1、18-1,Chapter 18 E-Business and the Supply Chain,Supply Chain Management (2nd Edition),18-2,Outline,The Role of E-Business in a Supply Chain The E-Business Framework The B2B Addition to the E-Business Framework E-Business in Practice,18-3,Role of E-Business in a Supply Chain,E-business: Execution of
2、business transactions over the Internet B2C: Business to consumer B2B: Business to business,18-4,E-Business Transactions,Providing information across the supply chain Negotiating prices and contracts Allowing customers to place orders Allowing customers to track orders Filling and delivering orders
3、to customers Receiving payment from customers Placing orders with suppliers Paying suppliers These transactions were previously done through other channels,18-5,The Impact of E-Business on Supply Chain Performance,Impact of E-Business on Responsiveness (which primarily affects a companys ability to
4、grow and protect revenue) Impact of E-Business on Efficiency (which primarily affects a companys costs),18-6,Impact of E-Business on Responsiveness,Offering direct sales to consumers 24-hour access from any location Wider product portfolio and information aggregation Personalization/customization Fa
5、ster time to market Flexible pricing, product portfolio, and promotions Price and service discrimination Efficient funds transfer Lower stockout levels Convenience/automated processes Potential revenue disadvantage of e-business (for customers who require a short response time),18-7,Impact of E-Busi
6、ness on Cost,Inventory Facilities Transportation Information,18-8,The B2C E-Business Scorecard (Table 18.1),+ Very positive; + Positive; = Neutral; - Negative; - Very negative,18-9,Applying the E-Business Framework,PC Industry Book Industry Grocery Industry MRO Supplies Industry,18-10,Revenue Impact
7、 of E-Business on the PC Industry (Dell),Sells PCs directly to customers and starts assembly after receiving a customer order Revenue disadvantage for customers who do not want to wait or who need a lot of help setting up a computer Revenue advantages: Offer virtually unlimited different PC configur
8、ations Bring new products to market faster Fast at providing customized PCs Price flexibility Direct selling eliminates distributor and retailer margins Negative working capital,18-11,Cost Impact of E-Business on the PC Industry,Inventory costs geographic aggregation, postponement, dampening of bull
9、whip effect Facility costs no physical distribution or retail outlets; customer participation Transportation costs higher outbound transportation costs (PCs are shipped individually) E-Business impact for Dell (Table 18.2) Significantly improved performance Exploited every advantage provided by the
10、Internet,18-12,The Impact of E-Business on Dell Performance (Table 18.2),+ Very positive; + Positive; = Neutral; - Negative; - Very negative,Impact,Area,Impact,Area,18-13,Value of E-Business for a Traditional PC Manufacturer,Potential value for traditional PC firm Use e-business to sell customized P
11、Cs that are hard to forecast Sell standard configurations through traditional channels Introduce new models on the Internet Allows lower inventory,18-14,Revenue Impact of E-Business on the Book Industry (Amazon),Negative: An additional stage in the supply chain the distributor (this is more of a cos
12、t impact) Downward price pressure Does not attract customer who has a short response time requirement or prefers to examine a book before purchase Positive: Offers millions of books Uses Internet to recommend books Provides reviews and comments from other customers Quickly introduces new titles Allo
13、ws shopping 24 hours, 7 days/week,18-15,Cost Impact of E-Business on the Book Industry,Inventory costs geographic aggregation of high-volume books; purchases low-volume books from distributor after customer order Facility costs no retail outlets, but higher order-processing costs Transportation cost
14、s very high E-business impact at Amazon (Table 18.3) Mixed, few profits as yet There are not as many advantages to selling books on the Internet compared to selling PCs,18-16,Impact of E-Business on A (Table 18.3),+ Very positive; + Positive; = Neutral; - Negative; - Very negative,Impact,Area,Impact
15、,Area,18-17,Value of E-Business for a Traditional Bookstore Chain,Can benefit from setting up complementary e-business Carry high-volume books in stores, sell low-volume books online to take advantage of aggregation Provide access to online business in stores Can possibly use technology to print a b
16、ook on demand Can deliver books sold online to stores and allow customers to pick them up there,18-18,Revenue Impact of E-Business on the Grocery Industry (Peapod),Online grocer Selling convenience, especially in urban areas Specialty food stores also sell convenience Peapod provides a customized sh
