E-commerce COM380

E-commerce

Lecture 5

Supply chain management

and E-procurement

E-commerce COM380

E-commerce

Objectives

By the end of the lecture students should: – Appreciate the main elements of supply chain

management

– Appreciate the potential of information systems to support supply and value chain management

– Appreciate the benefits and risks of e-procurement

– Appreciate the integration options with IS and e-procurement suppliers

E-commerce COM380

E-commerce

Supply chain management• What is it?

• Options

E-commerce COM380

E-commerce

Supply chain management• Internal value chain

• External value chain

E-commerce COM380

E-commerce

Logistics

• Inbound logistics

• Outbound logistics

E-commerce COM380

E-commerce

Supply chain models

• Push supply chain

• Pull supply chain

E-commerce COM380

E-commerce

Value chain

• Within each element

• At interface between elements

E-commerce COM380

E-commerce

Internal value chain weakness

• Applicable to manufacturing

• One-way chain

• No emphasis on importance of networks

E-commerce COM380

E-commerce

Value stream

• Problem solving task

• Information management task

• Physical transformation task

E-commerce COM380

E-commerce

Value chain analysis

• Five step analysis

E-commerce COM380

E-commerce

Value networks• Supply-side partners• Partners filling core value chain

activities• Sell-side partners• Value chain integrators

E-commerce COM380

E-commerce

Value networks• Electronic interconnections

• Dynamic nature of network

• Varied partner links

E-commerce COM380

E-commerce

Virtual organisation

• Processes transcend boundaries

• Production processes flexible

• Geographical dispersal

• Telecommunications

E-commerce COM380

E-commerce

Restructuring the supply chain

• Vertical integration

• Virtual integration

E-commerce COM380

E-commerce

Restructuring the supply chain

• Increased efficiency• Reduced complexity• Improved data integration• Reduced cost• Innovation

E-commerce COM380

E-commerce

IS supported supply chain• Upstream supply chain management

• Downstream supply chain management

• Outbound logistics management

E-commerce COM380

E-commerce

IS infrastructure• Supply chain visibility

• Managing the supply chain

E-commerce COM380

E-commerce

SCM strategy process• Managing partnerships

• Managing global distribution

E-commerce COM380

E-commerce

Managing global distribution• Select distributors

• Select distributors capable of developing markets

• Treat local distributors as long-term partners

E-commerce COM380

E-commerce

Managing global distribution• Support market entry

• Control marketing strategy

• Obtain detailed data from distributors

• Build links

E-commerce COM380

E-commerce

E-procurement

• What is it?

E-commerce COM380

E-commerce

E-procurement• At the right price• Delivery at the right time• Are of the right quality• Of the right quantity• From the right source

E-commerce COM380

E-commerce

Types of procurement

(what is bought)• Production-related procurement

• Non-production-related procurement

• MRO goods

E-commerce COM380

E-commerce

Types of procurement

(how it is bought)• Systematic sourcing

• Spot sourcing

E-commerce COM380

E-commerce

E-procurement

• Drivers

• Reduced purchasing cycle time and cost

• Enhanced budgetary control

• Elimination of administrative errors

E-commerce COM380

E-commerce

E-procurement Aims• Increasing buyers’ productivity

• Lowering prices

• Improving information management

• Improving the payment process

E-commerce COM380

E-commerce

E-procurement outcomes• Cost savings

• Impact on profitability

• Risks and impacts

• Technology risks

E-commerce COM380

E-commerce

E-procurement

• Implementation

• System integration

E-commerce COM380

E-commerce

E-procurement

• Electronic B2B marketplaces

• Types of marketplace– Systematic sourcing

– Spot sourcing

– Metamediaries

E-commerce COM380

E-commerce

E-procurement

• Automated E-purchasing

• Software agents

E-commerce COM380

E-commerce

Objectives– Appreciate the main elements of supply chain

management– Appreciate the potential of information systems

to support supply and value chain management – Appreciate the benefits and risks of e-

procurement– Appreciate the integration options with IS and

e-procurement suppliers