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E-Commerce's Impact on SCM

The document discusses the role of e-commerce in supply chain management. It begins by defining key terms like e-commerce, supply chain, and supply chain management. It then discusses how e-commerce technologies like electronic data interchange (EDI) can help overcome problems in supply chain management and effectively be used in SCM. Specifically, e-commerce allows for automated and integrated system-to-system communication across the supply chain. It also allows companies to have end-to-end visibility and control of their supply chain processes. The document concludes by examining some case studies and identifying managerial and technical challenges companies may face when implementing e-commerce solutions in their supply chains.

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0% found this document useful (0 votes)
201 views21 pages

E-Commerce's Impact on SCM

The document discusses the role of e-commerce in supply chain management. It begins by defining key terms like e-commerce, supply chain, and supply chain management. It then discusses how e-commerce technologies like electronic data interchange (EDI) can help overcome problems in supply chain management and effectively be used in SCM. Specifically, e-commerce allows for automated and integrated system-to-system communication across the supply chain. It also allows companies to have end-to-end visibility and control of their supply chain processes. The document concludes by examining some case studies and identifying managerial and technical challenges companies may face when implementing e-commerce solutions in their supply chains.

Uploaded by

Durga Prasad
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Student Id: 09002219 Module: Research Methods

The Role of E-Commerce in Supply Chain Management

Abstract:
The appearance of E-commerce technologies has formed infinite opportunities for firms to widen
and modernize their supply chains. Electronic data interchange (EDI) has been introduce to make
easy coordination and business-to-business communication between supply chain associates. The
means to organizing a supply chain, on the other hand, is to observe it as a single unit and not
just as a chain of one to one relations between organization all along the chain. Consequently,
there are troubles to make use of of electronic data interchange (EDI) in supply chain
management (SCM).

The benefits that E-commerce technologies have to offer towards developing and maintaining a
truly holistic approach to SCM are now being realized. This paper first defines the terms e-
commerce, e-business, supply chain, and Supply Chain Management, then it delves into
problems with the use of EDI in SCM. The main thrust is to show how E-commerce technologies
can help overcome these problems and effectively be used in SCM. It ends by identifying some
managerial and technical issues corporations will face in order to e-enable their SCM, and by
showing some case studies.

Introduction:-

E-commerce does not just simply shopping and trading on the browser. It means company
efficiency at all business levels. Employee’s know it is important to success firm operations, but
at the present experimental performance actions have been as limited as the number of business
executives of China who heard of the phrase "supply chain management" (SCM).
Supply Chain Management means coordinate, arrangement and controlling gain, manufacturing,
inventory and mailing the services and products to clients. The supply chain management is the
strength of Ecommerce, a very significant element of E-commerce. Supply Chain Efficiency
Is that delivering the right goods at the right time at the right place, can keep money condense
costs, and can increase cash utilization.
Student Id: 09002219 Module: Research Methods

Electronic commerce (e-commerce) has revolutionized all facet of business and industry. E-
commerce is generally understood to mean buying and selling of information, products, and
services via computer networks (Kalakota and Whinston, 1996). i.e. Transaction. It is about
redesigning trading processes with the need of software based technologies.
E-Business is more than just e-commerce it is the uninterrupted optimization of an firm’s value
proposition and value chain position using the electronically linked marketplace and the use of
the Internet as the main communications standard, including all business processes and e-
Commerce.
Supply Chain the central part of business processes in an firm that make and deliver a service or
product from concept through manufacturing and developing or conversion, and into a market
for utilization.
Supply Chain Management is the methods, leadership and systems that continuously develop an
organization’s integrated processes for service and product design, inventory management,
purchasing, distribution, logistics and customer satisfaction.

