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1、Supply Chain Information Sharing,Arun Rai eCommerce Institute Robinson College of Business Georgia State University Atlanta, GA 30303 ,ECM 8400 Supply Chain Management for eCommerce Fall 2000 September 5, 2000,Agenda,The bullwhip effect Types of information shared Models of information

2、 sharing Challenges to information sharing Supply chain metrics Wrap-up,The Bullwhip Effect,Customer,Retailer,Distributor,Factory,Tier 1 supplier,Equipment,Upstream amplification of demand variation Progression of a brushfire to an inferno!,Machine Tools at Bullwhip Tip,The Diaper Supply Chain!,Ripp

3、les to tidal waves Stockpiles and stockouts Insufficient or excessive capacities Higher costs,Types of Shared Information,Inventory information Transition to echelon-based inventory systems Upstream companies can determine when and what to produce Downstream companies can improve service levels with

4、 less inventory The Apple-Fritz Supplier Hub Fritz manages entire inbound logistics for Apple Consolidates freight, clears customs, manages the hub, manages local transportation to Apple FLEX system Competitor sharing of inventory information,Types of Shared Information,Sales Data Variance of orders

5、 greater than that of sales The “bullwhip effect” - four key causes Demand signal processing Move to sharing sell-through data and POS retail data Order batching Infrequent access to demand information Order rationing Hoarding of scare products Promotions,Types of Shared Information,Sales Data Varia

6、nce of orders greater than that of sales The “bullwhip effect” - four key causes Demand signal processing Move to sharing sell-through data and POS retail data Order batching Infrequent access to demand information Order rationing Hoarding of scare products Promotions,Types of Shared Information,Ord

7、er status for tracking/tracing MircoAge-UPS alliance Impacts on: Customer service Payment cycle Labor cost,Types of Shared Information,Sales Forecast Vendor Managed Inventory Collaborative Forecasting and Replenishment Quantity-Flexible contracts Buyer allowed to make limited changes to forecast inf

8、ormation shared with suppliers. Why?,Types of Information Sharing,Production/Delivery Schedule Improves due-date estimation Expand planning horizons Other Information Sharing Performance metrics Capacity information,Models of Information Sharing,Information Transfer Model Transfer information to the

9、 other who maintains the database for decision-making Natural evolution of EDI-based transactional model MicroAge -UPS Seven Eleven Japan EDI Limitations Multiple industry-specific standards Rigid design for transaction processing Rigid text formats Batch-oriented Installation costs,Models of Inform

10、ation Sharing,Third Party Model Third party collects and maintains supply chain information Apple- Fritz alliance, with Fritz as the 3rd party Instill corporation () in the food services industry Digital markets () in the electronic parts market,Models of Information Sharing,Information Hub Model Th

11、ird party is replaced by a system Pandesics () e-business solutions (Intel and SAP),From EDI to MSPs: The shifting focus of applications and their providers,Sellers,Buyers,Application providers (point-to-point-EDI),App. Service Providers (ASPs),eHub,Marketplace provider,Challenges,Aligning incentive

12、s of different partners Trust and cooperation Confidentiality of shared information Anti-trust implications, such as possible price fixing behavior Timeliness and accuracy of information Technological constraints,Be demand-driven and supply-aware Enterprise-wide & inter-enterprise process focus A da

13、shboard must have a few, easily measurable metrics that monitor the pulse of the supply chain Visible cost segment metrics to total cost metrics Price-based procurement to total acquisition cost Essential to determine true margins,Deploying an Effective SCM Measurement System,Supply Chain Function &

14、 Costs,SC, Functions & Costs,Physical Function,Market mediation function,Physical Function,Physical Function (converting raw materials into parts, component & finished goods, & transportation).,Production,Inventory,Transportation,Minimize inventory & maximize production efficiency,SC flow of informa

15、tion critical Suppliers, manufacturers, & retailers coordinate activities to meet predictable demand at lowest cost.,Physical efficiency:,Some Measures,Plant capacity utilization,Inventory Turns,Market Mediation Function,Market mediation function (variety of products reaching the marketplace matches

16、 what consumers want to buy,Supply Demand,Demand Supply,Mark downs,Lost sales,Dissatisfied customers,Critical flow of information from marketplace to the chain,Speed & Flexibility,Contribution margin X stockout% = % of sales costs,Some measures: Product availability, Fill rate, Fulfillment time,The Bottom-line of SCM,Net Profit after Tax Revenue growth Revenue growth by segment Operating cost reductions Total delivered cost Structural reduction/cost flexibility Tax minimization Worldwide effective tax rate,Return on Assets F

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