any other potential substitutes to this industry or will we have to wait for the next technological (product or service) advancement for a true substitute? Presentation #2 – Discussion Questions (each question must be answered in at least two paragraphs each) 1. Through online retailers and large department stores, the consumer electronics industry has become more commoditized and price-driven. What room is there for smaller service-based stores in this industry? 2. The threat of online superstores such as Amazon threatens Best Buy’s strategic positioning. Could Amazon being solely online offer a comparative advantage to Best Buy? 3. Best Buy has hundreds of stores, showrooms, a very knowledgeable sales team, and price matching. What do you think is stopping them from gaining market share from Amazon? Case 2: Best Buy Best Buy – Expert Service. Unbeatable Price. Best Buy was founded by Richard Schulze in 1966 as Sound of Music. The company changed it’s name to Best Buy in 1983. Best Buy became a publically traded company in 1987 Best Buy has more than 1,400 locations and employs more than 125,000 people. Best Buy had revenue of more than $40 billion in 2015 Case Overview The Best Buy case outlines a turn-around strategy specific to Best Buy in the dynamic industry of consumer electronics. This case will look at Best Buy’s competitive advantage and strategic positioning in the market and how these events have affected Best Buy’s recent performance. We will analyze the rivalry among Best Buy’s competitors in the consumer electronics industry including Amazon and Walmart. Competitive structure of the industry will be discussed including industry dynamics, industry convergence and the consumer electronics industry life cycle. A strategic group map for the consumer electronics retailing industry has been plotted for this case. Included are details of how industry forces affect strategic groups differently in areas including profitability. Competitive Advantage Best Buy’s “Renew Blue” strategy focused on leadership, customers, employees, and differentiating products. Through this, they were able to gain a competitive advantage in 4 areas. Business model attr.

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1. Kaplan & Sawhney e-Hubs: The New B2B Marketplaces Harvard Business Review, May/June 2000 Prepared by Wesley Shu

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