Transcript eCommerce Technology

Supply Chain Management
&
eCommerce Technology
presented by:
Nachiappan Annamalai
Overview
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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
World Internet Population 3/99
• World Total
• Africa
158.50 MILLION
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
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
Time Involved in the Process
Effects of Time Consuming SCM
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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
Distribution
Other Problems
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Demand Forecast Updating
Order Batching
Price Fluctuation
Shortage gaming
Demand Forecast Updating
• Amplification of Fluctuation when ones goes
up the Supply Chain
• Lead Time importance
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
Price Fluctuations
• Forward Buy
• Role of Price Fixing - Erratic Demand
• Variation in Buying Quantity is much bigger
than the variation of the Consumption rate
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
Counteractions
• One and only best Solution
E-Commerce
- Information Sharing
- Channel Alignment
- Operational efficiency
- Intelligent Optimization Agents
- Transaction Processing
- Money Transactions
I2 Technologies - Tradematrix.com
an efficient SCM e-Commerce system
Services the System Provides
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Direct & Indirect Procurement
RFQ - (Request for Quote) Collaboration
Demand Collaboration
Holisitic Customer Management
Buyer & Seller Services
Service Providers
Marketing Services
Tradematrix.com - Framework
• Front end
- Portal
- Customer Management
- Communication Systems
- Money Transactions
• Back end
- Optimization
- Transaction Processing System
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)
The Process of Commerce
• Order fulfillment
– Manufacture
– Delivery
• Post-sale events
– Customer service
– Reorder, restock
• Accounting
– Are we making a profit?
• Data analysis
– Who’s buying the stuff?
The eCommerce Process
• Transaction
– Transaction processing, Databases
– Electronic Payment Systems,
– Computer Security,
– System Reliability
• Order fulfillment
– Manufacture (manufacturing systems)
– Delivery (tracking systems)
eCOMMERCE TECHNOLOGY
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Networks
Internet
Programming
Multimedia
Databases
Transaction
processing
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Security
Electronic payment
Search engines
Intelligent agents
Data mining
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
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
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
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