E-Supply Chains

Supply Chain
The flow of materials, information, money,
and services from raw material suppliers
through factories and warehouses to the end
customers
e-supply chain
A supply chain that is managed electronically,
usually with Web technologies
7-2
E-upply !hains

Supply chain management (SCM)

The coordination of many activities so that the
shipment of goods and services from supplier to
customer is done efficiently and effectively"

SCM aims to
#$ minimi%e inventory levels,
2$ optimi%e production and increase throughput
&$ decrease manufacturing time,
'$ optimi%e logistics and distribution,
($ streamline order fulfillment, and
)$ reduce the costs associated with these activities
E-Supply Chains
*nfrastructure for e-!+
,
Electronic -ata *nterchange .E-*$
,
E/tranets
,
*ntranets
,
!orporate portals
,
Wor0flow systems and tools1 software to
manage the flow of info in organi%ation
,
2roupware and other collaborative tools
Simple Value Chain
E-SUPPLY CHAIN
Electronic supply-chain management (e-SCM) is the
collaborative use of technology to enhance business-to-
business processes and improve speed, agility, real-time
control, and customer satisfaction. ot about technology
change alone, e-SCM is about cultural change and changes in
management policies, performance metrics, business
processes, and organi!ational structures across the supply
chain.
Enterprise "rocess #lo$
"roduction Materials
Manufacturing
"rocess
%elivered &rders
&rder-#ulfillment
"rocess
"lanning "rocesses
#orecast 'e(uirements
Customer #orecast
"urchase 'e(uirements
Customer &rders
'eturns ) 'epairs
"rocurement "rocess %esign 'e(uirements
Support "rocesses
%esign 'e(uirements %esign
'e(uirements
Settlements Settlements
Suppliers Enterprise Customers
*.Supply-chain replenishment
+.E-procurement
,.Collaborative planning
-.Collaborative product development
..E-logistics
/.Supply $ebs.
COMPONENTS OF THE E-SUPPLY CHAIN
E-upply !hains

e-procurement
The use of Web-based technology to support the 0ey
procurement processes, including re3uisitioning,
sourcing, contracting, ordering, and payment" E-
procurement supports the purchase of both direct and
indirect materials and employs several Web-based
functions such as online catalogs, contracts, purchase
orders, and shipping notices
Collaborative Plannin
Collaborative planning re(uires buyers and sellers to develop a
single shared forecast of demand and a plan of supply to support
this demand, and to update it regularly, based on information
shared over the 0nternet. Collaborative planning is a business-to-
business (1+1) $or2flo$ across multiple enterprises over the
0nternet, $ith data e3changed among them dynamically.

E-Loisti!s
E-logistics is the use of 4eb-based technologies to support
the $arehouse and transportation-management processes. E-
logistics enables distribution to couple routing optimi!ation
$ith inventory trac2ing and tracing information. 0nternet-based
freight auctions allo$ spot buying of truc2ing capacity. 5hird-
party logistics providers offer virtual logistics services by
integrating and optimi!ing distribution resources.

E! olutions along the upply !hain

Order taking can be done

over the *nternet, E-*,
E-*4*nternet, or an e/tranet,
and may be fully automated

Order fulfillment can

become instant if the
products can be digiti%ed

Electronic payments can

e/pedite both the order
fulfillment cycle and the
payment delivery period

Managing risk to avoid

supply-chain brea0down
can be done in several
ways
,
Inventories can be
minimized by introducing a
build-to-order .on-demand$
manufacturing process as
well as by providing fast
and accurate information to
suppliers
,
Collaborative commerce
among members of the
supply chain can be done
in many areas