Background:-
Competition in the 21st century will be across supply chains, not individual firms. A supply
chain is a network of facilities and distribution options for the whole network of firms to work
jointly to design, produce, deliver, and service products. Since its start about 10 years ago, the
element of supply chain management has become extremely important to firms in an
increasingly competitive global marketplace. Companies targeted mainly on quality (Q)
improvements in 70’s, manufacturing cost(C) before 70’s, manufactured goods delivery time (T)
in 80’s, services (S) in earlier 90’s, and environmental (E) compatibility in late 90’s within their
surrounded walls; now their efforts widen across those walls to include the whole supply chain
intelligently and efficiently in a knowledge based (K) financial system of this Millennium.
Humans are a kind of forgetting what tools and efficiency means for the earlier industrialization
process. Automation or tools have played a major role in manufacturing efficiency and quality.
Latest technology shipping tools have sophisticated delivering efficiency in a remarkable way.
Money as a economic device is an understandable tool to assist goods exchange efficiency. How
does Internet help to change and shape today’s firms in this information era? The answer is
“ebusiness”. E-business communications is an information instrument for optimizing the
complete trade management and action processes.
Student Id: 09002219 Module: Research Methods

Aim and objectives:


 There has been a change of stress in the driver of the supply chain. Producer were the
main point for good manufacture and distribution with quality being the competitive
differentiator. These days, it is the clients who is calling the shots.
 A brief history as to how this model shift came about is issued by Handfield and Nichols
(1999). Some 40 years ago, firms had begun to understand the benefits of maintaining
and capturing customer constancy, improving market place strategies to that extend.
Planned engineers skillfully translated customer’s requirements into very improved
quality reasonably priced product and service specifications.
 All the way through the 1980s as demand for new improved products increased,
manufacturers had to enhance their flexibility and responsiveness by developing or
modifying new goods and processes in order to keep up with ever altering customer
requirements. The manufacturer’s suppliers and their effort into these processes impact
upon this responsiveness. Not only is there an downstream impact but also a upstream
impact in terms of where, when and how the consumer receives the finished product in a
cost effective way.
 Supply chain management seeks to reach the requirements of the final end customer
through the incorporated of supply chain activities for the shared benefit of all parties
involved, specifically the focal organisation, its suppliers, their suppliers, your customers
and their customers all functioning together to accomplish a sustainable competitive
advantage.
 Automatic and Integrated system-to-system communication with all trading associates
 The capability to incorporate those communications flawlessly with your in-house
processes and applications to give true end-to-end control and visibility.
 Accommodation of the individual hint of each associates mode of interaction.
 An advanced quality and consistent means of sharing messages over the Internet, which
provide business level guarantee of delivery and honesty.
 Intelligent administration of those communications, allowing control and capability to
change them energetically
Student Id: 09002219 Module: Research Methods

 The capability to adapt to change, by rapidly and effortlessly locating new services or
partners, learning their exact capabilities, and forming a quick "electronic bond" with
them.
“The objective of SCM is to create the most value, not simply for the company but for the whole
supply chain network, including the end customer .Consequently, supply chain process
integration and re-engineering initiatives should be aimed at boosting total process efficiency
and effectiveness across members of the supply chain,” (Lambert, 2001).
 According to Slack et al (1998), SCM is about meeting three objectives:
 Targeting on satisfying end clients since it is the purchaser who trigger act along the
complete supply chain, each company in the chain takes a cut in the purchase (or
currency) of a good having kept their margin for the worth they have added. The
requirements of that end customer require to be met all the way through the supply chain
processes.
 Implementing and formulating strategies that succeed and retain customer business.
 Taking a holistic approach to organising the complete supply chain efficiently and
effectively.
 The main objective is to expand the business operations.
 To give a firm competitive edage.

