Supply chain Problems and Solutions Typical Problems along the Supply Chain a lack of logistics infrastructure exacerbates uncertainties that exist in delivery times Quality problems with materials and parts can contribute to deficiencies in the supply chain Pure Ec companies are likely to have more supply chain problems because they do not have a logistics infrastructure and are forced to use external logistics servces Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 11 Supply Chain Problems and Solutions • Typical Problems along the Supply Chain – A lack of logistics infrastructure exacerbates uncertainties that exist in delivery times – Quality problems with materials and parts can contribute to deficiencies in the supply chain – Pure EC companies are likely to have more supply chain problems because they do not have a logistics infrastructure and are forced to use external logistics services
Supply chain Problems and Solutions Typical Problems along the Supply Chain Other problems along the EC supply chain mainly stem from the need to coordinate several activities and internal units and business partners bullwhip effect Erratic shifts in orders up and down supply chains Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 12 Supply Chain Problems and Solutions • Typical Problems along the Supply Chain – Other problems along the EC supply chain mainly stem from the need to coordinate several activities and internal units and business partners bullwhip effect Erratic shifts in orders up and down supply chains
Supply chain Problems and Solutions The Need for Information Sharing along the Supply chain a supply chain includes the flow of information to and from all participating entities It includes Product pricing · Inventory Shipping status Credit and financial information Technology news Electronic Commerc Prentice Hall 2006 3
Electronic Commerce Prentice Hall © 2006 13 Supply Chain Problems and Solutions • The Need for Information Sharing along the Supply Chain – A supply chain includes the flow of information to and from all participating entities – It includes: • Product pricing • Inventory • Shipping status • Credit and financial information • Technology news
Supply chain Problems and Solutions EC Solutions along the Supply Chain Order taking can be done over the Internet, EDI EDI/Internet, or an extranet, and may be fully automated Order fulfillment can become instant if the products can be digitized Electronic payments can expedite both the order fulfillment cycle and the payment delivery period Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 14 Supply Chain Problems and Solutions • EC Solutions along the Supply Chain – Order taking can be done over the Internet, EDI, EDI/Internet, or an extranet, and may be fully automated – Order fulfillment can become instant if the products can be digitized – Electronic payments can expedite both the order fulfillment cycle and the payment delivery period
Supply chain Problems and Solutions EC Solutions along the Supply Chain Managing risk to avoid supply-chain breakdown can be done in several ways Inventories can be minimized by introducing a build to-order (on-demand)manufacturing process as well as by providing fast and accurate information to suppliers Collaborative commerce among members of the supply chain can be done in many areas Electronic Commerc Prentice Hall 2006 15
Electronic Commerce Prentice Hall © 2006 15 Supply Chain Problems and Solutions • EC Solutions along the Supply Chain – Managing risk to avoid supply-chain breakdown can be done in several ways – Inventories can be minimized by introducing a buildto-order (on-demand) manufacturing process as well as by providing fast and accurate information to suppliers – Collaborative commerce among members of the supply chain can be done in many areas