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The Role of Mass Customization in Enhancing Supply Chain Relationships in B2C E-Commerce Markets

The Role of Mass Customization in Enhancing Supply Chain Relationships in B2C E-Commerce Markets. Alex Daza Denise Jeong Jesse Ortega. Introduction. Supply Chain History Impact of E-Commerce on Supply Chain The role of Information in Supply Chain Mass Customization in B2C Conclusion.

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The Role of Mass Customization in Enhancing Supply Chain Relationships in B2C E-Commerce Markets

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  1. The Role of Mass Customization in Enhancing Supply Chain Relationships in B2C E-Commerce Markets Alex Daza Denise Jeong Jesse Ortega

  2. Introduction • Supply Chain History • Impact of E-Commerce on Supply Chain • The role of Information in Supply Chain • Mass Customization in B2C • Conclusion

  3. Definition of Supply Chain • Supply Chain is a network of entities through which material flows from suppliers to consumers • Total Cost Minimization • Several layers of intermediaries involved • Linear distribution channel • Consist of three dimensions

  4. History of Supply Chain • Industrial Era • Supply Chain was vertically integrated • Transport was heavily regulated. • Minimization of Total Cost • 1970’s • Changed focus to core competencies • Deregulation of transportation • Outsourcing of supply functions and distribution channels • 3rd ERA • Transition ongoing in Supply Chain Management • Integration of information flows (Supplier’s Suppliers)

  5. Role of E-Commerce • Reductions of layers of intermediaries • Mass Customization in digital and physical goods • New functional relationships • Demand forecast and inventory mgmt functions influenced • VMI • Removal of constraints relating to geography, time and space

  6. Three Dimensions of SCM Third Party Payments Money Exchange Traditional Processes Information Exchange Goods Exchange Vortals Auctions E-Procurement Third Party Logistics

  7. Role of E-Commerce…….cont.. • Information sharing between supply chain partners • Ability to track inventory anywhere, anytime • Reduced business cycles • Positive impact on the economy

  8. Cost Savings in E-Commerce • Direct selling to end consumer reduces the price of a good • Seller can modify purchase to meet buyers needs completely • Reduction of transactions • Digital good eliminates traditional intermediaries • Change from build-to-stock to build-to-order • Better communication lead to better inventory mgmt and production planning

  9. Mass Customization in B2C • New electronic market models (market spaces) • This intermediation has created new direct channel opportunities (Dell, Amazon) • Significant cost savings have been realized throughout the SCM • Production equals consumer needs completely • Bypassing of traditional intermediaries • Exact information available to final consumer

  10. Supplier Producer Wholesaler Retailer Consumer Traditional Supply Chain Supplier Producer Wholesaler Retailer Consumer Legend Hard Good Flow Information Flow Disintermediation in Supply Chain

  11. Summary • Traditional Supply Chain • Electronic E-Commerce • Mass Customization • Information Exchange • Cost Savings • Transformation in Supply Chain • Positive Macro-Economic Impact

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