E-Supply Chain Technologies & Applications EBC 6230 Winter Session 2014

Title : Knowledge Management in e-Supply Chain Management

Submitted to: Dr. Mohamed Baymout Prepared by:

Syed Wasee Hassan (7112279) Shoiab Anwar (7121811) Farhaj Niazi (7091684)

Knowledge Management System in E-Supply Chain Management

Agenda
Introduction What is knowledge management system? Knowledge management in e-SCM

Benefits of knowledge management in e-SCM

Components of knowledge management system The process of knowledge management in e-SCM

Case Study
Conclusion

Introduction

Knowledge Management System

Support creation, capture, storage and dissemination of information. Enable employees to have ready access to the organization's documented base of facts, sources of information, and solutions. Increases the efficiency of the organization by keeping the cost to minimum.

Long term survival in this increasingly competitive environment.

Components of KM
Different components of knowledge management system; Repositories Collaborative Platform Network
Internal Stakeholders

Culture

KM in e-SCM; an extension
Integration of information into the system to: Coordinate flow of asset Data analysis Development of expertise Performance analysis Information dissemination

Why?
Cost is decreased Communication is improved Higher profit Better decisions

Creates an edge in the competitive environment

Enhanced information
Time management

Better decisions
Overall performance enhancement

Provisions the achievement of strategic business aims

The Process!
A unifying framework for supply chain knowledge management

Congenital Learning

Vicarious Learning

Experiential + Vicarious Learning

Supply Chain Knowledge Transfer

Supply Cain Competence

Experiential Learning

Supply Chain Maturity

Absorptive Capacity

Knowledge as a Critical Input for Performance Improvement

Three types of knowledge
1. 2. 3. Tacit Knowledge Explicit knowledge New knowledge

Source: Transformational Supply Chains and the Wicked Problem of Sustainability

Performance Problems in Supply Chain

Bullwhip Effect;
Supplier demand variability up the supply chain

Minimizing the Bullwhip effect Information Sharing

Knowledge is Information in context
Inventory Level - Data shared between supply chain partners
- Continuous Replenishment Program, Vendor Management
Inventory

Sales Data - Communicating demand information exclusively in the form of orders

Minimizing the Bullwhip effect Information Sharing

Order status for tracking
- Customer

can find order status in any supply chain

Sales Forecast
- Collaborative

Forecasting and Replenishment

Production/delivery schedule
- Use

of suppliers production or delivery schedule to improve its own

production schedule - Schedule sharing

Koon's Automotive Background

The case study focuses on the prospective use of a knowledge management system (KMS) in a dealers ordering decision for automotive service parts, and the resultant effects on overall supply chain performance.

Case Study;

Introduction
Jim Koons Automotive sells new and used cars made by Daimler Chrysler, Ford, Volvo and several others from 15 dealer locations in Virginia and Maryland and an online internet sales site and is ranked 18th in US in terms of sales. Koons' mission statement encourages strategies that emphasize customer satisfaction over strategies that emphasize cost minimization.

Service Parts Management

The parts department of Koons flagship dealership at Tysons Corner is the focus in the study. The dealership sells new Chrysler car, and new Chevrolet cars and trucks, as well as a variety of used cars through their used car department.

UCS (Universal Computer systems)

OEMs Local vendors Wholesale suppliers

Checking Parts availability?

Chrysler-online
GM-Phone

Jim Koons Automotive Supply Chain

Problems in the Service Parts Department

Supply Parts Inventory of 2.8 months. Overhead Expenses. Complicated promotions by the OEMs. Freight Costs. OEM Promotions GM - Offers standard quantity discounts, time based promotions. Chrysler - 60 page catalogue, 2 page brochure quarterly.

Complexity in Promotions
Time consuming process for the managers Depleting stock in hand to low levels

Too much information for the manager (current and projected inventory levels, specific quantity discount schemes, parts availability, etc.)

No integrated information for the managers to maximize the discount schemes while holding inventory at a desired level.

Knowledge in the Service Parts Ordering Problem

SCM & KM Issues: 1. 2. 3. 4. Deciding How much to order and when? Error and Uncertainty associated with the Forecast. Efficacy of the service parts department incentive structure. Data related issues.

A Knowledge Management Approach to a Solution

The ability to access OEM promotions electronically. A simulation facility. The ability to integrate OEM promotions with the existing on-line ordering facility.

Conclusion
Knowledge management can enhance the degree of success of existing SCM efforts as well as increase the likelihood of success of new SCM undertakings. Generating innovation consistent with its knowledge foundation.

Thank You!