8/3/2019 Unit 31 Criteria 3-1&2

1/52

Session 11

Unit 31: E-business Operations

8/3/2019 Unit 31 Criteria 3-1&2

2/52

Learning Outcomes

3-1 Differentiate between the differenttypes of web auction

3-2 Describe the use of electronic

marketplaces and industry networksfor supply chain management

8/3/2019 Unit 31 Criteria 3-1&2

3/52

Topics

Review of Last session

Group Report

Lecture

Web auctions Electronic marketplaces and industrynetworks

8/3/2019 Unit 31 Criteria 3-1&2

4/52

Review of Last Session

8/3/2019 Unit 31 Criteria 3-1&2

5/52

Topics Discussed

Criteria 1-1 to 2-4

Submission of Assignment

31-01

8/3/2019 Unit 31 Criteria 3-1&2

6/52

Test of Baseline Knowledge

8/3/2019 Unit 31 Criteria 3-1&2

7/52

Test of Baseline

Knowledge What are web auctions?

Types of auctions, name at least 2 sites each

What are electronic marketplaces ? Give 3 samples

What is supply chain management? Researcha diagram. Present a website

What are industry networks? Present awebsite

8/3/2019 Unit 31 Criteria 3-1&2

8/52

CRITERIA 3-1

Differentiate between thedifferent types of webauction

8/3/2019 Unit 31 Criteria 3-1&2

9/52

Web auctions

models developed for use over internet

English auction bids up from a low price,

Dutch auction moves down from a high price until a bid is

made;

uses of web auctions

by buyers for emergency supplies,

by suppliers to dispose of surplus goods;

pricing over the internet Airlines model

Treasury notes model

Prepayments or bulk buy

8/3/2019 Unit 31 Criteria 3-1&2

10/52

Auction

is a process of buying andselling goods or services by

offering them up for bid,taking bids, and then sellingthe item to the highest bidder

(normally).

8/3/2019 Unit 31 Criteria 3-1&2

11/52

Web Auction

one in which participants bidfor products and services over the

Internet. The functionality of buying and

selling in an auction format is made

possible through auctionsoftware which regulates the variousprocesses involved.

8/3/2019 Unit 31 Criteria 3-1&2

12/52

How InternetAuction Works?

Role of the Auction Site.

Registration.

Fees The Auction.

time limit on bidding

a reserve price

After the Auction Arranging to Pay and Deliver Merchandise..

8/3/2019 Unit 31 Criteria 3-1&2

13/52

Payment Options

Credit card,

Online payment service

Debit card, Personal check,

Cashiers check,

Money order, Escrow service.

Wire Transfers.

8/3/2019 Unit 31 Criteria 3-1&2

14/52

Strategic

Strengths No time constraints

No geographical constraints

Intensity of social interactions Large number of bidders

Large number of sellers

Network economies Captures consumers' surplus

8/3/2019 Unit 31 Criteria 3-1&2

15/52

Types of Auction

English

Dutch

Reverse

Second Item

8/3/2019 Unit 31 Criteria 3-1&2

16/52

Uses of Web Auction- Buyer

For emergency supplies

Finding Rare Items Managing Your Budget

Automated Bidding

Customer Protection

8/3/2019 Unit 31 Criteria 3-1&2

17/52

Uses of Web Auction- Seller

Disposing of goods;

Pricing purpose Advertisement

Income

Cost savings

8/3/2019 Unit 31 Criteria 3-1&2

18/52

Pricing of

Web Auction Airlines model

Treasury Notes model

Prepayments or bulk buy

Rare Items

8/3/2019 Unit 31 Criteria 3-1&2

19/52

Criteria 3-2

Describe the use of

electronic marketplacesand industry networks forsupply chain management

8/3/2019 Unit 31 Criteria 3-1&2

20/52

Electronic marketplaces andindustry networks

electronic marketplaces

supply chain industry

cooperation betweenbusinesses

8/3/2019 Unit 31 Criteria 3-1&2

21/52

ElectronicMarketplaces

8/3/2019 Unit 31 Criteria 3-1&2

22/52

Electronic

Marketplaces a location on the Internet where companies can

obtain or disseminate information, engage in

transactions, or work together in some way.

provide cost effective means of purchasing wide

range of MRO (even strategic) items needed byorganisations

8/3/2019 Unit 31 Criteria 3-1&2

23/52

Two basic

functions1) they allow companies to obtain new suppliers or

buyers for company products,

2) developing streamlined trading networks thatmake negotiating, settlement, and delivery more

efficient.

8/3/2019 Unit 31 Criteria 3-1&2

24/52

Key

Considerations Ownership of the E-marketplace

Costs

Ease of Use / Support

Industry Fit

Marketplace Participation

Security / Privacy

Other Services

Process Integration

8/3/2019 Unit 31 Criteria 3-1&2

25/52

Value Added

Functions Forward or reverse auctions,

Vendor catalogues,

Fixed price ordering,

Trading exchange functionality,

Bulletin boards / wanted ads, and

RFQ, RFI, or RFP capability

Others Functions

8/3/2019 Unit 31 Criteria 3-1&2

26/52

Structuring

Neutral

Consortium of Sellers Buyers marketplace

Industry Networks

8/3/2019 Unit 31 Criteria 3-1&2

27/52

Industry Networks

8/3/2019 Unit 31 Criteria 3-1&2

28/52

Industry

Networks Web site that provides information and resources for a

particular industry.