17、opping experience based on customer preferences, which a supermarket cannot do Provides opportunities for targeted advertising; selling information about customers,18-19,Cost Impact of E-Business on the Grocery Industry,Inventory costs: lower inventories, but aggregation is limited because of the ne
18、ed for local fulfillment centers and the fact that most groceries are staples with steady demand Facility costs: no retail outlets, but higher order processing costs Transportation costs: higher transportation costs inbound and outbound transportation costs groceries have a relatively low value-to-w
19、eight ratio E-business impact at Peapod (Table 18.4) some revenue advantages but higher costs less cost advantage for groceries than for books or PCs,18-20,Impact of E-Business on Peapod (Table 18.4),+ Very positive; + Positive; = Neutral; - Negative; - Very negative,18-21,Value of E-Business for a
20、Traditional Grocery Chain,E-business could be a beneficial complement to a traditional grocer E-business used to offer convenience to customers who are willing to pay for it Can offer a wide range of services at differing prices based on the amount of work done by the customer Albertsons is an examp
21、le of this approach,18-22,Using E-Business to Sell MRO Supplies: G,Grainger is a distributor of maintenance, repair, and operating supplies Traditional part of the business is through catalog or in-person orders Also sells online: G FindMRO.com OrderZ,18-23,Revenue Impact of E-Business for Grainger,
22、Prices for MRO supplies will drop because of the Internet But revenue enhancement for Grainger Customer can access all 220,000 items (limited to 80,000 in catalog) Searching for items is simpler on the Internet FindMRO and OrderZone allow the offering of a larger variety of products A new product ca
23、n be offered for sale as soon as it is introduced Customers can place and check on orders anytime,18-24,Cost Impact of E-Business on Grainger (MRO supplies),Inventory costs slightly lower through aggregation and lower lead times Facility costs lower order processing costs, some branches may be close
24、d Transportation costs no change likely E-business impact at Grainger (Table 18.5) Marginal improvement in revenue Decrease in order processing cost Benefits to customers,18-25,Impact of E-Business on Grainger (Table 18.5),+ Very positive; + Positive; = Neutral; - Negative; - Very negative,-,Informa
25、tion,=,Price discrimination,=,Transportation,+,Flexible pricing,+,Facilities,+,Time to market,=,Inventory,+,Personalization,+,Convenience,+,Product portfolio,=,Lower stockouts,+,24-hour access,=,Efficient funds transfer,=,Direct sales,Impact,Area,Impact,Area,18-26,The B2B Addition to the E-Business
26、Framework,The wide variety of factors potentially important in B2C transactions can be reduced to three principal categories: Reduced transaction costs Improved market efficiencies Supply chain benefits,18-27,Transaction Costs: When E-Business Will Have a Positive Impact,Transactions are frequent an
27、d small in size Phone and fax are the current method of transmitting orders A lot of effort is spent reconciling product and financial flows,18-28,Improved Market Efficiencies: When E-Business Will Have a Positive Impact,Limited buyer/seller qualification is required A fragmented market exists with
28、many competing players either on the buy or sell side A large number of buyers/sellers can be attracted to the online site,18-29,Supply Chain Benefits: When E-Business Will Have a Positive Impact,The bullwhip effect is quite significant due to information distortion in the supply chain The supply ch
29、ain as a whole achieves low inventory turns and poor product availability Each stage has little visibility into either the customer or supplier stage There is little collaboration in the supply chain in terms of promotions and new product introduction Product life cycles are short,18-30,Application
30、of the B2B E-Business Framework,Figure 18.4: The E-Business Value Proposition Figure 18.5: A Decision Tree Representation of the B2B Addition to the E-Business Framework,18-31,B2B E-Business Value Proposition (Figure 18.4),Reduced Transaction Charges,Market Efficiencies,Supply Chain Benefits,Ease of
31、 Implementation,Easy,Hard,Value Created,Low,High,18-32,E-Business in Practice,Integrate the Internet with the existing physical network Devise shipment pricing strategies that reflect costs Optimize e-business logistics to handle packages, not pallets Design the e-business supply chain to handle ret
32、urns efficiently Keep customers informed throughout the order fulfillment cycle,18-33,Summary of Learning Objectives,What is the role of e-business in the supply chain? What are the effects of e-business on supply chain performance? How can the e-business framework be used to evaluate whether a company is a good candidate for e-business and where the company should target its e-business efforts?,
