ELC 200 Day 23. Agenda Questions? Scholar’s Symposium April 25 Assignment

ELC 200Day 23

AgendaQuestions?Scholars Symposium April 25http://www.umfk.edu/academics/symposium/ Assignment 7 postedDue April 25 ELC 200 assignment 7.pdf Optional Assignment 8 Posted Due May 2 @ Midnight Replaces lowest assignment score. Framework initiative guidelines postedinitiative framework guidlines.pdfDue May 6 Course Evaluations Finish Discussion on B2B E-commerce: Supply Chain Management and Collaborative Commerce

End of Semester Time LineApril 25Scholars Symposium Assignment 7 dueApril 29Quiz 4 (Chaps 8-11)20 M/C4 Short EssaysOpen Book, Open Notes80 Min.Extra Credit Question worth 6 points

May 2Review for Final Exam Optional Assignment 8 DueMay 6 @ 10 AMeCommerce Papers and Presentations Due One hour before Copyright 2014 Pearson Education, Inc.Slide 1-*

E-commerceEssentialsKenneth C. LaudonCarol Guercio Traver

first edition

Copyright 2014 Pearson Education, Inc.

Chapter 11B2B E-commerce: Supply Chain Management and Collaborative Commerce

Copyright 2014 Pearson Education, Inc.

6-* 2007 Prentice-Hall, IncCycle of an AP Transaction

Sheet1

Dept Purchase Requirement/Requisition(see PO requirements)

Give PO to Vendor, Dept contact name, phone number & box #

Vendor ships goods to Dept - Packing Slip as record

Vendor sends invoice to Accounting

Accounting process invoice for payment

Invoice over $2,500?

Payment to vendor on due date

Copy of invoice to Dept for reviewScheduled to pay

Voucher put on hold status

Invoice sent to Dept for approval(copy for file)

Invoice returned with authorization

Voucher created - Invoice paid

NO

YES

Sheet2

Sheet3

Trends in Supply Chain ManagementSupply chain management (SCM) Activities used to coordinate key players in the procurement processMajor developments in SCMJust-in-time and lean productionSupply chain simplificationAdaptive supply chainsAccountable supply chainsSustainable supply chainsElectronic data interchangeSupply chain management systemsCollaborative commerceCopyright 2014 Pearson Education, Inc.Slide 11-*

Just-in-Time and Lean ProductionJust-in-Time productionMethod of inventory cost managementSeeks to eliminate excess inventory to bare minimumLean productionSet of production methods and toolsFocuses on elimination of waste throughout customer value chain, not just inventory Copyright 2014 Pearson Education, Inc.Slide 11-*

Supply Chain SimplificationReducing size of supply chainWorking with strategic group of suppliers to reduce product and administrative costs and improving qualityEssential for just-in-time production modelsMay involve:Joint product development and designIntegration of computer systemsTight couplingEnsuring precise delivery of ordered parts at specific timesCopyright 2014 Pearson Education, Inc.Slide 11-*

Adaptive Supply ChainsReducing centralizationReduce risks caused by relying on single suppliers who are subject to local instabilitye.g.: European financial crisis, Japanese earthquakeCreating regional or product-based supply chainsAllowing production to be moved to temporary safe harbors in case of local manufacturing disruptionsCopyright 2014 Pearson Education, Inc.Slide 11-*

Accountable Supply ChainsLabor conditions in low-wage, under-developed producer countries are acceptable to consumersSlave/forced labor http://www.dol.gov/ilab/reports/child-labor/list-of-goods/ Child laborRoutine exposure to toxic substancesMore than 48 hrs/weekHarassment and abuseSexual exploitationAdequate compensationCopyright 2014 Pearson Education, Inc.Slide 11-*

Sustainable Supply ChainsTaking social and ecological interests into accounte.g.: Water usage, air pollutionBased on UN 1987 Brundtland report Our Common Future Using most efficient environmentregarding means of production, distribution, logistics Good business, over long-term Create value for consumers, investors, communitiesCopyright 2014 Pearson Education, Inc.Slide 11-*

Electronic Data Interchange (EDI)Broadly defined communications protocol for exchanging documents among computersStage 1: 1970s1980sDocument automationStage 2: Early 1990sDocument eliminationStage 3: Mid-1990sContinuous replenishment/access modelCopyright 2014 Pearson Education, Inc.Slide 11-*

Supply Chain Management SystemsContinuously link activities of buying, making, and moving products from suppliers to purchasing firmsSAP and Oracle Mobile apps for smartphones, tabletsIntegrates demand side of business equation by including order entry system in the processWith SCM system and continuous replenishment, inventory is eliminated and production begins only when order is receivedDemand pull manufacturing Dell ComputerCopyright 2014 Pearson Education, Inc.Slide 11-*

