E-Commerce Logistics Basics,Chapter One,2,CONTENTS,Introduction to Logistics, E-Commerce,and SCM,Source:,Chapter 1,omit pp.24-29,Core Conceptions,Generalized Supply Chain Model,Enablers of Supply Chain Management,3,Section I,Logistics,Introduction,E-Commerce,Supply Chain Management,4,Why There Is the Lengthy and Unpredictable Time to Market?,Problems and Solutions,How to Do With It?,5,Processes,Problems and Solutions,methods,Lets look into,Something might go wrong,?,6,Old business practices,The industrialized world was characterized by scarcity;,Business focused more on supply than demand;,Business forced to keep large inventory;,Consumers reached only indirectly,7,New customers desires,Wide choice of products and services ;,Specifically designed and delivered products and services,?,8,The Internet Impacts on the World of Commerce,Transportation becomes economical and reliable;,Information characterized by speed, accessibility, accuracy, and relevancy is available;,Transactions can be conducted efficiently;,E-distribution can be launched economically,9,Section II,Core Conceptions,Supply Chain Management,Logistics,10,What Is Supply Chain Management?,Supply Chain (sometimes called the value chain or demand chain) Management consists of the firms collaborating to leverage strategic positioning and to improve operating efficiency. For Each firm involved, the supply chain relationship reflects strategic choice. A supply chain strategy is a channel arrangement based on acknowledged dependency and relationship management. Supply chain operations require managerial processes that span across functional areas within individual firms and link trading partners and customers across organizational boundaries.,supply chain relationship,supply chain strategy,supply chain operations,Three Key Points:-,11,What specific role does logistics play in supply chain operations?,Logistics, in contrast to supply chain management, is the work required to move and position inventory throughout a supply chain.,Logistics is a subset of and occurs within the broader framework of a supply chain arrangement.,Integrated logistics serves to link and synchronize the overall supply chain as a continuous process and is essential for effective supply chain connectivity.,Logistics is the process that creates value by timing and positioning inventory; it is the combination of a firms order management, inventory, transportation, warehousing, materials handling, and packaging as integrated throughout a facility network.,12,Section III,Generalized Supply Chain Model,GeneralizedSupply Chain Arrangement,Supply Chain Structure and Strategy Understanding,13,Generalized Supply Chain Arrangement,Context,Integrated operations,Five flows,Three Key Points:-,14,Supply Chain Management Practice,In practice, many complexities serve to cloud the simplicity of illustrating supply chains as directional line diagrams.,15,Complexity of the Supply chain,Many individual firms simultaneously participate in multiple and competitive supply chains,16,Complexity of the Supply chain,Many individual firms simultaneously participate in multiple and competitive supply chains,17,Case Study,Miller SQA as Value Net,To understand the complexity of virtual supply chain arrangements called value net,Source:-,Industry Insight 1-1, P. 8,PDF File: David Bovet and Joseph Martha, Value Nets,PDF File: Stern Stewart Research, HERMAN MILLER: Growth In The New Economy,18,Simple,Miller SQA as Value Net,Quick,Affordable,19,Customer Aligned,Collaborative and Systemic,Fast Flow,Miller SQA as Value Net,Digital,Agile,20,Successful Supply Chain Strategies,Table 1-1, P. 7,Source:-,Market Saturation Driven,Operationally Agile,Consumer Customizer,Freshness Oriented,Logistics Optimizer,Trade Focused,21,Section IV,Enablers of Supply Chain Management,InformationTechnology,Integrated Management,Responsiveness,Financial Sophistication,Globalization,22,E-Commerce Impactson Market Distribution,Information Technology,E-Commerce Impactson Procurement,23,Integrated Management,Collaboration,Third-Party Logistics Providers,Enterprise Extension,24,Collaboration,Supply chains dominated by Sears, K-Mart, Target, and Wal-Mart are direct competitors in many markets.,Whereas competition remains the dominant model guiding free market economies, the increasing importance of collaboration has positioned the supply chain as a primary unit of competition.,25,Enterprise Extension,The process specialization paradigm is commitment to focusing collaborative arrangements on planning joint operations towards a goal of eliminating nonproductive or non-value-adding work by firms in a supply chain.,The information sharing paradigm is the widespread belief that achieving a high degree of cooperative behavior requires that supply chain participants voluntarily share operating information and jointly plan strategies.,26,Integrated service providers (ISPs), commonly named third-party logistics providers, market a range of logistics services that included all work necessary to service customers, from order entry to product delivery.,