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EC & SCM. AT ETA FABRIQUES D’EBAUCHES SA. Presented By:. Lito Baysa Jim Lindfors Steve Powell. PRESENTATION OUTLINE. Introduction Concepts in Business networking Case Study Implications for designing EC/SCM solutions Conclusion. INTRODUCTION.

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Ec scm

EC & SCM

AT ETA FABRIQUES D’EBAUCHES SA


Presented by
Presented By:

  • Lito Baysa

  • Jim Lindfors

  • Steve Powell


Presentation outline
PRESENTATION OUTLINE

  • Introduction

  • Concepts in Business networking

  • Case Study

  • Implications for designing EC/SCM solutions

  • Conclusion


Introduction
INTRODUCTION

  • Transformation from the old to the ‘new economy’

    • Rise of new intermediaries, deconstruction of value chains, new business rules, and new requirements to meet customer demands in terms of speed, availability, cost and service.

    • Business networking through integrated EC and SCM


Introduction1
INTRODUCTION

  • Integrated EC and SCM approach

    • Combination of EC and SCM

    • Industrial physical goods

    • Existing business networks


Ec and scm in business networking
EC AND SCM IN BUSINESS NETWORKING

  • Concepts of business networking

    • Extends the scope of BPR methodologies

    • Assumes that production occurs not within vertically integrated companies but in networks where different partners concentrate on their core activities

    • Addresses new strategic options, new possibilities for processes as well as technical issues


Ec scm in business networking
EC & SCM IN BUSINESS NETWORKING

  • EC: Building the Links

    • Phases of Transactions

      • Information – identification of vendors and products

      • Contracting – negotiation and decision making

      • Settlement – finalization order entry


Ec scm in business networking1
EC & SCM IN BUSINESS NETWORKING

  • SCM: Building the Chain

    • Four Processes in SCM

      • Plan – demand and supply planning, inventory

      • Source – sourcing and material acquisition

      • Make – production, material request and receipt

      • Delivery – order, warehouse and transportation management.


Ec scm in business networking2
EC & SCM IN BUSINESS NETWORKING

  • Comparison of Concepts

    • Aspects of Complementarity

      • Process: Transaction processes link individual business processes

      • Scope of design: EC takes a transactional perspective whereas SCM takes flow perspective




Eta sa fabriques d ebauches
ETA SA Fabriques d’Ebauches

  • Global producer of watches for Swatch brands

  • Consists of a number of companies that focus on finished movements, component production and R&D

    • Swatch brands produce and distribute finished products

  • World’s Third Largest manufacturer of movements

  • 10,000 employees -- 15 production sites -- 1998 revenue = 1 billion SF



Strategically important problems
STRATEGICALLY IMPORTANT PROBLEMS

  • Redesign of the Introduction Process for New Movements

  • New distribution strategy for movements and spare parts

  • Installation of a new distribution channel for spare parts and movements


Main problems encountered
MAIN PROBLEMS ENCOUNTERED

  • Customers lacked

    • information on interchangeability of parts (Swatch Group)

    • comprehensive technical documentation for assembly, storage, etc of movements and spare parts


Main problems continued
MAIN PROBLEMS (continued)

  • Low level of customer service

    • long cycle times

    • misunderstandings during order processing

    • long delivery times

  • Rudimentary customer information available


Solution
SOLUTION

  • Implement a new distribution channel for spare parts

  • EC/SCM Solution

    • direct order entry

    • new supply chain for direct deliveries to customers


Eta sa ec
ETA SA -- EC

  • C:\Documents and Settings\Jim\My Documents\MAGL\IS695\Presentation -- Fabriques D'ebauches SA\ETA SA Customer Service Main.htm

  • C:\Documents and Settings\Jim\My Documents\MAGL\IS695\Presentation -- Fabriques D'ebauches SA\ETA SA Customer Service.htm

  • C:\Documents and Settings\Jim\My Documents\MAGL\IS695\Presentation -- Fabriques D'ebauches SA\ViewDoc 1.pdf

  • Presentation -- Fabriques D'ebauches SA\EOS ETA Online Shop.htm


Main benefits of ec
MAIN BENEFITS of EC

  • Efficiency of information and contracting services

    • All relevant information on existing and new products on same channel as order entry

      (technical, prices, sales conditions, interchangeability)

  • Improved customer service

    • additional: electronic order payment options, technical document downloads, and electronic order tracking

    • planned: customer profiling, individual customer homepages and communities, FAQ, and auctions for refurbished parts

  • Efficiency of order processing

    • homogenization of master data reduces matching effort, and hence, reduced misunderstandings

    • can handle more volume with more time for personalized customer service


Re engineering the spare parts supply chain
RE-ENGINEERING the SPARE PARTS SUPPLY CHAIN

  • Significant number of transaction direct deliveries

    • Concentration of inventories at ETA SA

    • Elimination of warehouses at brands and retailers

    • Delivery guarantees for customers


Complementary of concepts scm importance
COMPLEMENTARY of CONCEPTS --- SCM IMPORTANCE

  • Supply chain performance – a selling proposition

    • ETA Online higher priorities and delivery guarantees

  • Credit card payment introduced

  • Track shipments and provide accurate shipping cost (3rd party)


Complementarity of ec scm
COMPLEMENTARITY of EC / SCM

  • Process –

    • improved information and contracting, direct customer contact (browse catalog and enter order)

    • EC focus on catalog and order entry channel

    • SCM focus on order processing, delivery and payment (settlement phase). EC provides efficient link between internal supply processes and the customer.


Complementarity of ec scm1
COMPLEMENTARITY of EC / SCM

  • Scope of design

    • New solution for transactions between ETA and customers

    • Catalog makes interface to customers more efficient

    • Transaction process covers entire customer process – marketing to after sales

    • Supply chain activities include

      Order flow from online shop to ERP, physical goods delivery, financial goods from customer


Implications for designing ec scm solutions
IMPLICATIONS for DESIGNING EC/SCM SOLUTIONS

  • Apply principles of Business Process Re-engineering.

  • Master Data Management

  • Communicate Win-Win Situation.


Implications for designing ec scm solutions1
IMPLICATIONS for DESIGNING EC/SCM SOLUTIONS

  • Apply principles of Business Process Re-engineering.

    • Structure (Illustrate) the Organizational, Functional, and Data Dimensions.

      • Strategy Level – Win-win, ROI

      • Process Level – creation of functional efficiency.

      • Systems Level – applications reliability


Implications for designing ec scm solutions2
IMPLICATIONS for DESIGNING EC/SCM SOLUTIONS

  • Master Data Management as, “Hidden Success Factor”

    • Identify applicable standards for handling orders via customer counter.

    • Control of interchangeable information, pricing information, and parts description integrity.

    • Although EC/SCM does not explicitly require it, ETA calls standardization it’s “Hidden Success Factor”


Implications for designing ec scm solutions3
IMPLICATIONS for DESIGNING EC/SCM SOLUTIONS

  • Communication of Win-Win Situation – ROI.

    • Set-up costs.

    • Running costs.

    • Benefits.


Conclusion and next steps
CONCLUSION AND NEXT STEPS

  • Integration of EC and SCM is changing the way businesses work internally and with each other.

  • The future will prove whether B2B relationships will remain committed.

  • Potential to extend EC/SCM strategy to broader line of products.


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