Slide 1: 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
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.
Able to use the latest computer and transmission technology to schedule and manage the shipment of parts in and finished products out
Collaboration Components of E-Business : 8 Components of E-Business Enterprise SCM Procurement Transportation
Operations e-Commerce Back Office Human
Resource Finance Information
Technology Engineering e-Commerce CRM Marketing Sales Customer
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.
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
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
Customer Interaction (CRM)
First Mover Advantage
Competition Process/Technology Trends : 14 Process/Technology Trends Moving Beyond Traditional Business Functions
Selling & Supply-Chain Management
Customer Relations Management
Enterprise Resource Planning
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:
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
More Open, Flexible, Modular, and Interoperability between Systems, App’s, and the Management of e-Business Functions