Chapter 13: Order Fulfillment, Logistics, Supply Chain Management ppsx

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Chapter 13: Order Fulfillment, Logistics, Supply Chain Management ppsx

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1 Chapter 13 Order Fulfillment, Logistics, Supply Chain Management 2 Learning Objectives 1. Understand the role of order fulfillment and back-office operations in EC 2. Describe the process of order fulfillment 3. Understand the concept of the supply chain, its importance and management 4. Describe the problems of managing the supply chain and the use of innovative solutions there 5. Describe the need for integrating information systems of front office and back office 6. Trace the evolution of software that support activities along the supply chain and their management 7. Understand the relationship among ERP, SCM and EC. 3 The Y2K Order Fulfillment Problem  In Dec. 1999 Competition among E-Tailers increases  Special area: Toys; Big promotions, coupons  Demand: very high, not anticipated  Retailers: were unable to meet demand  Customers: very unhappy  Similar problems in gifts, book, etc.  Also: online retailers has warehousing and logistics problems 4 Order Fulfillment  Taking orders may be the easiest part  Difficulties in groceries and fresh food  One reason: Customized products  Second: Pull type manufacturing 5 The Pull vs. Push Model 6 Major Concepts  Order fulfillment: Deliver right order on time  Front office operations: Order taking, advertisement, CRM  Back office operations: Accounting, finance, inventor, packaging, logistics  Logistics: Managing the flow of goods, information and money along the supply chain 7 The Process of Order Fulfillment 8 The Steps of Order Fulfillment 1. Payment Clearance 2. In-stock availability 3. Packaging, shipment 4. Insuring 5. Production (planning, execution) 6. Plant services 7. Purchasing, warehousing 8. Demand forecast 9. Accounting, billing 10. Customer contacts 11. Returns (Reverse logistics) 9 Shipping a Tropical Fish 1. Placing order, payment 2. Transfer order to petstore.com, check stock 3. Use an wholesaler to get the fish 4. Supplier finds fish, ships to wholesalers 5. Wholesalers rushes to Petstore 6. Petstore uses FedEx to ship to customer with copy of credit card payment Discussion: What is the contribution of EC? 10 Why Intermediaries? 1. Wholesaler and deliveries in the Petstore case 2. Wholesalers as an aggregators; between many sellers and buyers 3. Can a virtual store replace a retailer? 4. Direct sales for large items 5. Example: The Lego Co. case [...]... Internal supply chain - Inventory management - Purchasing and order activities management - Budgeting, cost control - Human resources information Downstream Saleperson productivity tools, activities online telemarketing, ad 34 Management etc Integration-Benefits Automation of segments useful, but… Tangible benefits Inventory reduction, personnel reduction, productivity improvement, order management. .. Components of the Supply Chain 13 Components-Description Upstream: Suppliers, their suppliers Upstream (several tiers) From Raw material to the company Internal: All internal process that add Internal value, conversion to find products Downstream: All activities in distribution Downstream and delivery to end customers 14 Complex-nonlinear Supply Chain 15 Benefits of SCM Reduce uncertainty along the chain Proper... inventory levels in the chain Minimize delays Eliminate rush (unplanned) activities Provide superb customer service Major contributor of success (ever survival) 16 Global Supply Chain Can be very long Possible cross-broader problems Need information technology support of: communication and collaboration Possible delays due to: customs, tax, translations, politics 17 Problems along the Supply Chain Delays in... for order placing Can pay in cash/card to the store Returns are a problem: up to 30% 32 The role of FedEx & Similar Shippers From a delivery to all-logistics Many services (see Box 13.4) Complete inventory control Packaging, warehousing, reordering etc Tracking services to customers 33 Software Support SCM activities Upstream activities Type of software Suppliers’ management, ordering systems, order. .. impact order fulfillment and returns What if a manufacturer sells both wholesale and retail? (Microsoft) Customized product by manufacturers: ideal 11 for direct sale Supply Chain Management Definition: Flow of material, information, money, etc from raw material suppliers through factories to customers It includes: organizations, procedures, people SCM: Integration of the business processes along the chain, ... Poor quality 18 More difficulties Virtual companies do not have logistics infrastructures One company is a member of several supply chain Conventional warehouses are too expensive Need automatic warehouses with robots as pickers 19 Preliminary Activities Understand the supply chain (flow charts) Study internal and external parts Performance measurement are a must (Benchmarking) Multidimension performance... cost The manufacturers can not plan production Cannot order material from suppliers 27 Avoiding the sting of the bullwhip Information sharing is a must Trust and agreements How to do it? $30 billion/year just in the grocery industry 28 IT solutions Automate order taking Use EDI/Internet Web based ordering; intelligent agents Electronic payments Make-to -order (JIT) Tracking systems Supplier monitor and... communication/collaboration Links the partners Provide effective and efficient solutions Extremely important Need for information sharing 25 IT as problem solver Supply Chain Problem IT solution Linear sequence of processing – too slow Waiting times between chain segments – excessive Parallel processing, using workflow s/w Existence of non-valued added activities Slow delivery of paper documents Repeat process... In-plant material handling Vendor management program Customer order processing 21 Areas of Opportunities (cont’d) Invoicing, auditing and other accounting activities Collaboration procedures with partners Employee training and deployments Labor scheduling Use of teams and empowerment of employees Automation of processes Use of software for facilitating all the above Inventory management and control22 Using... company with many suppliers (catalogs, auctions) One company with many buyers (RFQ) Exchanges controlled by few large companies (e.g ANX) 3rd party managed exchanges Vertical vs Horizontal portals 30 Non -supply Chain Partnerships Starbucks: Coffee to retailers, customers Needed fast service; less expensive Kozmo delivers in cities 30-60 minutes Kozmo.com: Had a problem with drop boxes for returns Partnership: . 1 Chapter 13 Order Fulfillment, Logistics, Supply Chain Management 2 Learning Objectives 1. Understand the role of order fulfillment and back-office operations. Describe the process of order fulfillment 3. Understand the concept of the supply chain, its importance and management 4. Describe the problems of managing the supply chain and the use of innovative. of software that support activities along the supply chain and their management 7. Understand the relationship among ERP, SCM and EC. 3 The Y2K Order Fulfillment Problem  In Dec. 1999 Competition

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Mục lục

  • Chapter 13

  • Learning Objectives

  • The Y2K Order Fulfillment Problem

  • Order Fulfillment

  • The Pull vs. Push Model

  • Major Concepts

  • The Process of Order Fulfillment

  • The Steps of Order Fulfillment

  • Shipping a Tropical Fish

  • Why Intermediaries?

  • Channel Conflict

  • Supply Chain Management

  • Components of the Supply Chain

  • Components-Description

  • Complex-nonlinear Supply Chain

  • Benefits of SCM

  • Global Supply Chain

  • Problems along the Supply Chain

  • More difficulties

  • Preliminary Activities

  • Areas of Opportunities

  • Areas of Opportunities (cont’d)

  • Using Inventories

  • Proper SCN

  • Information Technology for SCM

  • IT as problem solver

  • The bullwhip effect

  • Avoiding the sting of the bullwhip

  • IT solutions

  • Electronic trading markets/exchanges

  • Non-supply Chain Partnerships

  • The Role of 7-Eleven & Convenience Stores

  • The role of FedEx & Similar Shippers

  • Software Support

  • Integration-Benefits

  • Integration along the Supply Chain

  • Areas of Integration

  • Evolution of Software Integration

  • From SAP to mySAP.com

  • Enterprise Resource Planning (ERP)

  • Developing ERP Systems

  • Post ERP (2nd Generation)

  • ASP

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