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Virtual Supply Chain

Virtual Supply Chain. By: Andy Armstrong Lindsey Armstrong Todd Brown Denny Burnett Paul Carbajal. Virtual Supply Chain. Virtual Supply Chain-

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Virtual Supply Chain

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  1. Virtual Supply Chain By: Andy Armstrong Lindsey Armstrong Todd Brown Denny Burnett Paul Carbajal

  2. Virtual Supply Chain Virtual Supply Chain- A Virtual Supply Chain represents a network of firms coming together to exploit fast-changing opportunities. By quickly combining their core competencies the alliance of firms is able to take advantage of a market opportunity. VSC Depend On- Developed Information Infrastructure Continually Improving Technology Length of VSC Alliance Depends On- Availability of the market opportunity Future business objectives of the firms involved

  3. Example of VSC Online Ordering Production Planning Production Plan Supplier ASupplier BSupplier C Operational Ordering Operational Ordering Operational Ordering Strategic Planning Strategic Planning Strategic Planning Long-term Competitiveness Long-term Competitiveness Long-term Competitiveness

  4. Four Phases • Four phases along the value-adding process: • Plan: Data is processed for product development and management • Source: Volume forecasts determine resources required • Make: Raw materials Final products • Deliver: Logistics

  5. Potential of VSC’s • Continually improving technology • Technology improves capabilities of VSC’s improve • Innovation in supply chain • Flexible supply chain

  6. Lending Tree “When Banks Compete, You Win” Service that provides people with different mortgage companies to choose from. They don’t actually provide the lending service.

  7. 4PL’s • A 4PL is an integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design, build and run comprehensive supply chain solutions • Aimed to save the customers of the supply chain money • Mostly a consulting company

  8. In two words it: Recycles Technotrash • Provides secured, audited disposal of intellectual property stored on electronic media and other technotrash. • Through a set of strategic alliances, GreenDisk works with both for profit and non-profit companies to create a national network of service providers. Rather than build new manufacturing facilities and recycling centers, GreenDisk partners with these non-profit agencies. • GreenDisk profits from the sale of its products.

  9. GreenDisk • Also, GreenDisk buys downtime from professional software manufacturers. • Instead of setting up new manufacturing and fulfillment centers, GreenDisk partners with such non-profit agencies as ACT! in Columbia, Missouri, which focuses on creating jobs for developmentally disabled adults or with the Veterans' Administration which re-trains and employs disabled veterans.

  10. Examples of what it recycles • Diskettes, CDs, DVDs, Video and Audio Tapes, Ink Jet and Toner Cartridges • Cell Phones, PDAs, Pagers, Digital Cameras, and Laptop • Computers • Hand-held Games, CD and MP3 Players, Rechargeable Batteries and other Computer-related Equipment

  11. GreenDisk Process • GreenDisk Technotrash • Companies send the technotrash can via the US Postal Service to a collection facility • From there the technotrash is sorted and sent to a network of companies and nonprofit groups that breakdown the material for reuse

  12. GreenDisk Process (cont.) • Throughout the process it tracks the activity of the materials with a bar code, so it can provide customers with documentation of its services. • After the material have been destroyed, GreenDisk sends a letter conforming the materials have been destroyed (sensitive information has been removed). • The end result for most technotrash is GreenDisk products, such as recycled CD RW’s.

  13. Technotrash Can

  14. Strategy used by “LINE” (logistics Information Network Enterprise) • Leveraging technology to improve the value chain. • Using the internet as primary source of communication and manage real time information with electronic documentation to deliver goods in the most efficient manner. • Developing a JIT process to deliver inputs at the right time place and quantity reducing inventory, material handling and overhead. • Monitoring truckloads, routes and warehousing • Enhancing payment process electronically increasing speed, assurance, status of goods, over purchasing abilities and extra foreign exchange services.

  15. LINE’S VSC Management • Integration of Service Providers, Logistic Services and Trading Partners into a single platform • Information design constructed of logistic services, partnerships and transportation management systems • 5 areas of focus • Source, Make, Store, Move, Pay

  16. Why VSCM is important to a manager • Understanding virtual supply chains enhances understand of supply chains in general • Gaining control of a virtual supply chain is harder than a constant supply chain, increases your overall SCM abilities • There are multiple businesses using VSC and knowing how to improve and manage them properly will help the business as well as your career

  17. Difference between managing a VSC vs. a normal SC • Constant stream of different suppliers • VSC relies more heavily on communication technology • Faster pace in grouping suppliers together to create a final product

  18. Sources • Gunasekaran, A. and Ngai, E. W. T. “Virtual Supply-Chain Management.” Production Planning & Control. Vol. 15, No. 6, September 2004, 584-595. • LendingTree.com • GreenDisk.com • Supplychain.ittoolbox.com “What is 4PL?” • Harrisson,Crayton. "Recycling trash through the mail." The Dallas Morning News.4/8/2006 (" http://seattletimes.nwsource.com/html/businesstechnology/2002918311_ptreviews08.html")

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