ECommerce in CAPCO

1
E-Commercein CAPCO

• PC Chen
• 07/2003

2
Background

• The rapid growth of competitors
• Business environment changes in both demand and
  supply chain
• Technology changes(every 5 10 years)
• MRP (Material Requirement Planning)
• MRP II (Manufacturing Resources Planning)
• ERP (Enterprise Resources Planning)
• ERP II ( Web based ERP SCM CRM)
• Streamline supply and demand chain resources
  planning by new internet technology.

3
The Losers Thinking

• We are the best, even we dont change.
• We had best technology, nobody can catch up.
• We set up best contract with suppliers for years,
  so our procurement is most effective..
• We use total cost thinking to purchase goods, we
  already know what is best to us ..
• After BPR, manpower are tight, we probably not
  afford to start another jump.
• Knew technology changes in these years, but lack
  of consultants, we cant do any changes.

4
Why E-commerce ?

• The MRO purchasing cost is under 5 of total
  procurement, but spend 80 of buyers resources,
  EC is the solution.
• New internet technology, effectively operate
  business from 5X8 to 7X24 without time, space
  boundary.
• Keep up with technology pace, maintain CAPCOs
  competitive position.

5
The Vision

• Users can directly timely get needed
  materials/services from inside or outside sources
  by a simple and most cost effective way.

6
The to-be Scenarios

• The professional cross functional team lead,
  design and conduct the buying activities.
• The system response to users needs by
  effectively provide the supply sources of
  internal or external.
• An collaborative e-market-warehouse helps
  business growth and mutual benefit for CAPCO,
  industrial partners and suppliers.
• Only classified insurance parts that unable to
  timely procure from market, are stocked by CAPCO.

7
New Technology

• The new technology includes the management of
  structured transactional data to unstructured
  knowledge management

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E-Business Structure
Catalog Vendors Products Stock
Market place
EBP CRM
EBP (Hosted)
SAP R/3 Not web based
BW
Portal KM
Structured data Structured data web
based Non-structured Information web based By
Marketplace owner
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The Benefit

• Remove buyers at least 80 of time consumed in
  ordering activities.
• Team wisdom to create best buying environment
  then buyer individuals.
• Purchasing knowledge can be managed and shared to
  all people, increasing sourcing efficiency.
• Open market competition to gain more favor
  prices.
• Paperless and 24 hours channel to retrieve
  valuable information from open market.

10
E-Commerce Status

• 5 industrial partners, 95 suppliers joined
  e-market
• CAPCO 60
• Shin-Kong fiber 26
• CSRC 3
• Other 6
• 65,198 products information uploaded into
  catalog.
• Some reverse auctions cases exhibits the great
  saving
• Engineering drawings rebuilt bid 800 MNT down
  to actual 380 MNT, saving more than 50.
• PTA bulk trailer transportation fee 18 bidders
  joined, the unit prices is 17 lower after bid,
  convert to dollar value about US 1,500,000
  saving annually.
• Utilization of this new internet tool is still
  low.

11
System DEMO

• Catalog (marketplace)
• Shopping cart
• Shopping cart with limit value
• Vendor confirmation
• Bid invitation/reverse auction
• ERS invoice settlement
• Portal integration, KM and contractor management.

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Q A
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From ERP to Private Exchange
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Exchanging the Business Perspective
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Essential Make-Up of E-Marketplaces
MarketSite
Builder
Exchange-base Business to Business
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Business Beyond Boundaries