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Chapter 6
Chapter 6
E-Supply Chains, Collaborative Commerce, and Corporate Portals
Learning Objectives
Upon completion of this chapter, you will be able to:
1. Define the e-supply chain and describe its characteristics and components.
2. List supply chain problems and their causes.
3. List solutions provided by e-commerce (EC) for supply chain problems.
4. Describe RFID supply chain applications.
5. Define c-commerce and list the major types.
6. Describe collaborative planning and collaboration, planning, forecasting, and replenishing (CPFR) and list the benefits of each.
7. Discuss integration along the supply chain.
8. Understand corporate portals and their types and roles.
9. Describe e-collaboration tools such as workflow software and groupware.
10. Describe Collaboration 2.0 technology and tools.
Content
Opening Case: Boeing’s Global Supply Chain for the Dreamliner 787
6.1 E-Supply Chains
6.2 Supply Chain Problems and Solutions
6.3 RFID as a Key Enabler in Supply Chain Management
6.4 Collaborative Commerce
6.5 Collaborative Planning, CPFR, APS, and PLM
6.6 Supply Chain Integration
6.7 Corporate (Enterprise) Portals
6.8 Collaboration-Enabling Environments and Tools
Managerial Issues
Closing Case: How Wal-Mart Uses EC in Its Supply Chain
Answers to Section Review Questions
Section 6.1 Review Questions
1.Define the e-supply chain and list its three major parts.
It is a supply chain that is managed electronically, usually using Web technologies and has three major parts: upstream, internal, and downstream.
2.Describe success factors of e-supply chain management.
These factors include the ability to see collaboration as an asset, information visibility, speed/quality/customer service, and tight integration.
3.List the eight processes of e-supply chains.
These include replenishment, e-procurement, monitoring, inventory management, collaborative planning, collaborative design, e-logistics, and the use of B2B exchanges/supply webs.
4.List the major e-supply chain management infrastructures and enabling tools.
These include extranets, intranets, corporate portals, workflow systems, and groupware.
5. Describe a digital supply chain.
A supply chain that is managed electronically, usually with Web technologies.
6. Describe visibility and tracking along the supply chain.
Visibility and tracking are important so that there will not be any surprises related to order quantity or delivery times. Various systems and databases track production and distribution so that any needed adjustments can be made.
Section 6.2 Review Questions
1.Describe some typical problems along the supply chain.
Some problems include missed deliveries/improper inventories and quality problems.
2.Describe the reasons for supply chain-related problems.
There are several potential reasons, but many center on lack of communication and trust.
3.Describe the bullwhip effect.
The bullwhip effect is when large fluctuations in inventories along the supply chain occur, resulting from small fluctuations in demand for finished products.
4.Describe the benefits of information sharing along the supply chain.
The major benefit is an improvement in the overall functioning of the supply chain – better communication provides more information for better planning.
5.List some EC solutions to supply chain problems.
These solutions come in the areas of order taking, order fulfillment, payment, inventory planning and collaborative commerce.
Section 6.3 Review Questions
1.Describe how RFID can be used to improve supply chains.
RFID tags can be attached to products to more carefully monitor their location for inventory purposes.
2.Explain how RFID works in a supplier-retailer system.
Suppliers attach RFID tags so retailers can track shipment and receiving.
3. Briefly explain the differences between active and passive RFID tags.
Active tags include an internal power supply while passive tags do not.
4. In what circumstances would it be better to use passive RFID tags? And in what circumstances might it be better to use active RFID tags?
Passive tags are better in cost-sensitive, high volume settings where scanning is easy. Active tags are better in difficult to scan locations.
5. What are some of the major limitations of RFID technology?
- Cost of implementation
- Limited use by environment
- Accuracy
- Privacy
- Lack of standards
6. Describe RuBee and its capabilities.
RuBee is a bidirectional, on-demand, peer-to-peer radiating transceiver protocol. RuBee has several complimentary features that include:
- Use of magnetic waves
- Longer battery life
- Better locatiblity
- Lower cost infrastructure
Section 6.4 Review Questions
1.Define c-commerce.
The use of digital technologies that enable companies to collaboratively plan, design, develop, manage, and research products, services, and innovative EC applications.
2.List the major types of c-commerce.
These include joint design and forecasting.
3.Describe some examples of c-commerce.
Some examples include communication/collaboration at RE/MAX, information sharing at Marriot and supply chain visibility at Nygard.
4.Define collaborative networks and distinguish them from traditional supply chain collaboration.
The collaborative network allows partners at any point in the network to interact with each other directly, bypassing traditional partners. Interaction may occur among several manufacturers or distributors, as well as with new players, such as software agents that act as aggregators, B2B exchanges, hubs, or logistics providers.
5.Define VMI and list its benefits.
Vendor-managed inventory (VMI) – The practice of retailers making suppliers responsible for determining when to order and how much to order. Benefits include less time spent on calculations and more accurate order quantities.
6.List some major barriers to c-commerce.
