Virtual Supply Chain

1
Virtual Supply Chain

• By
• Andy Armstrong
• Lindsey Armstrong
• Todd Brown
• Denny Burnett
• Paul Carbajal

2
Virtual Supply Chain

• Virtual Supply Chain-
• A Virtual Supply Chain represents a network of
  firms coming together to exploit fast-changing
  opportunities. By quickly combining their core
  competencies the alliance of firms is able to
  take advantage of a market opportunity.
• VSC Depend On-
• Developed Information Infrastructure
• Continually Improving Technology
• Length of VSC Alliance Depends On-
• Availability of the market opportunity
• Future business objectives of the firms involved

3
Example of VSC

• Online Ordering
• Production Planning
• Production Plan
• Supplier A Supplier B Supplier C
• Operational Ordering Operational
  Ordering Operational Ordering
• Strategic Planning Strategic Planning Strategic
  Planning
• Long-term Competitiveness Long-term
  Competitiveness Long-term Competitiveness

4
Four Phases

• Four phases along the value-adding process
• Plan Data is processed for product development
  and management
• Source Volume forecasts determine resources
  required
• Make Raw materials Final products
• Deliver Logistics

5
(No Transcript)
6
Potential of VSCs

• Continually improving technology
• Technology improves capabilities of VSCs
  improve
• Innovation in supply chain
• Flexible supply chain

7
Lending Tree

• When Banks Compete, You Win
• Service that provides people with different
  mortgage companies to choose from.
• They dont actually provide the lending service.

8
4PLs

• A 4PL is an integrator that assembles the
  resources, capabilities, and technology of its
  own organization and other organizations to
  design, build and run comprehensive supply chain
  solutions
• Aimed to save the customers of the supply chain
  money
• Mostly a consulting company

9

• In two words it Recycles Technotrash
• Provides secured, audited disposal of
  intellectual property stored on electronic media
  and other technotrash.
• Through a set of strategic alliances, GreenDisk
  works with both for profit and non-profit
  companies to create a national network of service
  providers. Rather than build new manufacturing
  facilities and recycling centers, GreenDisk
  partners with these non-profit agencies.
• GreenDisk profits from the sale of its products.

10
GreenDisk

• Also, GreenDisk buys downtime from professional
  software manufacturers.
• Instead of setting up new manufacturing and
  fulfillment centers, GreenDisk partners with such
  non-profit agencies as ACT! in Columbia,
  Missouri, which focuses on creating jobs for
  developmentally disabled adults or with the
  Veterans' Administration which re-trains and
  employs disabled veterans.

11
Examples of what it recycles

• Diskettes, CDs, DVDs, Video and Audio Tapes, Ink
  Jet and Toner Cartridges
• Cell Phones, PDAs, Pagers, Digital Cameras, and
  Laptop
• Computers
• Hand-held Games, CD and MP3 Players, Rechargeable
  Batteries and other Computer-related Equipment

12
GreenDisk Process

• GreenDisk Technotrash
• Companies send the technotrash can via the US
  Postal Service to a collection facility
• From there the technotrash is sorted and sent to
  a network of companies and nonprofit groups that
  breakdown the material for reuse

13
GreenDisk Process (cont.)

• Throughout the process it tracks the activity of
  the materials with a bar code, so it can provide
  customers with documentation of its services.
• After the material have been destroyed, GreenDisk
  sends a letter conforming the materials have been
  destroyed (sensitive information has been
  removed).
• The end result for most technotrash is GreenDisk
  products, such as
• recycled CD RWs.

14
Technotrash Can
15
Strategy used by LINE (logistics Information
Network Enterprise)

• Leveraging technology to improve the value chain.
  
• Using the internet as primary source of
  communication and manage real time information
  with electronic documentation to deliver goods in
  the most efficient manner.
• Developing a JIT process to deliver inputs at the
  right time place and quantity reducing inventory,
  material handling and overhead.
• Monitoring truckloads, routes and warehousing
• Enhancing payment process electronically
  increasing speed, assurance, status of goods,
  over purchasing abilities and extra foreign
  exchange services.

16
LINES VSC Management

• Integration of Service Providers, Logistic
  Services and Trading Partners into a single
  platform
• Information design constructed of logistic
  services, partnerships and transportation
  management systems
• 5 areas of focus
• Source, Make, Store, Move, Pay

17
Why VSCM is important to a manager

• Understanding virtual supply chains enhances
  understand of supply chains in general
• Gaining control of a virtual supply chain is
  harder than a constant supply chain, increases
  your overall SCM abilities
• There are multiple businesses using VSC and
  knowing how to improve and manage them properly
  will help the business as well as your career

18
Difference between managing a VSC vs. a normal SC

• Constant stream of different suppliers
• VSC relies more heavily on communication
  technology
• Faster pace in grouping suppliers together to
  create a final product

19
Sources

• Gunasekaran, A. and Ngai, E. W. T. Virtual
  Supply-Chain Management. Production Planning
  Control. Vol. 15, No. 6, September 2004, 584-595.
• LendingTree.com
• GreenDisk.com
• Supplychain.ittoolbox.com What is 4PL?
• Harrisson,Crayton. "Recycling trash through the
  mail." The Dallas Morning News.4/8/2006 ("
  http//seattletimes.nwsource.com/html/businesstech
  nology/2002918311_ptreviews08.html")