Literature Review:-
Supply chain relationships
SMC is “the management of upstream and downstream relationships with suppliers and
customers to deliver superior customer value at less cost to the supply chain as a whole”
(Christopher 1998).
In the established SCM, firms tactically part their relationships and establish arm’s extent
relationships with a number of supply chain members and strategic partnerships and alliances
with others. Internet has an impact on how firms supervise all kind of relationships. For the
planned partnership approach, Internet enable firms to share data and knowledge and to plan
together, leading to superior level of organization and teamwork. And, for the arm’s length
approach, companies can benefit from the use of energetic price structure that are web enabled.
The previous papers are mostly descriptive. (Jap and Mohr 2002) pressure the require to properly
match e-commerce strategies with the nature of managerial relationships. (O'Keefe 2001a) and
Student Id: 09002219 Module: Research Methods

(O'Keeffe 2001b) state that if a company has not invested in the relationship with its suppliers,
its capability to capture the complete worth of the Internet will be partial. (Williams, Esper et al.
2002) explore the force of Internet on strategic alliances and partnerships. And, (Agarwal and
Shankar 2003) identify alternative for faith development between supplier and buyers in the e-
enabled supply chain. There is only one empirically based paper: (Golicic, Davis et al. 2002) .
This term paper provide a case study which intend is to widen stranded theory of the contact of
e-commerce on organizing supply chain relationships.

Authors Abstract Methodolgy

belief is a necessary force in


mainly buyer supplier dealings.
The term paper identify alternative
for faith development between
buyer and supplier in the e-enabled
supply chain. In organize to
evaluate alternatives to evolve trust
(Agarwal and
in an e-enabled supply chain, a Decision models
Shankar 2003)
framework connecting methodical
networked process is proposed. For
the descriptive example, the
consequences signify superiority of
a community liability system for
building on-line faith all along the
e-enabled supply chain.
(Golicic, Daviset al. 2002) The document provide a qualitative Case study
study that was carry out with eight
e-commerce firmss in order to
build
academic relationships with which
improve stranded theory of the
force of e-commerce on organizing
Student Id: 09002219 Module: Research Methods

supply
chain relationships. The e-
commerce atmosphere was alleged
as extremely unsure, stemming
from improved
information visibility and energetic
market structures. A stronger
importance on relationship
administration as part of the
business strategy enables manager
to supervise uncertainty improved.
The article describe how the B2B
and rising Internet technologies
can be joined to (1) develop
customer service, cooperation,
relationship quality and (2) reduce
channel conflict. On the other
hand, the author state that Internet
technologies cannot be effectively
(Jap and Mohr
leveraged without allowing for the Descriptive
2002)
managerial relationships in which
these technologies are being fixed.
By properly matching e-commerce
strategies with the environment of
managerial relationships,
companies can develop their
competitive position and
profitability.
B2B e-commerce enhance the
(O'Keefe competitiveness of the
Descriptive
2001a) organization by building
relationship indefinable resources
Student Id: 09002219 Module: Research Methods

(such as the ability of partnering).


On the other hand, it has to be put
into account that if a company has
not invested in the relationship
with its suppliers, its capability to
capture the full worth of the
Internet will be partial.
The author argue that the Internet
does not indicate the ending of
relationships nor stage the playing
filed for dominant buyers and
conventionally weak sellers in the
consumable food industry. The
Internet and e-commerce are
regarded by some as prospective
(O'Keeffe 2001b) Descriptive
barrier to the constant growth of
vertical supply chain partnerships.
The author state that the control of
B2B e-commerce in the
consumable food industry is based
on unleash the value of earlier
investments in standing and
relationship resources.
(Williams, Esper et al. The point of this article is to get rid Descriptive
2002) of light on the present and future
managerial structures in the
logistics business as a consequence
of the beginning of the Internet and
electronic infrastructure. Toward
that end, traditional Supply Chain
administration, electronic Supply
Chain Management and the
Student Id: 09002219 Module: Research Methods

resulting impact on strategic


alliances and partnerships are
explored.
Table:- Literature review: Supply chain relationships
Additional study should attempt to carry out more empirically based studies in order to examine
which has been the actual impact of Internet on the organization of the supply chain
relationships. A few lines of future research are: To examine in a better depth (by developing the
model to a larger number of companies) the force of e-commerce on relationships (Golicic,
Davis et al. 2002) and to examine it from a dyadic or a supply chain viewpoint (Golicic, Davis et
al. 2002) examine it from a single company point of view, and to empirically experiment the
relationship established by (Jap and Mohr 2002) between kind of relationship (relational or
transactional) and Internet efficiency (increased reach, information sharing and dynamic pricing).

