E-Supply Chains

Supply Chain
The flow of materials, information, money, and services from raw material suppliers through factories and warehouses to the end customers e-supply chain A supply chain that is managed electronically, usually with Web technologies

E- upply !hains
Supply chain management (SCM) The coordination of many activities so that the shipment of goods and services from supplier to customer is done efficiently and effectively" SCM aims to
#$ minimi%e inventory levels, 2$ optimi%e production and increase throughput &$ decrease manufacturing time, '$ optimi%e logistics and distribution, ($ streamline order fulfillment, and )$ reduce the costs associated with these activities
7-2

E-Supply Chains
*nfrastructure for e- !+
, Electronic -ata *nterchange .E-*$ , E/tranets , *ntranets , !orporate portals , Wor0flow systems and tools1 software to manage the flow of info in organi%ation , 2roupware and other collaborative tools

Simple Value Chain

E-SUPPLY CHAIN
Electronic supply-chain management (e-SCM) is the collaborative use of technology to enhance business-tobusiness processes and improve speed, agility, real-time control, and customer satisfaction. ot about technology change alone, e-SCM is about cultural change and changes in management policies, performance metrics, business processes, and organi!ational structures across the supply chain.

Suppliers
"roduction Materials

Enterprise "rocess #lo$ Enterprise

Manufacturing "rocess &rder-#ulfillment "rocess

Customers
%elivered &rders

#orecast 'e(uirements

"lanning "rocesses

Customer #orecast

'eturns ) 'epairs "urchase 'e(uirements "rocurement "rocess %esign 'e(uirements Customer &rders

%esign 'e(uirements Support "rocesses Settlements

%esign 'e(uirements Settlements

COMPONENTS OF THE E-SUPPLY CHAIN

*.Supply-chain replenishment +.E-procurement ,.Collaborative planning -.Collaborative product development ..E-logistics /.Supply $ebs.

E- upply !hains
e-procurement The use of Web-based technology to support the 0ey procurement processes, including re3uisitioning, sourcing, contracting, ordering, and payment" Eprocurement supports the purchase of both direct and indirect materials and employs several Web-based functions such as online catalogs, contracts, purchase orders, and shipping notices

Collaborative Plannin Collaborative planning re(uires buyers and sellers to develop a single shared forecast of demand and a plan of supply to support this demand, and to update it regularly, based on information shared over the 0nternet. Collaborative planning is a business-tobusiness (1+1) $or2flo$ across multiple enterprises over the 0nternet, $ith data e3changed among them dynamically.

E-Lo isti!s E-logistics is the use of 4eb-based technologies to support the $arehouse and transportation-management processes. Elogistics enables distribution to couple routing optimi!ation $ith inventory trac2ing and tracing information. 0nternet-based freight auctions allo$ spot buying of truc2ing capacity. 5hirdparty logistics providers offer virtual logistics services by integrating and optimi!ing distribution resources.

E! olutions along the upply !hain

Order taking can be done over the *nternet, E-*, E-*4*nternet, or an e/tranet, and may be fully automated Order fulfillment can become instant if the products can be digiti%ed Electronic payments can e/pedite both the order fulfillment cycle and the payment delivery period Managing risk to avoid supply-chain brea0down can be done in several ways
, Inventories can be minimized by introducing a build-to-order .on-demand$ manufacturing process as well as by providing fast and accurate information to suppliers , Collaborative commerce among members of the supply chain can be done