sUPLY cHAIN

1. E-Businnes and The Supply
Chain

2. The Role of E-Business
E-business is the execution of business transactions via the
internet:
• Providing product information.
• Placing orders with Suppliers.
• Allowing customers to place orders.
• Allowing customers to track orders.
• Filling and delivering orders to customers.
• Receiving payment from Customers.

3. Today, The internet plays a significant role in many supply chains
And companies are using the internet to conduct a wide variety of
Supply Chain transactions.

4. B2B vs B2C
• Business to Business
commerce. When one
business sells to
another business
rather than to an end
user
• Transactions
between a company
and a consumer.

5. The role of E-business
The Value of e-business will allow
business to create significat value in the
future.
The value however will depend upon the
industry and the stage in the supply chain
a firm occupies.

6. The E-business Framework
• Impact on responsiveness. (which primarly
affects a company’s ability to grow and
protect revenue).
• Impact on effiency. (which primarily affects
a company’s cost).

7. Impact of E-Business on
Responsiveness
•
•
•
•
•
•
•
•
•
•
Enables a company to gain new revenues or to protect
existing revenues.
Direct Sales to Customers.
24 Hour access from any location.
Wider Product portfolio and Information Aggregation.
Personalization/Customization.
Faster time to Market.
Flexible pricing, product portfolio, and promotions
Price and Service discrimination
Efficient funds Transferr
Lower stockout levels.
Convenience/automated processes

8. Impact of E-business on Cost
•
•
•
•
Inventory
Facilities
Transportation.
Information

9. Dell
•
•
•
•
•
Customers
Inventory Cost
Facility Cost
Transportation
Information

10. Dell
Area
Impact
Area
Impact
Direct Sales
xx
Efficient funds transferr
xx
24 Hour access
xx
Lower Stockouts
xx
Wider Product portfolio
xx
Convenience/ automated
processes
equal
Personalizaion/ customization
xx
Inventory
xx
Faster time to market
xx
Facilities
xx
Flexible pricing, portfolio
promotions
xx
Transportation
less
Price discrimination
Equal
Information
equal

11. Amazon

12. Amazon
•
•
•
•
•
Customers
Inventory Cost
Facility Cost
Transportation
Information

13. Amazon
Area
Impact
Area
Impact
Direct Sales
Equal
Efficient funds transferr
equal
24 Hour access
xx
Lower Stockouts
x
Wider Product portfolio
xx
Convenience/ automated
processes
equal
Personalizaion/
customization
xx
Inventory
x
Faster time to market
x
Facilities
x
Flexible pricing, portfolio
promotions
x
Transportation
less
Price discrimination
Equal
Information
less

14. Exito

15. Éxito
•
•
•
•
Inventory Cost
Facility Cost
Transportarion
Information Cost

16. Area
Impact
Area
Impact
Direct Sales
Equal
Efficient funds transferr
equal
24 Hour access
x
Lower Stockouts
x
Wider Product portfolio
Equal
Convenience/ automated
processes
equal
Personalizaion/ customization
x
Inventory
equal
Faster time to market
equal
Facilities
less
Flexible pricing, portfolio
promotions
x
Transportation
less
Price discrimination
Equal
Information
less

17. Magnitude value from B2B ebusiness
Transaction Costs:
• Search products.
• identify availability and pricing,
• identify substitutes.
Improved Market Efficiencies
• A large numbers of buyers/sellers can be
attracted to the online sites.

18. Supply Chain Benefits
The Value of supply Chain benefits can be
higher when product life cycles are short.
• Increased visibility
• Collaboration

19. A firm can be successful with e-business only if it can integrate
The interntet with existing channels of distribution in way that
Uses the strenghts of each appropiately

20. E-business in practice
1.
2.
3.
4.
5.
Integrate the Internet with the existing physical
network.
Devise shipment pricing strategies that reflect costs.
Optimize e-businness logistics to handle packages not
pallets.
Design the e-business supply chain to efficiently
handlre returns.
Keep Customers informed throughout the order
fullfillment Cycle.