e-supply chain management:


Author Abstract Methodology Internet Impact
(Cagliano, The article explore the definite implementation of
Caniato Internet technologies in supply chain process by a
etal. 2003) large sample of European manufacturing Information
companies take part in the IMSS survey. The aim Survey and knowledge
is to examine the relations among Internet sharing.
implementation, dependent factors (such as size,
industry and the place in the supply chain) and
incorporation mechanisms. Four e-business
strategies are recognized (e-sellers, traditional
companies, e-integrators e-purchasers) and their
relationship with dependent factors and supply
chain incorporation mechanisms are examined.
Results explain a close link between the use of
Internet tools and the stage of integration with
suppliers and customers thus signifying the need to
define e-business strategies inconsistency with the
use of traditional incorporation mechanisms.
Student Id: 09002219 Module: Research Methods

(Frohlich This article empirically shows two key research Information


and questions: (1) Is there a optimistic relationship Survey and
Westbrook between performance and eintegration? and (2) knowledge
2002) what are the key problems that obstruct sharing
integration? E-integration is examined in different
processes downstream (with customers) and
upstream (with suppliers).
.
This critique describe concept for fundamental
(Clarke logistics. With fundamental logistics the physical Efficient SC
Descriptive design
1998) and information aspect of logistics operation are
treated separately. The author describe how
Internet remove operating constraint and allow for
a more efficient design of logistics networks.
(Graham This term paper deal with latest competitive Descriptive Efficient SC
and challenge being design
Hardaker realize from the rate of growth of the Internet and
2000) the
need to put up commercially viable supply chains
to meet
the challenge face by the rising effective
organizations.
(Johnson In this article, the authors observe how the web is
and altering SCM. They conduct a literature review on Literature knowledge
Whang the impact of ebusiness on SCM and divided the review sharing and
2002) work into three main categories there are Information
e-commerce, ecollaboration and e-procurement.

Table:- e-Supply chain management

Further investigation and research is needed on e-SCM as it is in initial stage. For example to
develop a SCM real time model on life cycle management, dynamic pricing and production
Student Id: 09002219 Module: Research Methods

coordination, to implement the observation on the impact on different internet chain supply
processes.
Philosophy of research:-
The internet has been explained as breakthrough technology. Its use in firm can significantly
vary the state in the business sector leading usual enterprise to fall down. In the period of the
Digital Revolution, post industrial society is developing towards the information society creating
the base of the New Economy. Its fundamental elements contain enormous accomplishment of
Information Technology, globalization process and the organization of effective enterprises.
Implement process take the type of pro-active commerce that fosters improvement and
representation of its market offer.
Firms that make use of most Internet infrastructure in their actions bring out a specific e-business
model. Their main key product is information. It is based on changing the established supply
chain management into e-supply chain management well as on developing the so called ‘Internet
value network.’ In order to be develop, the firm has to be correctly organized for the latest
conditions, which is called net readiness.
Virtual Supply Chain – Internet Value Network (e-SCM)
Firms that make use of Internet infrastructure in their operation can be classify into three
categories: users, suppliers and telecommunications businesses. They put forward both virtual
and traditional enterprises a large range of services to contact on-line opportunities and
resources. This access is base on the ‘5c’ (Afuah and Tucci 2003):
 Commerce,
 Coordination,
 Community,
 Communications,
 Content.
In this manner a virtual supply chain is formed which is severely linked with the traditional
supply chain based on the flow of products and services The combined action of wide use of
Electronic Data Interchange (EDI), Internet properties, intellectual capital and knowledge of
firms plus the usefulness of traditional supply chain management system solutions all show the
way to organization of the supply chain in the new economy, i. e. escm (electronic Supply
ChainManagement) and to the formation of the Internet value network (Afuah and Tucci 2003).
Student Id: 09002219 Module: Research Methods

Despite the fact that it is based in several cases on the so called dynamic network, make use of
the support of the mother firm with a network of exclusively preferred partners, it is commonly
based on a ample make use of of the Internet in the following process: physical movement,
commerce, planning, production, product design and supply. Intellectual capital and knowledge
of new economy firms build, according to L. Edvinsson’s rooted tree theory (Edvinsson and
Malone 2001), the basis for their actual sphere, i.e. production flow and physical which stimulate
the growth of further spheres of their action in their secure and worldwide environment in
addition to causal to their increasing competitiveness.

