e commerce and supply chain management scm l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
E-Commerce and Supply Chain Management (SCM) PowerPoint Presentation
Download Presentation
E-Commerce and Supply Chain Management (SCM)

Loading in 2 Seconds...

play fullscreen
1 / 20

E-Commerce and Supply Chain Management (SCM) - PowerPoint PPT Presentation


  • 377 Views
  • Uploaded on

E-Commerce and Supply Chain Management (SCM) Chapter 4 Management 326 Improving an Operations System (Just-in-Time) Operations and Operations Strategy Designing an Operations System Managing an Operations System Inventory Management for Independent Demand

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'E-Commerce and Supply Chain Management (SCM)' - albert


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
management 326
Management 326

Improving

an

Operations

System

(Just-in-Time)

Operations

and

Operations

Strategy

Designing

an

Operations

System

Managing

an

Operations

System

Inventory Management

for Independent Demand

Supply Chain Management

chapter outline
Chapter Outline
  • Supply chains and supply chain management
  • Information sharing in the supply chain
  • Tactics for reducing inventory costs in the supply chain
    • Point-of-sale data & automatic replenishment
    • Vendor-managed inventory
    • Postponement
    • Drop shipping
  • Operations management issues in online sales
why supply chain management is important
Why Supply Chain Managementis Important
  • Supply chain management impacts
    • Costs and inventory investment
    • Customer service
      • Product availability and delivery
    • Product or service quality (through choice of suppliers)
    • Product design
lessons from the dairy products supply chain figure 4 2 page 103
Lessons from theDairy Products Supply Chain Figure 4-2, page 103
  • Companies often have several tiers of suppliers.
    • Your company's Tier 1 suppliers are the firms that your company buys from.
    • A company has more control over Tier 1 suppliers than over Tier 2 & Tier 3 suppliers
supply chains
Supply Chains
  • A supply chain is the network of activities that deliver a product/service to the customer
    • Sourcing (purchasing) of raw materials, parts, goods for sale, or service inventories
    • Order entry
    • Operations planning
    • Transformation process (manufacturing or services)
    • Quality management
    • Logistics:
      • Transportation (traffic)
      • Distribution (delivering the product to customers)
lessons from the jeans supply chain not shown in textbook
Lessons from the Jeans Supply Chain(not shown in textbook)
  • A company's supply chain affects its performance and competitiveness.
    • If a problem arises, a company is likely to blame the Tier 1 supplier. Consumers will blame the retailer or the manufacturer.
  • Information technology is used to coordinate supply chain activities, both within each company and between companies
supply chain management scm
Supply Chain Management (SCM)
  • Supply Chain Management is the business function that coordinates the movement of materials and information through the supply chain
  • Your suppliers should help your firm achieve its competitive objectives
objectives of supply chain management
Objectives of Supply Chain Management
  • Minimize the cost of materials and material movement
  • Minimize inventory investment
  • Ensure timely delivery of materials at every level of the supply chain and to customers (product availability)
  • Ensure quality of materials used in manufacturing or services
  • If needed, get product design help or other services from suppliers.
information sharing in the supply chain figure 4 1 page 102
Information Sharing in the Supply ChainFigure 4.1, page 102
  • The objective of information sharing is to match demand and supply. (What will be available when, and from whom?)
  • Demand: actual sales, sales forecasts, booked orders, custom orders
  • Product availability: current inventory, production plans, shipping schedules, shipments
  • Quality: suppliers' data on quality
tactics for reducing inventory costs 1 point of sale data pos
Tactics for Reducing Inventory Costs (1)Point-of-sale Data (POS)
  • Retailers collects point-of-sale data at the cash register and updates inventory by SKU (stock keeping unit) in real time. SKU's are marked with bar codes or radio frequency ID (RFID) tags. Retailer has options:
    • Use point-of-sale data to forecast future sales and transmit order to manufacturer.
    • Automatic replenishment: retailer transmits point-of-sale data to manufacturers, who determines the retailer's current needs and ships what is needed.
    • Vendor-managed inventory (next slide)
tactics for reducing inventory costs 2 vendor managed inventory vmi in retailing
Tactics for Reducing Inventory Costs (2)Vendor-Managed Inventory (VMI) in Retailing
  • VMI in retailing: The supplier electronically accesses the retailer's database for sales information for the supplier's products.
    • Supplier ships what is needed. (automatic replenishment)
    • Supplier is responsible for updating the customer's database when goods are shipped.
    • Supplier is responsible for anticipating customer's future needs
    • Pioneered by Wal-Mart (Retail Link software)
tactics for reducing inventory costs 3 vendor managed inventory in manufacturing
Tactics for Reducing Inventory Costs (3)Vendor-Managed Inventory in Manufacturing

Supplier Warehouse

  • VMI in manufacturing: supplier maintains a parts inventory at the customer's plant.
  • When the customer needs parts, a supplier employee transfers the parts to the production area.
  • Then the supplier bills the customer for the parts.

Wabco Aircraft

Brake Factory

Parts

Wabco Assembly Line

tactics for reducing inventory costs 4 postponement
Tactics for Reducing Inventory Costs (4)Postponement
  • Produce a generic product. Complete a final product variant when you have an order or can accurately estimate trends.
    • Benetton has suppliers make white sweaters and then dye them just before they are shipped to Benetton stores.
  • Postponement often requires re-designing the product or doing process steps in a different order.
tactics for reducing inventory costs 5 drop shipping
Tactics for Reducing Inventory Costs(5) Drop Shipping

When a customer orders from Company A, some or all of the order may be shipped by Company A's suppliers.

Amazon distribution

center

Order & payment

Customer orders

from Amazon

Frequently ordered items

Ordered

item

Order

Supplier who sells a less frequently ordered item

makes a drop shipment

operations issues in online sales
Operations Issues in Online Sales
  • Inventory management
  • Packing orders for shipment
  • Delivery
  • Customer returns
operations issues in online sales packing orders for shipment
Operations Issues in Online SalesPacking Orders for Shipment
  • Items are identified by bar codes or radio frequency ID (RFID)
  • Warehouse workers put ordered items in crates
  • Sorter sends each item to the correct, bar-coded box for the customer who ordered it
  • Packing slip is printed
  • Boxes are packed, taped, weighed
  • Boxes are put on trucks for shipment to customers
operations issues in online sales delivery
Operations Issues in Online SalesDelivery
  • Objective: Deliver when promised, while minimizing delivery costs
  • Brick-and-mortar stores (like Sears) can ship items to stores for customer pickup.
  • Other online merchants ship via a package delivery service (like UPS) or U.S. postal service
  • Online merchants use package delivery services for most shipments to other countries.
  • Customers usually pay a standard shipping cost – different for U. S. and other countries
operations issues in online sales customer returns
Operations Issues in Online SalesCustomer Returns
  • Objective: minimize the cost of customer returns and reduce "hassles" for customers
    • 25% of Internet orders result in a customer return
    • Problems in returning goods are the 2nd biggest reason that consumers don't buy online
  • Customer usually pays for return shipping
  • Variety of approaches used to return goods: postal service, contract package delivery service, brick-and-mortar store
operations issues in online sales customer returns 2
Operations Issues in Online SalesCustomer Returns (2)
  • Online retailer must ship a replacement item or issue credit to customer
  • Online retailer must process returned items
    • Return defective items to supplier for a credit
    • Good items can often be repackaged, priced, and resold.