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BY ANKIT CHOUDHARY

Supply Chain management is the process of managing

the movement of goods from suppliers to buyers.


Is the process of optimizing a company's internal

practices in interacting with suppliers and customers in order to bring products to market more efficiently.

SCM

functions encompass demand forecasting, sourcing and procurement, inventory and warehouse management, distribution logistics, and other disciplines.

Supply chain management spans all movement and

storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption
5 stages of SCM is "Design, Planning, Execution,

Control, And Monitoring

E-business is all about time cycle, speed, globalization, enhanced productivity, reaching new customers and sharing knowledge across institutions for competitive advantage

Electronic business (e-business) - Conducting business via the Internet.


E-tailing, or virtual storefronts on Web sites. Online business-to-business transactions. Electronic data interchange (EDI), the business-to-business

exchange of data using compatible software.


E-mail,

instant messaging, and other Web-enabled communication tools and their use as media for reaching prospective and existing customers. information through Web contacts.

The gathering and use of demographic, product, and other

Web
Universal Access Standards

E-BUSINESS
Using internet technologies to transform key business processes

IT

E-BUSINESS = Web + I/T

Data Applications Core business processes Reliability, security

and availablitiy

E-BUSINESS: CLASSIFICATION
Business to Business (B2B) Business to Consumers (B2C) Consumer to Consumers (C2C) Consumer to Business (C2B) E-Government (B2G, C2G etc.) Others P2P etc.

Global Reach. Goods and services can be sold to

customers worldwide.
Personalization. Companies can customize products and

reduce inventory.
Interactivity. Customers and suppliers can negotiate

prices online.
Right-time and integrated marketing. Online retailers

provide products when and where customers want them and promotions can be directed to individual customers.
Cost savings. E-business can reduce costs.

Privacy is among the top concerns of Internet users. E-business sites often require passwords and use

electronic signatures, an electronic form of identity verification.


habits through cookies. personal information.

Companies can track customers shopping and viewing

Customers usually prefer that companies do not share their


Privacy protections may soon become legally required. Employees also have concerns that employers are

monitoring their Internet behavior.

Companies worry about data theft

Integrated supply networks.


New logistics services concept Use of new identification technologies

Collaboration with logistics service providers

Improved operational efficiency Superior information quality Enhanced service level Improved operational flexibility

Improved competitiveness through re-designed

processes

Security Problems
The Changes of Business Process Weaker Supply chain links

Sharing benefits

Convergence
Cross-Industry Supplier/Customer convergence

Just under 15% are in the integration phase. Connections to suppliers and customers are fully E-Business enabled. Over 50% are in the channel phase of E-Business development with a web presence but no infrastructure tie-in.

Transformation
Industry transformation, achieve competitive advantage

Business Value

Integration
Integrate with customers and suppliers

Channel
Brochureware and buying /selling

E-Business Leverage
Source: PricewaterhouseCoopers

Four stage model in E-Business maturity relates business value to e-business leverage

E Business has tasted much success in India in recent

past and has provided Indian business a new heights, global reach, competitive advantage, acquiring new customers (global & local), foreign product knowledge etc E Business has become integral part of everyday life from online banking to brokerage transactions, e contracts to global marketing E Business has seen significance impact on airline sector, banking sector, educational, matrimonial services, placement sites and many B2B transactions

GROWING SECTORS OF E BUSINESS IN INDIA


Automobiles: Buying and selling of new & used four wheelers and two-wheelers, its marketing, etc. Real estate and e-commerce: They provide information on new properties as well as properties for resale. Travel & tourism: Online reservations, tour packages, hotel bookings Stocks & shares: Online trading, Online banking Gifts through E commerce: Chocolates, Luxury items, flowers Matrimonial Services, Employment sites Indian railway (IRTC)

The factors affecting the growth of E Business as follows: IT and Security factors Customer perception & Attitudes Technological factors General factors Internet factors Infrastructural & Internal resisting factors Regulatory & Political factors User interface factors

Generate additional Revenues


New markets New products New customers

Reduce Costs (Integration and Collaboration)


Process efficiency Reduce IT variety and -complexity Synergies with other initiatives

Customer Retention (Added Services and Virtual Community)


Know more about your customers Integrated channel management Proactive and personalized offerings

Improve Image / Position Brand


Applying innovative technologies Leadership enterprise Address younger customer segments

Not to miss the boat


Keeping options open Acquire know-how Focused investments

Reduce administrative and operating costs

Reduce inventory costs


Reduce the cost of procurement Improve customer service and satisfaction

Streamline procurement procedures


Increase communication efficiency and interaction

with employees, vendors, customers and strategic partners Increase revenues and profit margins

Direct sales to customers

24 hour access for order placement


Information aggregation Information sharing in supply chain

Flexibility on pricing and promotion


Price and service discrimination Faster time to market

Efficient funds transfer - reduce working capital

Direct customer contact for manufacturers

Coordination in the supply chain


Customer participation Postpone product differentiation to after order is

placed Downloadable product Reduce facility costs Geographical centralization and resulting reduction in inventories

Customer

Customer

Pull Amazon
Distributor Publisher Amazon Supply Chain

Pull

Retail Store
Warehouse (?) Publisher Bookstore Supply Chain

Revenue opportunities
24 hour access for order placement
Providing large selection and other information Attract customers who do not want to go to store Flexibility on pricing

Efficient funds transfer

Cost opportunities
Reduce facility costs

Geographical centralization and reduced inventories:

Most effective for low volume, hard to forecast books, least effective for high volume best sellers

Customer

Customer Supermarket

Online Grocer Warehouse (?) Manufacturer On-Line Supply Chain Manufacturer

Supermarket Supply Chain

OPPORTUNITIES FOR ON-LINE GROCER


Revenue opportunities
Attract customers who do not want to go to supermarket Out of town customers for specialty items Menus and other value added

Cost opportunities
Reduced facility costs (sites as well as checkout clerks) Inventory savings from centralization (primarily for slow moving, specialty items)

Reduce Facility Costs


Eliminate retail/distributor sites

Reduce Inventory Costs


Apply the risk-pooling concept Centralized stocking Postponement of product differentiation

Use Dynamic Pricing Strategies to Improve Supply

Chain Performance

Supply Chain Visibility


Reduction in the Bullwhip Effect Reduction in Inventory Improved service level Better utilization of Resources Improve supply chain performance Provide key performance measures Identify and alert when violations occur Allow planning based on global supply chain data

Integrate the Internet with the existing physical network Devise shipment pricing strategies that reflect costs Optimize e-business logistics to handle packages, not pallets Design the e-business supply chain to handle returns efficiently Keep customers informed throughout the order fulfillment cycle

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