Ecommerce

e production e SCM e design

e logistics e supply

e planning

growth reduction

cutomer loyalty reation time


contract efficiency operating cost
product availability servicing cost
flexibility sales cost

The Philosophy of supply chain management in the new economy


Elements of eSCM (author’s analysis)

Research methods:-
Advantages of SCM and eSCM

1. Overhead charges can be reduced


Student Id: 09002219 Module: Research Methods

2. Paperwork can be eliminated

3. Transition speed can be increased

4. Facilitate immediate information exchange

5. Revenue can be increased

6. Makes allocation more clients friendly

7. Sales plan and execution of production forecast regularly received

8. Examine diverse supply line models and later optimize them

9. Computerize warehouse inventory administration

10. Connect basics of market analysis and maintain friendly interface dealings with suppliers

11. Economies of scope and scale

12. Concentrate on interior competence

13. Lead time can be reduced

14. Flexibility to clients

Disadvantages

1. Supply chain management is personalized to particular company and definite industry.

2. Systems are frequently securely integrated a limited to only some trading partners and
suppliers.

3. The main purpose of supply chain management is more of cooperation than price
compromise.

4. The price of accomplishment is higher.


Student Id: 09002219 Module: Research Methods

5. A lot of mistakes are done at foremost.


6. Has an inner resistance to alter.
7. It’s very hard to put on trust from your partners and supplies.

ADVANTAGES OF ECOMMERCE:
 Begin able to carry out commerce 24 x 7 x365.
 Able to access worldwide market place.
 Speed up.
 Market space.
 Independent computer platform.
 Customer outsourcing and customer self service is allowed.

CONSTRIANTS OF ECOMMERCE:
 Delivery time can be more for physical products.
 Delivery and supply may be uncertainty.
 Goods are perishable.
 Payment, privacy, contract, security
 Goods returning.
 Services may be personal.

ROLE OF E-COMMERCE IN SCM:


 COST EFFICIENCY :
E-commerce allows shipping firms of all sizes to exchange goods papers automatically
over the internet. By using e-commerce, firms can decrease prices, accelerate business
cycles, improve data accuracy and exchange customer services.
 Change in the distribution process:
E-commerce will give businesses more suppleness in organizing the growing complex
association of information and products between their suppliers, business and customers.
Student Id: 09002219 Module: Research Methods

 Customer orientation:
E-commerce will assist firms bring enhanced services to the clients and lesser their
operating prices. E-commerce make it easier for purchaser to do commerce with the firm.

 Online shipping enquiry:


This facilitates instant delivery data access to everyone in the firm, from any area. A
customer’s performance and carrying costs can be analyzed, therefore helping the
purchaser negotiate prices and better services.

The benefits accessible by EDI pale in comparison with those available via E-commerce-based
technologies (Cross, 2000). A few may yet view the Internet’s impact on SCM as rivaling that of
the interstate highway system on the transportation industry (Carter el al., 2000). E-commerce-
based technologies are able of delivering a holistic system that incorporate what EDI is
previously capable of accomplishing combining it with wide based admission and price
effective, real time paper distribution and transmission (e.g., Larson and Kulchitsky, 2000). This
part discusses how E-Commerce technologies can assist achieve these and other objectives, and
how some firms are really using these technologies to understand these goals. The facts of e-
enabled SCM is particularly noticeable in the elevated technology atmosphere where product life
cycles are frequently calculated in months or even days. Companies like Cisco, IBM and Dell,
guide the revolution by rising broad and worldwide supply chains characterize by near to the
ground inventory levels, incline production, insist collaboration, and deferred assembly resulted
in lower expenses and greater responsiveness to altering market situation (Cross, 2000).

