eSupply-Chain

1. eSupply-Chain Supply Chains in the 21st Century September 20, 1999 Pittiglio Rabin Todd & McGrath

2. Demand chains in ‘units of one’ begin in the office and in the home…... Photo ; Fortune

3. From your paperless office….. • Your computer crashes requiring you to order a spare • www.computerspares.com • www.technomatic.com • Your require an additional computer • www.dell.com • Software problem ? • www.microsoft.com • Office supplies ? • www.staples.com

4. From your home …in the study • You need to research a subject and can’t get to a bookshop (probably Sunday evening again…..) • Many trade journals now available online • www.businessweek.com, www.cnnfn.com, mitsloan.mit.edu, www.hbsp.harvard.edu • Search by author, title and subject - and order now • www.amazon.com, www.barnesandnoble.com • Personal financial management • Personal finance investment - www.legalandgeneral.com • Mortgages - www.nationwide.com • Insurance Car and Home - www.admiral.com

5. From your home ….at the kitchen table • Go Shopping? • www.tesco.co.uk • Travel? • Research www.blakes.co.uk,lastminute.com • Book www.hotelworld.com, www.british airways.com • Want to buy a gift at short notice? • www.tiffanys.com, www.hamleys.com • Something for the weekend? • Tickets to sporting events - www.rwc99.com • Tickets to the theatre (in any city) - www.albemarle-london.com

6. EBusiness will change the 21st Century Supply Chain • You may question when? • You may question how much change? • You may question how? • The longer you question, the greater your risk • ( ps. the 21st Century starts in 102 days from now ! ) • consider…………………..

7. eBusiness Threat or Opportunity, Strength or Weakness Opportunity Growth 20th Century Business Threat Cannibalisation 21st Century Business eBusiness Opportunity

8. “It’s not about technology. It’s about how to do business” Frank Burkitt PRTM Director One-third of companies expect the E Business channel to account for 20% or more of their revenue by 2000 42% expect to communicate with the majority of their customers via this channel by 2000 97% expect to offer customersupport through their web site by 2000 Results of the 1999 E Business Survey by PRTM and Sales & Marketing Management

9. eBusiness makes the concept of extended enterprise a reality Suppliers Customers Channel partners Manufacturers

10. Customers / Distributors PLAN SOURCE DELIVER Supply Chain of the business Supplier Supply Chain PLAN PLAN SOURCE. MAKE DELIVER SOURCE MAKE DELIVER Business- to-Consumer eSupply-Chain enables communication within and between Supply Chains Business- to-Business Business- to-Business

11. ePlan • More effectively implement an extended enterprise • Suppliers, manufacturers and retailers centrally co-ordinate their planning with the customer, resulting in shorter planning cycles • Reduce order management costs • Incorporate changes in the commercial environment more frequently into the planning process • Improve profit margins by rapid realignment to demand fluctuations based on eForecasting • Increase communication at reduced costs between all partners of the supply chain via a central co-ordination system • Improve documentation of ideas and development of prospective products

12. ePlan example • Wal-Mart drastically reduced inventory days and restocking cycle-time Average 6 weeks Less than 36 hours

13. eSource • A more competitive marketplace • Suppliers can receive contracts in the newly available global marketplace • On line auctions • Access to global supply base • Suppliers can plan to real-time demand • Just in Time delivery • Decrease requirement for warehousing of raw materials or sub-assemblies • Reduce cost of inventory held by the supplier

14. eMake • Ensures that the materials required for manufacture arrive at the correct point in the production line at exactly the correct point in the production cycle • Reduce excess of inventory carrying costs on the manufacturing site • Increase the efficiency and accuracy of the production line • Companies are driving to be more flexible without idle inventory • Configure to order (CTO), and build to order (BTO) • Real-time order status to sales force and customers • Live video link from shop floor

15. eDeliver • eDeliver captures all required customer shipment data, knows the optimal route / cost option and selects carrier • Order tracked individually through the Supply-chain from order confirmation to delivery receipt by request date to customer • Valuable Supply Chain measurement metric • Delivery Performance to Request Date

16. Over $5bn internet sales $250 Million cost reduction Internet sales Operating cost eDeliver example • Cisco Connection Online allows customers to place orders, track status, and obtain support on-line

17. eSupply-Chain requires a route map for success Supply Chain process maturity Extended Enterprise Integrated Supply Chain Functional Organisation (Silo) Informal Preffered route Recommended Possible but risky Not recommended or impossible eCommerce Level of maturity Zero Transactional Commercial Collaborative

18. eSupply-ChainComing to Your Industry Soon

19. Europe is now entering the eCommerce ‘Hyper-growth’ phase

20. PLAN SOURCE MAKE DELIVER A Prediction for Discussion The 21st Century Supply Chain will be a ‘Unit of One’ Supply Chain

21. http://www.prtm.com http://www.hightechgateway.com PRTM on the Internet