Ecommerce a quality tool for Todays Supply Chain Management

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• E-commerce a quality tool for Todays Supply
  Chain Management
• Vishalkumar Raj Xiaolan Song

Industrial Systems Engineering Department,
Rutgers University
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e-commerce
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• e-commerce or electronic commerce is, quite
  simply, any method of using electronic
  communications and computer technology to conduct
  business

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Supply Chain Management
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• ? Supply chain is facilities, functions,
  activities for producing and delivering product
  or service from supplier to customer.
• ? Supply chain management is comprised of
• Integrating
• Planning
• Designing
• Acquiring
• Delivery of product

• Producing
• Warehousing
• Distributing

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Why Internet for business?
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Why e-commerce for Supply chain Management?
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• e-commerce systems still in their conceptual
  stage will focus on knowledge management to allow
  organizations to work collaboratively and share
  information thus creating virtual corporations
• e-commerce will become as much a part of
  conducting business as the telephone, fax and PC
  are today

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e-business Manufacturing
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Why manufacturing is a key for e-business success?
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• Manufacturing is where value is added, and key
  supply chain partners demand not only excellent
  performance, but also visibility into how the
  value-adding process is proceeding.
• Order promises must be made based on the
  minute-to-minute reality of operations, not just
  the planned schedule.
• New products must ramp up faster to leverage full
  profits within shorter product lifecycles.
• Huge IT investments is being made in financials,
  human resources, planning, distribution and
  logistics systems. Yet the plant floor often
  presents a significant gap in the Enterprise IT
  architecture.

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Problems!!!!
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• Hodge-Podge- Many manufacturing plants have many
  disparate systems, each with different data
  formats and architectures, and often not well
  documented.
• Islands of Information Older plant systems were
  not designed for information sharing. Systems are
  rarely integrated with each otheroperating as
  separate islands of information and do not
  provide a complete view of what is happening in
  production.
• Customized- In most companies, each plant has
  highly customized systems have proved difficult
  to integrate and inflexible to modify as business
  processes change.

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Steps for smooth Transition to
e-business manufacturing
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• Comprehensive Modeling
• In-Process Intelligence
• Flexibility to Evolve and Adapt
• Immediate Communications
• Enterprise Standard
• Reliability, Robustness and Scalability

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Real-Time Manufacturing
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• Which questions real-time knowledge can answer?
• What is the status of the equipment?
• What is availability of manufacturing lines?
• What is current inventory?
• With Internet, customers and suppliers have a
  "window" into a manufacturers operations and,
  in some cases, can interact directly with their
  manufacturers systems.

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Case Study - e foundry
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Taiwan Semi-conductor Manufacturing Co. (TSMC)

• TSMC posted annual sales of 2.3 billion (US) in
  1999.
• eFoundry is a word created by TSMC to
  symbolically indicate their full functioning
  electronic supply chain management.
• eFoundry contains four different subsystems.
• TSMC-online
• TSMC-YES
• TSMC-Direct
• TSMC-Internet Layout Viewer

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e- foundry Continue...
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• INFORMATION AVAILABLE ON-LINE
• Foundry design documents
• CAD design guides
• Wafer production ordering
• WIP, shipping notice/invoice
• Shipping reports, backlog reports
• Test results, WAT data, wafer sort data, QA data
• Process monitoring data.
• Assembly/Test subcontractor quality monitoring
  data.

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EXTRANET
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• Extranets are private Web communities. They
  enable companies to use Internet-based
  technologies to communicate and transact business
  securely with distributors, customers, and other
  business partners.
• Electronic Data Interchange was not to handle
  interactive and collaborative business processes,
  which initiated need of Extranets.

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The scope of electronic S.C.M.
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• B2B Business to business systems is designed
  for businesses
• to collaborate or sell goods
  and services to each other.
• B2C Business to consumer e-commerce. These
  systems are
• essentially electronic shop
  fronts to allow businesses to
• sell goods and services to
  consumers via the Internet.
• G2B Systems involve the government providing
  services to
• G2C business and consumers. These
  services may range
• from the on-line provision of
  information through to
• electronic lodgment of forms
  or tax returns.

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Future of Supply Chain Management
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Future Architechture of SCM
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A Flavor of Success!
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• Federal Express saves 20 million annually by
  providing package tracking information and
  shipping management via the Web.
• Cisco Systems, a leading example of how a company
  can leverage the power of a networked supply
  chain, saves 695 million annually.
• 823 billion will flow through V-SCI networks by
  2004, up from a mere 43.4 million by the end of
  this year.

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Conclusions
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• SCM will become an effective way to carry out
  manufacturing and business.
• It will become imperative for the companies to
  adopt e-commerce based SCM to compete better.
• Higher Customer satisfaction will be achieved
  using e-commerce based SCM.
• It is a good field from Industrial Engineering
  perspective.

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• QUESTIONS????

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