A case in point is IBM. It has realized major benefits from e-enablement. Since 1994, IBM has
condensed inventory write-offs by $800 million, improved on-time delivery from 90% to 98%,
and condensed order time from 2 weeks to real time.

On the supply part, the big blue has decreased the price of purchasing commodities and services
by $4.2 billion (Cross, 2000).
Student Id: 09002219 Module: Research Methods

Extranets link different associates in the supply chain using a private or public transportation
infrastructure. The accessibility of the Internet to automatically transfer huge amounts of
information more the extranets with minimum time and attempt has resulted in effi- Issues and
Trends of IT Management in Contemporary businesses 349 client and helpful sharing of
information between business partners.

Companies have used the Internet and extranets to, among others, reduce delivery costs and
increase the number of deliveries.

A case in point is General Electric. GE has used the Internet to schedule shipments out of its
warehouses in metropolitan areas. The numbers of deliveries per hour has increased significantly
while transportation costs per order have dropped dramatically (Lancioni et al., 2000).

Firms would benefit from increased use of the Internet in purchasing activities, and the potential
for significant cost savings and productivity improvement suggests so (Deeter-Schmelz et al.,
2001).

The E-commerce technologies can also increase the value of the information that can be
transmitted back and forth in the context of SCM.

A case in point is, again, General Electric. In 1996, GE decided to streamline, using the Web, its
procurement process for certain products that require a formal request for proposal (RFP). GE
believed that it can use the Web to reduce both the time and cost involved in the process. In fact,
cycle time for the RFP process dropped from 29 days using the manual process down to 4 to 12
days over the Web (Cross, 2000).

E-commerce technologies increase the value of the information that can be exchanged.
Previously, via EDI, only transactions could have been transmitted back and forth. E-commerce
technologies are helping SCM become more of a global business-to-business phenomenon by
greatly increasing the size of the audience that can be reached.

The one-to-one nature of EDI in SCM has definitely been superceded by the many-to-many
capabilities of E-commerce technologies.
Student Id: 09002219 Module: Research Methods

A case in point is the Automotive Network Exchange (ANX) recently established by the big
three automakers: General Motors Corporation, Ford Motor Company, and Daimler- Chrysler
AG. Even though the project is presently in its infancy, it still makes the point. The goal here is
to create a very large virtual marketplace using a reliable, secure, highly efficient extranet where
all automakers can conduct business with suppliers and other business partners (Peters, 2000).

1. E-Commerce Facilitated Supply Chain Management


The impact of e-commerce on supply chain management (SCM) has to be analyzed in two
stages. In the first stage we study the business environment to decide whether the marketplace is
dominated by suppliers, buyers, or intermediaries. Then we look at the technological interface
among those entities.

In supplier-oriented marketplace, the ‘electronic store’ is defined by the supplier. An example of


this business model is Dell (Turban et al, 2000). 90 percent of the computers sold by Dell was for
business customers. In a buyeroriented marketplace, potential suppliers are required to bid on the
buyer’s server. General Electric is an example of this type of business model. In an intermediary-
oriented marketplace, customer’s order information, supplier’s product information are handled
by the intermediaries’ server. Boeings’ PART is an example of an intermediary mall.

The integration of software agent to EDI is estimated to resolve the ambiguity in the legacy EDI
systems.

UDDI has the advantage of being a straightforward interface but lacks elements that automate
the quality and timeliness requirements of direct procurement. While it has the potential to
address these requirements, ebXML is more complex and more difficult to implement. XML/edi
will always be an upgrade to an antiquated system, unlikely to appeal to companies that are not
already using EDI.

From the buyer’s perspective, the goal is to achieve automatic procurement from several
suppliers with an emphasis on quality and timeliness. In addition, the buyer is also interested in
supplier’s catalog data in order to ensure consistent product specifications. On the other hand, the
supplier is interested in maximizing the number of customer companies. Suppliers want to be
Student Id: 09002219 Module: Research Methods

involved in buyer’s inventory management so that a demand signal automatically triggers an


appropriate order.

