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Supply Chain Management & eCommerce Technology presented by: Nachiappan Annamalai

Supply Chain Management & eCommerce Technology presented by: Nachiappan Annamalai. 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

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Supply Chain Management & eCommerce Technology presented by: Nachiappan Annamalai

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  1. Supply Chain Management &eCommerce Technologypresented by:Nachiappan Annamalai

  2. 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

  3. World Internet Population 3/99 • World Total158.50 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

  4. 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

  5. Time Involved in the Process

  6. 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

  7. Distribution Factory Warehouse 1 Warehouse 2 Retailer 1 Retailer 2 Retailer 3

  8. Other Problems • Demand Forecast Updating • Order Batching • Price Fluctuation • Shortage gaming

  9. Demand Forecast Updating • Amplification of Fluctuation when ones goes up the Supply Chain • Lead Time importance

  10. 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

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

  12. 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

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

  14. I2 Technologies - Tradematrix.com an efficient SCM e-Commerce system

  15. Services the System Provides • Direct & Indirect Procurement • RFQ - (Request for Quote) Collaboration • Demand Collaboration • Holisitic Customer Management • Buyer & Seller Services • Service Providers • Marketing Services

  16. Tradematrix.com - Framework • Front end - Portal - Customer Management - Communication Systems - Money Transactions • Back end - Optimization - Transaction Processing System

  17. 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)

  18. 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?

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

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

  21. 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

  22. 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

  23. 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

  24. 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

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