typically provide news, research and statistics,discussions, newsletters, online tools, and many otherservices that educate users/ members about a specific

industry.

have been developed by major manufacturing or retailorganisations to help them coordinate the different

businesses in their supply chains;

8/3/2019 Unit 31 Criteria 3-1&2

29/52

Strategic use

Customer integration

eProcurement

eCommerce or online catalogs

Logistics optimization

Product availability or Pricing

Product design or collaboration

Inventory management

Payments automation

and others

8/3/2019 Unit 31 Criteria 3-1&2

30/52

Sample

Industry Networks Biotech and Life Sciences

High-tech and Semiconductor

Wholesale Distribution

Manufacturing

Financial Services and Banking

Public Sector

Education

8/3/2019 Unit 31 Criteria 3-1&2

31/52

BusinessCooperation

8/3/2019 Unit 31 Criteria 3-1&2

32/52

Business

Cooperation cooperation between

businesses using an industrynetwork

8/3/2019 Unit 31 Criteria 3-1&2

33/52

Uses

marketing,

product development, forecasting and planning,

production,

transportation and logistics

8/3/2019 Unit 31 Criteria 3-1&2

34/52

Supply Chain

8/3/2019 Unit 31 Criteria 3-1&2

35/52

Supply Chain

Management Supply Chain: the sequence of

organizations - their facilities, functions,

and activities - that are involved inproducing and delivering a product orservice.

Sometimes referred to as value chains

8/3/2019 Unit 31 Criteria 3-1&2

36/52

Supply Chain

need for organisation to developclose relationship with first tiersuppliers who in turn are dependenton own second tier suppliers

especially for strategically importantmaterials;

8/3/2019 Unit 31 Criteria 3-1&2

37/52

Warehouses

Factories

Processing centers

Distribution centers

Retail outlets

Offices

Supply ChainFacilities

8/3/2019 Unit 31 Criteria 3-1&2

38/52

Supply Chain

Sample Diagram

8/3/2019 Unit 31 Criteria 3-1&2

39/52

Typical SupplyChains

Purchasing Receiving Storage Operations Storage

Production Distribution

8/3/2019 Unit 31 Criteria 3-1&2

40/52

Typical Supply Chain for aManufacturer

Supplier

Supplier

Supplier

Storage} Mfg. Storage Dist. Retailer Customer

Figure 14.1a

8/3/2019 Unit 31 Criteria 3-1&2

41/52

Supplier

Supplier

} Storage Service Customer

Typical SupplyChain for a ServiceFigure 14.1b

8/3/2019 Unit 31 Criteria 3-1&2

42/52

1. Improve operations

2. Increasing levels of outsourcing

3. Increasing transportation costs4.Competitive pressures

5. Increasing globalization

6. Increasing importance of e-commerce

7.Complexity of supply chains

8.Manage inventories

Need for SupplyChain Management

8/3/2019 Unit 31 Criteria 3-1&2

43/52

Benefits of Supply ChainManagement

Lower inventories

Higher productivity

Greater agility

Shorter lead times

Higher profits

Greater customer loyalty

El t f S l Ch i

8/3/2019 Unit 31 Criteria 3-1&2

44/52

Elements of Supply ChainManagement

Deciding how to best move and store materialsLogistics

Determining location of facilitiesLocation

Monitoring supplier quality, delivery, and relationsSuppliers

Evaluating suppliers and supporting operationsPurchasing

Meeting demand while managing inventory costsInventory

Controlling quality, scheduling workProcessing

Incorporating customer wants, mfg., and timeDesign

Predicting quantity and timing of demandForecasting

Determining what customers wantCustomers

Typical IssuesElement

Table 14.1

S f l

8/3/2019 Unit 31 Criteria 3-1&2

45/52

SuccessfulSupply Chain

Trust among trading partners

Effective communications

Supply chain visibility

Event-management capability

The ability to detect and respond to unplannedevents

Performance metrics

8/3/2019 Unit 31 Criteria 3-1&2

46/52

Metrics

Perspective Metrics

Reliability On-time delivery

Order fulfillment lead time

Fill rate (fraction of demand met from stock)

Perfect order fulfillment

Flexibility Supply chain response time

Upside production flexibility

Expenses Supply chain management costs

Warranty cost as a percent of revenue

Value added per employeeAssets/utilization Total inventory days of supply

Cash-to-cash cycle time

Net asset turns

Table 14.4

S l Ch i

8/3/2019 Unit 31 Criteria 3-1&2

47/52

Supply ChainPerformance Drivers

1.Quality

2.Cost

3.Flexibility

4.Velocity

5.Customer service

8/3/2019 Unit 31 Criteria 3-1&2

48/52

Supply ChainTerms

Bullwhip effect

Inventories are progressively larger

moving backward through thesupply chain

8/3/2019 Unit 31 Criteria 3-1&2

49/52

Bullwhip Effect

Tier 2

Suppliers

Tier 1

SuppliersProducer Distributor Retailer

FinalCustomer

Amount ofinventory=

Figure 14.3

8/3/2019 Unit 31 Criteria 3-1&2

50/52

Supply ChainTerms

Cross-docking

Goods arriving at a warehouse from a supplierare unloaded from the suppliers truck and

loaded onto outbound trucks

Avoids warehouse storage

8/3/2019 Unit 31 Criteria 3-1&2

51/52

Cross-docking

8/3/2019 Unit 31 Criteria 3-1&2

52/52

END OF SESSION

See you next meeting