Supply Chain Management

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Supply Chain Management eCommerce
Technologypresented byNachiappan Annamalai

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Overview

• Supply Chain Management - Whazzit
• SCM today - Problems
• Solutions - e-Commerce
• Examples of present systems - tradematrix.com -
  i2 Technologies
• e-Commerce - Application to SCM - Framework
• Future of SCM e-Commerce
• Suggestions

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World Internet Population 3/99

• World Total 158.50 MILLION
• Africa 1.14 million
• Asia/Pacific 26.97 million
• Europe 36.55 million
• Middle East .88 million
• Canada USA 88.33 million
• South America 4.63 million

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Effective SCM involves

• Managing Supply Chain as a single entity
• Recognizing end user service requirements
  Customer Utility f(time, quantity, place)
• Recognizing time as basis of competitive
  advantage
• Effective use of Inventory
• Continuos Improvement

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Time Involved in the Process
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Effects of Time Consuming SCM

• Excessive Inventory - 30 Billion ( Grocery
  Supply Chain alone)
• Poor Product forecast
• Poor Capacity Planning
• Poor Customer Service
• High Corrective Costs - Overtime, Subcontracting,
  Trans. Prob.
• Optimized Supply Chain as a Whole entity - Not
  Possible
• Internationalization - Not possible

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Distribution
Factory
Warehouse 1
Warehouse 2
Retailer 1
Retailer 2
Retailer 3
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Other Problems

• Demand Forecast Updating
• Order Batching
• Price Fluctuation
• Shortage gaming

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Demand Forecast Updating

• Amplification of Fluctuation when ones goes up
  the Supply Chain
• Lead Time importance

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Order batching

• Orders in Batches - Compulsion
• - Time Cost Constraints
• - Transportation Problems - FTL - Full Truck
  
• Load
• Overlapping of Order Cycles - Leads to more
  variability
• MRP Jitters

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Price Fluctuations

• Forward Buy
• Role of Price Fixing - Erratic Demand
• Variation in Buying Quantity is much bigger than
  the variation of the Consumption rate

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Shortage Gaming

• Phantom Orders - When Why does it Occur
• Examples
• - Motorola and its Distributors
• Air touch Communication Baby Bells
• - IBM Aptiva Model - Assumption of Retailers

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Counteractions

• One and only best Solution
• E-Commerce
• - Information Sharing
• - Channel Alignment
• - Operational efficiency
• - Intelligent Optimization Agents
• - Transaction Processing
• - Money Transactions

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I2 Technologies - Tradematrix.com

• an efficient SCM e-Commerce system

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Services the System Provides

• Direct Indirect Procurement
• RFQ - (Request for Quote) Collaboration
• Demand Collaboration
• Holisitic Customer Management
• Buyer Seller Services
• Service Providers
• Marketing Services

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Tradematrix.com - Framework

• Front end
• - Portal
• - Customer Management
• - Communication Systems
• - Money Transactions
• Back end
• - Optimization
• - Transaction Processing System

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The Process of Commerce

• Buyers and sellers find each other
• Communication advertising and marketing
• Intermediaries (dealers, distributors, reps)
• Negotiation
• Agents (buyers, lawyers)
• Transaction
• Contract
• Payment (or many payments)

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The Process of Commerce

• Order fulfillment
• Manufacture
• Delivery
• Post-sale events
• Customer service
• Reorder, restock
• Accounting
• Are we making a profit?
• Data analysis
• Whos buying the stuff?

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The eCommerce Process

• Transaction
• Transaction processing, Databases
• Electronic Payment Systems,
• Computer Security,
• System Reliability
• Order fulfillment
• Manufacture (manufacturing systems)
• Delivery (tracking systems)

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eCOMMERCE TECHNOLOGY

• Networks Security
• Internet Electronic payment
• Programming Search engines
• Multimedia Intelligent agents
• Databases Data mining
• Transaction processing

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The eCommerce Process

• Which of the steps are bittable?
• Buyers and sellers find each other
• Communication (via Networks, the Internet,
  Programming and Information Retrieval)
• Human-Computer Interaction, Multimedia
• Intermediaries
• Disintermediation
• Negotiation
• Electronic Negotiation, Intelligent agents

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The eCommerce Process

• Post-sale events
• Customer Service and Help Facilities
• Reorder, restock
• Accounting
• Transaction processing
• Interoperability between online and legacy
  systems
• Data analysis
• Data Mining

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Ideal e-Business System

• Front End
• - Portal
• - Communication Systems - Interface with
  Mobile Devices GPS - for access to real time
  info.
• - Money Transaction
• - Customer Management Systems
• Back End
• - Optimization
• - Decision Support Systems Intelligent
  Agents
• - Transaction Processing System
• - Prioritizing Systems - Shows Contradictions
• - Forecasting System with Responder-
  Capability to match System Dynamics

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Manufacturing Services

• Front End System Functions
• - Product Design Quality Specification
• - Customer Management Communication System
• - Money Transactions
• Back End
• - Standard time Least Cost
• - Supply Time
• - Optimization
• - CNC Machine Code Conversion
• - Route data to CNC Machine
• would lead to total automation - paperless
  industry