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Ecommerce a quality tool for Todays Supply Chain Management

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Supply chain is facilities, functions, activities for producing and delivering ... With Internet, customers and suppliers have a 'window' into a manufacturer's ... – PowerPoint PPT presentation

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Title: Ecommerce a quality tool for Todays Supply Chain Management


1
e
  • E-commerce a quality tool for Todays Supply
    Chain Management
  • Vishalkumar Raj Xiaolan Song

Industrial Systems Engineering Department,
Rutgers University
2
e-commerce
e
  • e-commerce or electronic commerce is, quite
    simply, any method of using electronic
    communications and computer technology to conduct
    business

3
Supply Chain Management
e
  • ? 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

4
Why Internet for business?
e
5
Why e-commerce for Supply chain Management?
e
  • 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

6
e-business Manufacturing
e
7
Why manufacturing is a key for e-business success?
e
  • 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.

8
Problems!!!!
e
  • 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.

9
Steps for smooth Transition to
e-business manufacturing
e
  • Comprehensive Modeling
  • In-Process Intelligence
  • Flexibility to Evolve and Adapt
  • Immediate Communications
  • Enterprise Standard
  • Reliability, Robustness and Scalability

10
Real-Time Manufacturing
e
  • 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.

11
Case Study - e foundry
e
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

12
e- foundry Continue...
e
  • 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.

13
EXTRANET
e
  • 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.

14
The scope of electronic S.C.M.
e
  • 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.

15
Future of Supply Chain Management
e
16
Future Architechture of SCM
e
17
A Flavor of Success!
e
  • 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.

18
Conclusions
e
  • 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.

19
e
  • QUESTIONS????

20
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