eCommerce Supports SME Supply Chain Activities in Wales

1
e-Commerce Supports SME Supply Chain Activities
in Wales

• Mike OShea
• Clemdale Associates
• February 2003

2
Main Activities of WDA Regional SME Programme

• To provide an Independent Source of information
  on e-Commerce related subjects.
• To provide businesses with Development and
  Implementation Support and Expertise
• To promote an active e-Commerce Business
  Community in Wales.

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e-Commerce

• A convergence of different methods of business
  communication into a single concept
• Use linked to the re-engineering of business
  processes
• Driven by business to control costs, enhance
  efficiency gain competitive advantage

4
The Changing Business Environment

• New market conditions
• Specialisation
• Subcontracting
• Global Sourcing
• Technological developments in the areas of
  production, transportation and communications
• More elaborate capabilities of people to exploit
  the possibilities

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Global Sourcing Trends

• Increase in supplier/purchaser relationships
  mediated by computer networks - little face to
  face interaction and low costs
• Increase in strategic alliances and partnerships
  through use of Electronic Communications leads
  to
• long term and more co-operative relationships
• expanded use of electronic commerce and EDI
• early involvement by suppliers in new product
  development
• a dramatic reduction in the supplier base
• agreements on a schedule of price reductions by
  suppliers
• Achievement of best price, quality, delivery and
  flexibility

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e-Commerce improves Business Performance

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Implementing e-Commerce

• Building the business case
• customer / supplier analysis
• business analysis and cost justification - not
  just paper procedures but strategic improvements
• evaluation of technology and systems options
• Secure commitment - internally externally

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Implementing e-Commerce

• Develop an Implementation Strategy
• agree objectives that support business needs
• identify individual and joint responsibilities
• spell out timescales and milestones
• Review business processes
• understand the process flows
• document methods of operation
• identify process improvements

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Implementing e-Commerce

• Agree an approach following evaluation of -
• the process
• the information
• the data elements required
• Choose an ICT Infrastructure and Software
• Pilot, Test, Go Live
• Review Project and Development Strategy

10
Projects Undertaken

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Business Relationships

12
Applications Developed

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Business Advantages for SMEs

14
Main Benefits Reported

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Main Inhibitors

• Cultural Resistance - changing
• Lack of management awareness - improving
• Reluctance to invest business not technology
• Weak commercial incentive understanding business
  opportunity and benefits
• Systems development - complexities
• Bureaucracy - Public Sector improving
• Security secure trading issues

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e-Commerce Supports SME Supply Chain Activities
in Wales

• Summary
• Utilising e-Commerce in the supply chain is a
  business not a technology issue

17
e-Commerce Supports SME Supply Chain Activities
in Wales

• Mike OShea
• Clemdale Associates
• February 2003

18
Case Study e-Commerce in Supply Chain Management

• Mike OShea
• Clemdale Associates
• February 2003

19
CPM Gifts LimitedE-Commerce Project

• Case Study
• www.cpm-gifts.com

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Company Overview

• The company was formed in 1985 in Cardiff and
  currently employs 55 people
• CPM produce an extensive range of personalised
  products
• Ceramics and glassware decoration
• Textile print automatic and manual
• Computerised design studio
• Warehouse in Cardiff

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Key Customers

• Clinton Cards
• BHS
• Tesco
• Duty Free Operators Worldwide
• London Souvenirs
• WRU (Welsh Rugby Union)

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Project Objectives

• Three Primary Objectives
• To provide a solution for an on-line supply chain
  system utilising the web
• To complete a detailed business analysis for
  integrating the website with both production and
  commercial systems
• To implement online marketing supports to enable
  a one-stop shopping experience.

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The Challenges

• To present the entire product range online to
  best advantage to maximise sales and revenue
  potential
• To integrate the customer ordering process with
  internal systems
• To manage supply chain activities more cost
  effectively
• To introduce new product ranges facilitated by an
  e-Commerce environment.

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Guiding Principles

• Ensure that all potential customers have
  information which is relevant to them
• Customise the sytem for each profile of customer
• Provide several ways of accessing product data as
  quickly and easily as possible
• Provide marketing ideas as to how the product
  range may be used and extended.

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Types of Content

• Souvenirs
• Named gifts
• Gifts for all seasons
• Name droppers
• Memorabilia

10 main types of content presented

• CPM Home Page and corporate identity
• Textiles
• Ceramics
• Glassware
• Gifts

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Systems Overview Features

• Systems development based on
• Visitors to the CPM website will be able to order
  any of the CPM range online
• Range of products will include the
  personalisation of Named Mugs
• The visitor will be able to select a mug from the
  stock range and add it to their shopping cart
• They will specify the name they want on the mug
• Once they have finished shopping they will go to
  the checkout and complete their order

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Systems Overview Features

• Completed orders are collected by CPM on a
  regular basis throughout the day
• Any orders for Personalised Named Mugs are
  automatically identified and stored in a local
  database
• These orders are held in a queue until there are
  sufficient orders to meet the production criteria
• The Art department is automatically notified that
  a batch of orders is ready and can be released

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Systems Overview Features

• Releasing the orders automatically populates the
  the appropriate template with the text for the
  mugs required.
• Internal paperwork is raised and the orders
  proceed through the Named Mug production process.
• At the end of the production process the system
  automatically generates the paperwork required to
  complete the order and despatch it to the
  customer.

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Business Benefits

• Strategic, marketing and overall business
  objectives met
• New line of business implemented for personalised
  products
• Integration of online ordering and production
  achieved for Named Mugs
• Key personnel up-skilled to operate and
  administer new systems
• e-culture introduced throughout CPM
• Key customers retained and business relationships
  improved.

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Supply Chain Performance Improvements

• Increased business turnover and better cash flow
  facilitated by on-line payments
• More orders and broader client base
• e-Commerce has enabled immediate communication
  with organisations and in particular with
  international markets
• New business ventures and channels to market
  established
• Worldwide access to supply chain and competitors
• Niche market for personalised products
  established and growing.

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Supply Chain Performance Improvements

• Increased market transparency through use of
  electronic catalogue
• Business activities and structures re-engineered
  to provide a more competitive partnership
  position
• Closer and more efficient co-operation in
  production and scheduling activities
• Long term strategic benefits through locking in
  main customers via e-Commerce.

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e-Commerce Supports SME Supply Chain Activities
in Wales

• Mike OShea
• Clemdale Associates
• February 2003