供应链物流管理中科院 龚其国三chapter14

1、Which E-Business is Right for Your Supply Chain?9/1/00S. Chopra/e-business1Learning Objectives What is different about e-commerce? What are some potential opportunities in a supply chain? Implications of e-business in different industries9/1/00S. Chopra/e-business2What is E-Business? Business transa

2、cted over the Internet Is product information displayed on the Internet? Is negotiation over the Internet? Is the order placed over the Internet? Is the order tracked over the Internet? Is the order fulfilled over the Internet? Is payment transacted over the Internet?9/1/00S. Chopra/e-business3Exist

3、ing Channels for Business Product information Physical stores, EDI, catalogs, face to face, Negotiation Face to face, phone, fax, sealed bids, Order placement Physical store, EDI, phone, fax, face to face, Order tracking EDI, phone, fax, Order fulfillment Customer pick up, physical delivery9/1/00S.

4、Chopra/e-business4Potential Revenue Opportunities from E- Business Direct sales to customers 24 hour access for order placement Information aggregation Information sharing in supply chain Flexibility on pricing and promotion Price and service discrimination Faster time to market Efficient funds tran

5、sfer - reduce working capital9/1/00S. Chopra/e-business5Potential Cost Opportunities from E- Business Direct customer contact for manufacturers Coordination in the supply chain Customer participation Postpone product differentiation to after order is placed Downloadable product Reduce facility costs

6、 Geographical centralization and resulting reduction in inventories9/1/00S. Chopra/e-business6Basic evaluation framework How does going on line impact revenues? How does going on line impact costs? Facility (site + personnel) Inventory Transportation Information Should the e-commerce channel positio

7、n itself for efficiency or responsiveness? Who in the supply chain can extract most value?9/1/00Is the value to exSi.sCthionprag/e-bpuslianeyss ers or new entrants? 7The Computer Industry: Dell on-lineProcurement CycleCustomer Order and Manufacturing CycleProcurement cyclePUSH PROCESSESPULL PROCESSE

8、SCustomer Order and Manufacturing CycleCustomer Order ArrivesDell Supply Chain Cycles9/1/00S. Chopra/e-business8Potential opportunities exploited by Dell Revenue opportunities 24 hour access for order placement Direct sales Providing customization and large selection information Flexibility on prici

9、ng and promotion Faster time to market Efficient funds transfer - reduce working capital Revenue negatives Longer response time than store and no help with9/1/00selectionS. Chopra/e-business9Potential opportunities exploited by Dell Cost opportunities Direct sales eliminating intermediary Customer p

10、articipation: Call center & catalog costs Information sharing in supply chain Reduce facility costs Geographical Centralization and reduced inventories Postpone product differentiation to after order is placed using product platforms and common components Outbound transportation costs increase9/1/00

11、S. Chopra/e-business10Opportunities Significant, but must be combined with component commonality, and build to order. Must move product customization to pull phase of supply chain and hold inventories as common components during the push phase Opportunity most significant for new, hard to forecast p

12、roducts Complements strength of existing retail channels9/1/00S. Chopra/e-business11Retailing: A9/1/00S. Chopra/e-business12Customer AmazonCustomerRetail StoreWarehouse (?)PublisherPullPullDistributorPublisherAmazon Supply ChainBookstore Supply ChainPotential opportunities exploited by Amaz

13、on Revenue opportunities 24 hour access for order placement Providing large selection and other information Attract customers who do not want to go to store Flexibility on pricing Efficient funds transfer Revenue negatives Intermediary (distributor) reduces margin Longer response time than bookstore

14、9/1/00S. Chopra/e-business14 Cost opportunities Reduce facility costs Geographical centralization and reduced inventories: Most effective for low volume, hard to forecast books, least effective for high volume best sellers Cost increases Outbound transportation costs increase Handling cost increaseO

15、pportunities Going on-line, by itself, offers lower cost advantages (may be some disadvantages) than in Dell model given current form of books Cost and availability advantages are more significant for low volume books On-line channel has significant cost benefit ifbooks are downloadable9/1/00S. Chop

16、ra/e-business15How should bookstore chains react? An on line channel allows it to match Amazons revenue advantages Use a hybrid approach in stocking and pricing High volume books for local storage Low volume books for browsing and purchase on line Pricing varies by delivery and pick up option9/1/00S

17、. Chopra/e-business16Grocery on-lineCustomerOnline GrocerManufacturerCustomerSupermarketWarehouse (?)Manufacturer9/1/00S. Chopra/e-business17On-Line Supply ChainSupermarket Supply ChainPotential opportunities for on line grocer Revenue opportunities Attract customers who do not want to go to superma

18、rket Out of town customers for specialty items Menus and other value added Cost opportunities Reduced facility costs (sites as well as checkout clerks) Inventory savings from centralization (primarily for slow moving, specialty items)9/1/00S. Chopra/e-business18Added costs for online grocer Addition

19、al outbound transportation cost: Have to cover the last mile to the customer Additional picking and packing costs9/1/00S. Chopra/e-business19Opportunities Negligible opportunity to compete on cost, except maybe for specialized low volume items Competition has to be on convenience or some other form

20、of value added To lower delivery cost disadvantage, must be more than on-line grocery Greatest opportunity may be for supermarket chains to expand value offering9/1/00S. Chopra/e-business20Key Messages Some supply chains are better suited to exploit the cost benefits of going on-line Ability to incr

21、ease processes in pull phase Ability to delay product differentiation Big inventory benefit from geographical centralization Significant facility cost reduction on centralization Transport to customer is a small fraction of product costAll are achieved if product is downloadable9/1/00S. Chopra/e-bus

22、iness21B2B: W.W. Grainger Revenue opportunities 24 hour access for order placement Large selection information with simple search Display of substitutable products Flexibility on pricing and promotion Ability to alert customer of order status Faster time to market9/1/00S. Chopra/e-business23 Cost op

23、portunities Reduced order taking costs Reduced order placement costs for customers Reduced error because of multiple data entry Reduced catalog costsB2B: FreeMarkets The worldwide market for direct materials procurement is approximately $5 trillion, with the U.S. segment at approximately $1 trillion

24、Morgan Stanley Dean Witter Internet Industry ResearchFreeMarkets is a B2B Internet company that creates online auctions for procurers of direct materials MSDW Claim: FreeMarkets clients typically achieve savings of 2% to 25%9/1/00S. Chopra/e-business24B2B: Matching Base Demand and Capacity Potential opportunities Ability to reach more bidders and get lower unit price Key questions What does it do to total cost of material? How many bidders do you need to ach