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Supply Chain
Management
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Reference:
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Contents
Definition of e-supply chain
Case study on General Motors.
Supply chain problems and their
causes.
Solutions to supply chain
problems provided by EC.
Discuss on integration along the
supply chain.
Example
Conclusion
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E-Supply Chain
Management
What is it?
The coordination and movement of products,
information and currency from the suppliers through
manufacturing
to the customers
Suppliers Manufacturers Distributors Retailers Consumers
Constructing business
electronically
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Fast, Global Reach
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How General Motors Is
Collaborating Online?
The Problem
Information regarding a new car
design has to be shared among a
pool of approximately 20,000
designers and engineers in
hundreds of divisions and
departments at 14 GM design labs,
some of which are located in
different countries.
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How General Motors Is
Collaborating Online
(cont.)
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How General Motors Is
Collaborating Online
(cont.)
The Solution
GM began by examining over 7,000
existing legacy IT systems, reducing
that number to about 3,000 and
making them Web enabled.
A computer-aided design (CAD)
program that allows 3D design
documents to be shared online by both
the designers (internal and external)
and engineers .
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How General Motors Is
Collaborating Online
(cont.)
Collaborative and Web conferencing
software tools have radically changed
the vehicle review process.
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E-Supply Chains
The success of organizations
depends on their ability to manage
the flow of materials, information,
and money into, within, and out of
the organization.
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E-Supply Chains (cont.)
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E-Supply Chains (cont.)
The success of an e-supply chain
depends on:
The ability of all supply chain partners
to view partner collaboration as a
strategic asset.
Information visibility along the entire
supply chain.
Speed, cost, quality, and customer
service.
Integrating the supply chain segments
more tightly.
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E-Supply Chains (cont.)
E-supply chain consists of six
processes:
Supply chain replenishment
E-procurement
Collaborative planning
Collaborative design and product
development
E-logistics
Use of B2B exchanges and supply
webs
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E-Supply Chains (cont.)
Major infrastructure elements
and tools of e-supply chains
are:
Extranets
Intranets
Corporate portals
Workflow systems and tools
Groupware and other
collaborative tools
EDI and EDI/Internet 22
Supply Chain Problems
and Solutions
Typical problems along the
supply chain
Slow and prone to errors because
of the length of the chain
involving many internal and
external partners.
Large inventories without the
ability to meet demand.
Insufficient logistics
infrastructure.
Poor quality. 23
Supply Chain Problems
(cont.)
Bullwhip effect: Erratic shifts
in orders up and down supply
chains
Creates production and inventory
problems.
Stockpiling can lead to large
inventories.
Effect is handled by
information sharing—
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Supply Chain Problems
(cont.)
Information systems are the links
that enable communication and
collaboration along the supply
chain
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Integration along the
Supply Chain Example:
Toshiba USA
Toshiba created a Web-based order
entry system for product parts using
an extranet and intranets
Dealers can place orders for parts until
5:00 P.M. for next-day delivery without
extra charges.
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Conclusion
Perhaps the most exciting future direction for e-
SCM lies in the collaboration area. Several
fortuitous events are converging.