Basics to E- Business.ppt

Supply Chain Management:Basics to E- Business
Larry Lapide, AMR Research
Vice President of Research Operations, Business Applications
© 1999 AMR Research, Inc.
Agenda
What’s Driving the Supply Chain and e-Business Excitement?
Overview of Supply Chain Management (SCM) and Technology
Overview of SCM Issues
SCM and e-Business Practices
Conclusions
Manufacturers
Wholesale Distributors
Suppliers
Customers
Information Flows
Goods Flow
Retailers
The Traditional Supply Chain
Manufacturers
Wholesale Distributors
Suppliers
Customers
Information Flows
Goods Flow
Future -Connected Supply Chain
Supplier
Exchanges
Customer
Exchanges
Logistics
Exchanges
Contract Manufacturers
Logistics Providers
Virtual Manufacturers
Retailers
APS and e-business technology supports best SCM practices
SCM will allow panies to reap of $300B to $400B of savings ( 1997: GDP $ )
3% to 5% of revenue savings for best panies*
50% reduction in cash-to-cash cycle*
17% improvement in meeting customer delivery dates*
*Source: PRTM Integrated Supply Chain Benchmarking Study, 1997
MRP
SCM
APS and e-business
Evolution of SCM Technology
*Source: PRTM Integrated Supply Chain Benchmarking Study, 1997
Typical Quantified Benefits from Integrated the Supply Chain
Delivery Performance
16%-28% Improvement
Inventory Reduction
25%-60% Improvement
Fulfillment Cycle Time
30%-50% Improvement
Forecast Accuracy
25%-80% Improvement
Overall Productivity
10%-16% Improvement
Lower Supply-Chain Costs
25%-50% Improvement
Fill Rates
20%-30% Improvement
Improved Capacity Realization
10%-20% Improvement
Enterprise functional silos with conflicting goals
Purchasing
Manufacturing
Distribution
Customer Service/
Sales
Few change- overs
Stable schedules
Long run lengths
High inventories
High service levels
Regional stocks
SOURCE
MAKE
DELIVER
SELL
Low pur-chase price
Multiple vendors
Low invent-ories
Low trans-portation
Overview of SCM - Issues
Internal Integration and