In order to automate supply chain, one of the essential requirements is interoperability. In this
regard, UDDI is particularly useful. As both Ariba and Commerce One support UDDI,
companies that use e-marketplaces supplied by those vendors will be able to connect with each
other.

Another important issue that contributes to the success of supply chain automation is the need for
constant site monitoring. Ensuring smooth working of a site while the user environment changes
will ensure customer retention (Mitchell, 2001). We now have developers offering performance
management tools that predict the performance of e-business applications.

Case Studies:
Streamline.com
After an discussion to conclude what the people wants to use, Streamline installs 2 containers in
the residence

• Dry

• Refrigerated

The business driver uses a keypad security device to get access to the garage even when no one
is residence

The driver deliver fresh foodstuff and other goods on a expedient schedule. The driver puts the
goods into the dry storage or refrigerator and replaces as consumed

Land’s End
 Market segment – women looking
 Problem – they don’t desire to attempt suits on in a store
 Electronic solution – Swim Suit Finder
 Detail – site allows the customer to use practical certainty to face, body shape, insert hair,
skin tone, and then decide from hundreds of styles to select the suit(s) of selection
 Each tradition made suit is delivered to the residence
Student Id: 09002219 Module: Research Methods

 First-year sales – $60 million


Toyota
 Objective – to build a vehicle in just 5 days after the purchaser has ordered from the trader
First necessity – renovate parts procurement which had thirty days lead time Cambridge,
Ontario site chosen for pilot Logistics “kaizen” will make sure right colours and mixture of
parts deliver exactly when required at the plant
 Innovative system assigns each dealer a circuit resembling a postal way
 Trucks voyage from dealer to dealer, altering empty containers for parts, then take parts to a
local “cross-dock” for arrangement into small lots
Boeing Aircraft, Rocket dyne Division
 97% manufacturing costs is decreased
 Cut the growth cycle by 50%, from 2 years
 condensed mechanized cycle time by 63%, from 2 years to 9 months
 Decreased number of parts from 100’s to 6
 Produced a data depository for re-use on succeeding projects
 Extranet with hundred value chain members to increase latest rocket burning engines
 Advanced the Internet and supply chain management
 Online representation and spec transfer, changes, agreement and approval
Dell Online Support Program
Dell’s Open Manage Resolution Assistant use technology from Motive Communications, over a
secure, virtual, encrypted, private network to offer distant diagnostics and practical notices of
troubles based on its information about a system’s design.

Conclusion:
Internet base technology facilitates the oil and the spark for various changes to present
manufacturing societies. Primarily, these alters will mostly raise the efficiency of transportation
profitable transactions. Over the mid-term, Internet based knowledge will make easy and
increase speed key ongoing trend, and thus develop SC management, and allow further radical
reformation and innovation. To develop these opportunities, superior management should a)
move expeditiously to execute E-commerce; b) evaluate their present competitive situation in
Student Id: 09002219 Module: Research Methods

relation to the speed trends illustrated above; c) conclude whether they desire to track, lead or lag
these trend and d) enlarge latest multi-functional skills and further flexible systems.

Abbreviations:-

SCM : supply chain management

UDDI : universal description, discovery and integration

ebXML : e-business Extensible Markup Language

References:
Adam, N. R. and Yesha, Y. (1996). Electronic Commerce: Current Research Issues and
Applications, Berlin: Springer.

Bakos, Y. (1998). “The Emerging Role of Electronic Marketplaces on the Internet,”


Communications of the ACM, Vol. 41, No. 8, pp. 35 – 42.

Bloomberg, J. (2001). “What XML Will Do for Supply Chain Automation?” Ecomworld.com,
February 5.

Choi, S. et al. (1997). The Economics of Electronic Commerce, Macmillan Technical Publishing.

Cunningham, P. and F. Froschl, F. (1999). Electronic Business Revolution, Berlin: Springer.

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Student Id: 09002219 Module: Research Methods

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Student Id: 09002219 Module: Research Methods

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