These include technical limitations, security concerns, internal resistance, and lack of internal skills.
7.How might collaboration support and improve industry supply chains?
It would provide more accurate information about needs and trends which could stabilize the chain and reduce flow times.
Section 6.5 Review Questions
1.Define collaborative planning.
In collaborative planning, business partners—manufacturers, suppliers, distribution partners, and other partners—all have real-time access to point-of-sale order information.
2.Define CPFR and describe its advantages.
A project in which suppliers and retailers collaborate in their planning and demand forecasting to optimize flow of materials along the supply chain. This process helps improve integration and reduces costs and increases speed.
3.Describe APS efforts.
Programs that use algorithms to identify optimal solutions to complex planning problems that are bound by constraints.
4.Describe PLM.
PLM is a business strategy that enables manufacturers to control and share product-related data as a part of product design and development efforts.
Section 6.6 Review Questions
1.Describe internal and external integration.
Internal integration is integrating systems that function together within a business, whereas external integration is the integration of systems from different firms.
2.Explain the need to connect to an ERP system.
In many firms the ERP system is the core of logistics and planning and it contains a wealth of valuable information.
3.Describe the need for integrating standards and methodologies.
Without standards, integration becomes very complex, with each integration becoming its own unique project.
Section 6.7 Review Questions
1.What is a corporate portal?
A corporate portal is a gateway for entering a corporate Web site, enabling communication, collaboration and access to company information.
2.List the types of corporate portals.
Portal types can include supplier/partner portals, customer portals, employee portals, executive/supervisor portals and mobile portals.
3.List five applications of portals.
Some of the possible applications of corporate portals include: knowledge bases and learning tools, business process support, collaboration and project support, data access, and security applications.
4.List the benefits of corporate portals.
These benefits include simple access/navigation, improved access to information, usability of common applications, and the ability to use platform independent applications.
Section 6.8 Review Questions
1.Define workflow systems and management.
The automation of workflows, so that documents, information, and tasks are passed from one participant to the next in the steps of an organization’s business process.
- Explain the types of workflow management systems and benefits of such systems.
The types include collaborative workflow, production workflow, and administrative workflow. Systems can have a number of benefits, including better process visibility, decreased costs and greater efficiency.
3.List the major groupware tools.
See Exhibit 6.11.
4.Describe GDSSs and electronic meeting systems.
GDSSs (Group Decision Support Systems) and electronic meeting systems allow users to collaborate and make decisions regardless of their physical locations.
5. Define virtual teams and virtual meetings and describe how they are supported.
- Virtual team – a group of employees using information and communications technologies to collaborate from different work bases
- Virtual meetings – online meetings whose members are in different locations, even in different countries
6.Describe the various types of electronic teleconferencing, including Web-based conferencing.
Teleconferencing can take place using telephone technology, video, data (documents) or the Web.
7. Describe VoIP, screen sharing, and collaborative workspace.
- Voice-over-IP (VoIP) – communication systems that transmit voice calls over Internet Protocol–based networks
- Screen sharing – allows other remote users to see one user’s computer desktop;whiteboards are shared applications where a group can share a virtual diagramming system
- Collaborative workspace –an interconnected environment in which all the participants in dispersed locations can access and interact with each other just as inside a single entity
8.Describe integrated suites and their benefits.
Integrated suites combine several similar products together. They are generally less expensive, easier to use and provide a larger number of features than individual products.
9. Define virtual teams, mass collaboration, and unified communication.
- Virtual Team –agroup of employees using information and communications technologies to collaborate from different work bases
- Mass collaboration – a form of collective action that occurs when large numbers of people work independently on a single project, often modular in its nature
- Unified communication (UC) – Simplification of all forms of communication in the enterprise
Answers to EC Application Case Questions
EC Application Case 6.1: AIRBUS IMPROVES PRODUCTIVITY WITH RFID
- What are the drivers of the RFID project?
The company hopes to increase efficiency by tracking parts and materials.
- What information technologies were used in this project?
Technologies included RFID cards, readers and software.
- What categories of people are supported by RFID?
The system supports both suppliers and those that work internally with inventory.
- How can RFID provide visibility to Boeing?
The system should allow them to better understand inventories and make better decisions.
- Go to the link provided in the case sources and watch the Webcast. It will provide you with a virtual tour of Airbus’s supply chain. Report on how RFID provides real-time visibility in the key processes.
Student perceptions of the video willvary.
EC Application Case 6.2: West Marine: A CPFR Success Story
1. What were the major elements of West Marine’s CPFR success?
Some factors in its success were the thoroughness of the integration and planning of the IT systems coupled with the close relationship with suppliers.
2. What were the benefits of the CPFR implementation for West Marine?
The system allows them to forecast accurately and better understand the supply chain. It also allows them to more easily integrate new acquisitions.
EC Application Case 6.3: WIKIS, BLOGS, AND CHATS SUPPORT COLLABORATION
AT DRKW
1. What capabilities of the wiki are not available in regular e-mail?
It allows for easy group access and editing.
