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1 Issues and Directions inSupply Chain ManagementJerry FjermestadNew Jersey Institute of TechnologyOctober 29, 2004

Issues and Directions in Supply Chain Management : 

2 Issues and Directions in Supply Chain Management SCM What is it? From Business to E-Business Process/Technology Trends Issues Directions Conclusions

Supply-Chain ManagementWhat is it? : 

3 Another term for e-commerce Integration of all activities within and between enterprises that procure materials and services (purchasing, outsourcing- relationship management) transform them into intermediate and final goods (production – MRP, ERP) deliver to customers (transportation) data collection, data transmission, storage and analysis (Data warehousing, Business intelligence, data mining, knowledge management) Supply-Chain ManagementWhat is it?

Supply-Chain ManagementWhat is it? : 

4 Supply-Chain ManagementWhat is it? Objective is to build a “chain” of suppliers that will maximize customer value Integrates with- accounting, finance, marketing, HR, OM, IS/IT, Engineering The supply chain is the “Value Chain”

The Supply Chain : 

5 The Supply Chain

The Supply Chainwith Technology : 

6 The Supply Chainwith Technology B2B ERP B2C CRM JIT

Supply Chain Issues : 

7 Supply Chain Issues Flexible enough to react to sudden changes in parts availability, distribution or shipping channels, import duties, currency rates, etc. agility Able to use the latest computer and transmission technology to schedule and manage the shipment of parts in and finished products out Technology Collaboration

Components of E-Business : 

8 Components of E-Business Enterprise SCM Procurement Transportation Management Warehouse Management Manufacturing Operations e-Commerce Back Office Human Resource Finance Information Technology Engineering e-Commerce CRM Marketing Sales Customer Service Marketing Intelligence Knowledge Management Infrastructure Management Change Management Suppliers Customers Source: Shaw, Michael. “Building an E-Business from Enterprise Systems.” Information Systems Frontiers, 2000. Pgs 7-17.

What is E-Business? : 

9 What is E-Business? Zwass’s (2003) Definition E-commerce is sharing business information, maintaining business relationships, and conducting business transactions by means of telecommunications networks. Includes Collaboration- Relationships and transactions within & between firms. Processes supporting e-commerce within & between firms. Technology supporting e-commerce within & between firms

From Traditional to Internet-Driven : 

10 From Traditional to Internet-Driven Began as EDI Computer-Computer Exchange of Documents The Internet and WWW have extended this dramatically Today inter-organizational and intra-organizational business processes are inseparable. Must understand business in the context of networks

The Web as a New Channel : 

11 The Web as a New Channel The enterprise information system supports supply-chain processes and process coordination within and between enterprises. The infrastructure includes: global information network for supporting various electronic services electronic access to external data, and electronic connections to customers that support activities. SCN activities is the component technology

Process/Technology Trends : 

12 Process/Technology Trends Trends Driving Change Speed to Market is Getting Shorter Enterprise Boundaries Are Disappearing for both Internal and External- SCM Expectations Related to Technology Have Changed - Need Collaboration Customers Employees Managers Partners

Process/technology Trends : 

13 Process/technology Trends Global Networking Streamlining Business processes (BPR) Sharing Information (DW-BI) Agility to Responding to Market Changes Decision Making Capabilities Shifting Market Focus – New Channel Product Distribution Marketing Customer Interaction (CRM) Market Driven First Mover Advantage Competition

Process/Technology Trends : 

14 Process/Technology Trends Moving Beyond Traditional Business Functions Selling & Supply-Chain Management Customer Relations Management Electronic Commerce Enterprise Resource Planning E-Procurement Business Intelligence Enterprise Applications

Components of e-Business : 

15 Components of e-Business Use of Web to Coordinate traditional and e-Business functions in SCM, Back-office functions, & CRM Success will be how well Knowledge, Infrastructure, and Change is Managed between the Components

Enterprise Resource Planning : 

16 Enterprise Resource Planning ERP is the heart of e-Business it supports: eCommerce B2B Coordination Internal and External Processes Can Support both “Capacity-based” and “Sense and Respond” Strategies

Future directions : 

17 Future directions Web can add new ways to: Coordinate Workflow- ERP and SCM Manage Projects- Collaborative Project Management Manage Teams- Virtual Teams

Conclusions : 

18 Conclusions E-Business Moving Forward - Eliminate Proprietary System BarriersEnterprise Integration Emergence of JIT and Focused Manufacturing -SCM Virtual Enterprises Growth Expanded Dimensions into CRM and B2B

Conclusions : 

19 Conclusions E-Business as Seen in the Future Integration with: B2B Transactions Channel partners Supply-Chain Processes CRM More Open, Flexible, Modular, and Interoperability between Systems, App’s, and the Management of e-Business Functions

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