Collaborative CommerceUse of digital technologies for organizations to collaboratively design, produce, and manage products through life cyclesMoves focus from transactions to relationships among supply chain participantsUnlike EDI, more like an interactive teleconference among members of supply chainUse of Internet technologies for rich communications environmentSharing designs, documents, messages, network meetings, videconferencingCopyright 2014 Pearson Education, Inc.Slide 11-*

Social Networks and B2BSocial networks can provide personal connections that can help decision-making in supply chainMany supply chain networks are privateOthers on FacebookCopyright 2014 Pearson Education, Inc.Slide 11-*

Two Main Types of Internet-based B2B CommerceNet marketplaces Bring together potentially thousands of sellers and buyers in single digital marketplace operated over InternetTransaction-basedSupport many-to-many as well as one-to-many relationshipsPrivate industrial networks Bring together small number of strategic business partner firms that collaborate to develop highly efficient supply chainsRelationship-basedSupport many-to-one and many-to-few relationshipsLargest form of B2B e-commerceCopyright 2014 Pearson Education, Inc.Slide 11-*

Net MarketplacesWays to classify Net marketplacesPricing mechanism, nature of market served, ownershipBy business functionalityWhat businesses buy (direct vs. indirect goods)How businesses buy (spot purchasing vs. long-term sourcing)Four main typesE-distributorsE-procurementExchangesIndustry consortiaCopyright 2014 Pearson Education, Inc.Slide 11-*

E-distributorsMost common type of Net marketplaceElectronic catalogs representing products of thousands of direct manufacturersTypically, independently owned intermediariesOffer industrial customers single source to purchase indirect goods on spot basisTypically, horizontalUsually, fixed pricediscounts for large customerse.g.: W.W. Grainger; McMaster-Carr Copyright 2014 Pearson Education, Inc.Slide 11-*

E-procurement Net MarketplacesIndependently owned intermediariesConnect hundreds of suppliers of indirect goodsFirms pay fees to join marketRevenues from transaction fees, licensing consultation services and software, network feesOffer value chain management (VCM) servicese.g.: AribaCopyright 2014 Pearson Education, Inc.Slide 11-*

ExchangesIndependently owned online marketplaces Connect hundreds to thousands of suppliers and buyers in dynamic, real-time environmentVertical markets, spot purchasing in single industryCharge commission fees on transactionMany have failed due to low liquidityFailed to reach critical mass of sellers and buyers Copyright 2014 Pearson Education, Inc.Slide 11-*

Industry ConsortiaIndustry-owned vertical markets Purchase of direct inputs from set of invited participantsEmphasize long-term contractual purchasing, stable relationships, creation of data standardsUltimate objective:Unification of supply chains within entire industries through common network and computing platformRevenue from transaction and subscription feesMany different pricing mechanismsCan force suppliers to use consortias networksCopyright 2014 Pearson Education, Inc.Slide 11-*

Private Industrial NetworksPrivate trading exchanges (PTXs)Web-enabled networks for coordination of trans-organizational business processes (collaborative commerce)Direct descendant of EDI; closely tied to ERP systemsManufacturing and support industriesSingle, large manufacturing firm sponsors networkRange in scope from single firm to entire industrye.g.: Procter & GambleCopyright 2014 Pearson Education, Inc.Slide 11-*

P&Gs Private Industrial NetworkFigure 11.14, Page 439Copyright 2014 Pearson Education, Inc.Slide 11-*

Insight on Business: Class Discussion

Walmart Develops aPrivate Industrial NetworkWhat is Walmarts Retail Link system and how has it changed since the early 1990s?Why is Walmart still using EDI-based systems?Why wont Walmart join in an industry-backed system?How can other companies compete with Walmart?http://corporate.walmart.com/suppliers/references-resources/supplier-support-center Copyright 2014 Pearson Education, Inc.Slide 11-*

Private Industrial Networks and Collaborative CommerceForms of collaborationCollaborative resource planning, forecasting, and replenishment (CPFR)Working with network members to forecast demand, develop production plans, and coordinate shipping, warehousing and stocking activities to ensure that retail and wholesale shelf space is replenished with just the right amount of goodsDemand chain visibilityMarketing coordination and product designCan ensure products fulfill claims of marketingFeedback enables closed loop marketingCopyright 2014 Pearson Education, Inc.Slide 11-*

Documents

ELC 200 Day 23. Agenda Questions? Scholar’s Symposium April 25 Assignment