electronic supply chain management
TRANSCRIPT
E- SUPPLY CHAIN MANAGEMENT
Presented by
CHARLES.P
GUNASEKARAN.M
HARI HARA SUDHAN.R
MOHAMED ASIK.M
PRABHAKARAN.V
• The flow of material, information, money, and services from raw material suppliers through factories and warehouse to end customer
What is Supply Chain
WarehouseFactory End CustomerSupplier Distribution
E-Supply Chain Management
• Electronic supply chain management is most commonly referred to as e-supply chain management.
• It combines the concepts of electronic business (e-business) and supply chain management (SCM), and depicts how trade channel members are working together to optimize resources and opportunities
Elements of Supply Chain
Upstream
• 1st Tier Supplier
• 2nd Tier Supplier
Internal
• Manufacturing
• Packaging
Downstream
• Distribution Center
• Retailer
• Customer
Internal Value Chain,Manufacturing, Inventory Control
Distribution, Warehousing, Transportations
Supplier Relationship Management,Procurement Management
• Partner collaboration as strategic asset
• Information visibility
• Speed, cost, quality, and customer service
• Tightly integration
Success of Supply Chain
Financial Scenario
Online Shopping Site
SWIFT Network
Bank
Bank
Corporate
Vendor
Payments Hub
Core SystemConsumer
Source: Introducing Microsoft’s Integration Solution: BizTalk Server 2009Achieving business edge through process agility
Electronic Opportunities
• Advancement software
• EDI
• SCM collaboration
• Demand
Benefits of e-SCM
• Improved Supply Chain Network
• Minimized Delays
• Reduced Costs
• Accuracy of Data
Supply Chain Execution
Suppliers
DC Warehouse Inventory System
ERP System
Store Inventory SystemBizTalk
RFID Stores
Retailer
Check DC Warehouse
Inventory
DC Warehouse
Business Decision Makers
Messaging
EDIBAM
Re-stock Orders
Orchestration
BRE (Filter Tags)
RFID
Source: Introducing Microsoft’s Integration Solution: BizTalk Server 2009Achieving business edge through process agility
Supply Chain Activity
• Production and Distribution integration to facilitate make-to-order, and assemble to order
• Reduce inventory costing
• Eliminate stocking point
Supply Chain Replenishment
• Requisition, ordering, tracking, payment
• Improving the operation of supply chain
• Web–based functions online catalog, purchase order, and shipping notice
e-Procurement
• Using PDA in inventory entries (receiving, count, issuance)
Inventory Management using Wireless Technology
• Buyer and seller sharing demand & forecast plans
Collaboration Planning
• Web-based technology to support distribution, inventory tracking, transportation
e-Logistics
Supply Chain Infrastructure
• Facilitate supply chain relationships
Electronic Data Interchange (EDI)
• Corporate internal network for collaboration
Intranet
• Facilitate interorgnizational communication
Extranet
• A gateway for internal and external collaboration, and communication
Corporate Portal
• Managing the flow of information in organization
Workflow Systems and Tools
Operations Issues in Online Sales
• Inventory management
• Packing orders for shipment
• Delivery
• Customer returns
Tactics for Reducing Inventory Costs (5) Drop Shipping
When a customer orders from Company A, some or all of the order may be shipped by Company A's suppliers.
Customer ordersfrom Amazon
Order & paymentAmazon
distributioncenterFrequently ordered items
Supplier who sells a less frequently ordered item
makes a drop shipment
OrderOrdereditem
Operations Issues in Online SalesPacking Orders for Shipment
• Items are identified by bar codes or radio frequency ID (RFID)
• Warehouse workers put ordered items in crates
• Sorter sends each item to the correct, bar-coded box for the customer who ordered it
• Packing slip is printed
• Boxes are packed, taped, weighed
• Boxes are put on trucks for shipment to customers
Operations Issues in Online SalesCustomer Returns
• Objective: minimize the cost of customer returns and reduce "hassles" for customers– 25% of Internet orders result in a customer return
– Problems in returning goods are the 2nd biggest reason that consumers don't buy online
• Customer usually pays for return shipping
• Variety of approaches used to return goods: postal service, contract package delivery service, brick-and-mortar store
Operations Issues in Online SalesCustomer Returns (2)
• Online retailer must ship a replacement item or issue credit to customer
• Online retailer must process returned items
– Return defective items to supplier for a credit
– Good items can often be repackaged, priced, and resold.
SAP overview of SCM
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