2. Why are so many tools—blogs, wikis, instant messaging, chat, and audio/videoconferencing—needed?
The company hopes to foster communication across its diverse workforce.
3. How does the wiki increase employee productivity? What types of waste does it reduce?
Employees can easily access information without usingtheir time to search, and an expert’s time to explain.
4. What are some social, cultural, and ethical issues involved in the use of wikis for business collaboration?
Many issues exist, but some include transparency of information and control of editing.
Answers to Discussion Questions
- Define e-supply chain and discuss its importance in supporting organizational performance.
An e-supply chain is a supply chain that is managed electronically, usually with Web technologies. It is more advanced than an IT enabled supply chain that may only use technology in certain points of the chain, as opposed to the entire chain. E-supply chains allow for more efficient processes and expanded communication and collaboration. In many cases they result in decreased delays, increased information flow, better planning, and lower costs.
- Does a company’s supply chain include the movement of money, materials, and information within the company? How are they interrelated?
A supply chain also includes internal movements. The value chain is a superset of the supply chain that includes all functions that add value to the items in the chain. When external partners are included, this comprises the extended value chain.
- Discuss the relationship between c-commerce and corporate portals.
Corporate portals can be used as a method of collaborative commerce for employees, customers and other stakeholders.
- Compare and contrast a commercial portal (such as Yahoo!) with a corporate portal.
Both Web sites provide a variety of information and a variety of types of potential learning and interaction. An Internet portal such as Yahoo! is horizontal, providing a variety of different types of information about various topics. A corporate portal is vertical, providing information only about the company.
5. Discuss the major considerations that must be taken into account when implementing VMI.
The major consideration is the confidence in the vendor and the vendor’s ability to accurately predict the customer’s need, and place that before their desire for sales.
6. Discuss the difference between a portal, a marketplace, and an e-hub. Do you think that there are any significant differences?
Student responses will vary. A portal is a source for single-company information whereas a market place is a multi-company source of commerce and a hub is a multi-company source of information. They are significantly different entities.
7. Discuss the contribution of Web-enabled ERP systems to effective supply chain management.
Student responses will vary. Web-enabled ERP systems have created numerous benefits including greater understanding of the supply chain, improved monitoring, and better external cooperation.
8.Explain the need for groupware as a facilitator of collaboration.
Groupware allows different groups and individuals to freely collaborate and communicate. This is the function groupware is designed for, and it simplifies the process and generally adds to the richness of the communication.
9.Discuss the need for workflow systems as a companion to e-commerce.
Workflow systems allow for more efficient movement of orders, information, or goods.
10.It is said that c-commerce signifies a move from a transaction focus to a relationship focus among supply chain members. Discuss.
Student responses will vary. By increasing communication, information flow and openness, c-commerce tends to view interactions as relationships instead of transactions.
11.Discuss the need for virtual meetings.
Student responses will vary. These meetings allow for greater communication that may not have existed due to the constraints of physical meetings.
12.Discuss how CPFR can lead to more accurate forecasting and discuss how it can resolve the bullwhip effect.
By increasing information flow and openness across the supply chain, CPFR allows all parties to have access to the data used to make forecasts. Having more real data (and fewer estimates) allows for more accurate forecasts and inventory levels.
13. Describe the advantages of RFID over a regular bar code in light of supply chain management.
RFID eliminates the need to scan barcodes, since movement along the supply chain is tracked by actual location.
14. Compare a collaborative hub with a collaborative network.
A hub is a centralized location for collaboration while a network is the infrastructure and tools to collaborate remotely.
15. Enter mobileworldcongress.com and web20.telecomtv.com. List and discuss three mobile communication-related issues of current interest.
Student responses will vary.
Internet Exercises
(Note: URLs may change over time; please check the Internet Exercises on the Turban Web site for possible updates: .)
- Enter ca.com/products and register. Then take the Clever Path Portal Test Drive. (Flash Player from Macromedia is required.) Then enter ibm.com and bea.com. Prepare a list of the major products available for building corporate portals.
Student reports will vary.
2.Enter bea.com. Find the white papers about corporate portals and their justification. Prepare a report based on your findings.
Student reports will vary.
3.Enter doublediamondsoftware.com/product_overview.htm. Identify all potential B2B applications and prepare a report about them.
Student reports will vary.
4.Investigate the status of CPFR. Start at vics.org/committees/cpfr, google.com, and yahoo.com. Also enter supply-chain.org and find information about CPFR. Write a report on the status of CPFR.
Student reports will vary.
- Enter sap.com and bea.com, and find the key capabilities of their enterprise portals. List the benefits of using five of the capabilities of portals.
Student reports will vary.
- Enter nokia.com, mdsi.com, and symbolic.com. Identify the B2E products you find at these sites. Prepare a list of the different products.
Student reports will vary.
- Enter i2.com and review its products. Explain how some of the products facilitate collaboration.
This firm offers software products to assist in supply chain collaboration in the following areas: