Electronic Supply Chain Management

supply chain management

1. E- SUPPLY CHAIN MANAGEMENT Presented by CHARLES.P GUNASEKARAN.M HARI HARA SUDHAN.R MOHAMED ASIK.M PRABHAKARAN.V

2. The flow of material, information, money, and services from raw material suppliers through factories and warehouse to end customer What is Supply Chain Warehouse Factory End Customer Supplier Distribution

3. E-Supply Chain Management Electronic supply chain management is most commonly referred to as e-supply chain management. It combines the concepts of electronic business (e-business) and supply chain management (SCM), and depicts how trade channel members are working together to optimize resources and opportunities

4. Elements of Supply Chain Internal Value Chain, Manufacturing, Inventory Control Distribution, Warehousing, Transportations Supplier Relationship Management, Procurement Management

5. Partner collaboration as strategic asset Information visibility Speed, cost, quality, and customer service Tightly integration Success of Supply Chain

6. Financial Scenario Online Shopping Site SWIFT Network Corporate payment to vendor Bank Bank Corporate Vendor Payments Hub Core System Online payment Transaction Consumer Source: Introducing Microsoft’s Integration Solution: BizTalk Server 2009 Achieving business edge through process agility

7. Electronic Opportunities Advancement software EDI SCM collaboration Demand

8. Benefits of e-SCM Improved Supply Chain Network Minimized Delays Reduced Costs Accuracy of Data

9. Supply Chain Execution Suppliers DC Warehouse Inventory System ERP System Store Inventory System BizTalk RFID Stores Retailer Check DC Warehouse Inventory Send Order (AS2) DC Warehouse Business Decision Makers Messaging EDI BAM Re-stock Orders Orchestration BRE (Filter Tags) RFID Receive Requests for Re-stock Update ERP Receive Shipment Notice Goods Received Update Assign Supplier Process Execution metrics Source: Introducing Microsoft’s Integration Solution: BizTalk Server 2009 Achieving business edge through process agility

10. Supply Chain Activity

11. Supply Chain Infrastructure

12. Operations Issues in Online Sales Inventory management Packing orders for shipment Delivery Customer returns

13. Tactics for Reducing Inventory Costs (5) Drop Shipping When a customer orders from Company A, some or all of the order may be shipped by Company A's suppliers. Customer orders from Amazon Order & payment Amazon distribution center Frequently ordered items Supplier who sells a less frequently ordered item makes a drop shipment Order Ordered item

14. Operations Issues in Online Sales Packing Orders for Shipment Items are identified by bar codes or radio frequency ID (RFID) Warehouse workers put ordered items in crates Sorter sends each item to the correct, bar-coded box for the customer who ordered it Packing slip is printed Boxes are packed, taped, weighed Boxes are put on trucks for shipment to customers

15. Operations Issues in Online Sales Customer Returns Objective: minimize the cost of customer returns and reduce "hassles" for customers 25% of Internet orders result in a customer return Problems in returning goods are the 2 nd biggest reason that consumers don't buy online Customer usually pays for return shipping Variety of approaches used to return goods: postal service, contract package delivery service, brick-and-mortar store

16. Operations Issues in Online Sales Customer Returns (2) Online retailer must ship a replacement item or issue credit to customer Online retailer must process returned items Return defective items to supplier for a credit Good items can often be repackaged, priced, and resold.

17. SAP overview of SCM

18. THANK YOU