Bài giảng E-commerce business, technology, society - Chapter 12: B2B E-Commerce: Supply Chain Management and Collaborative Commerce

E-commerce Kenneth C. LaudonCarol Guercio Traverbusiness. technology. society.seventh editionCopyright © 2011 Pearson Education, Inc.E-commerce: business. technology. society.Copyright © 2011 Pearson Education, Inc.Copyright © 2010 Pearson Education, Inc.Slide 12-*Chapter 12B2B E-commerce: Supply Chain Management and Collaborative CommerceCopyright © 2011 Pearson Education, Inc.Copyright © 2011 Pearson Education, Inc.Volkswagen Builds Its B2B Net MarketplaceClass DiscussionWhy didn’t Volkswagen want to use a more open or public electronic exchange for its parts supply? Why didn’t it join an industry consortium such as Covisint?What kinds of services are provided by VWGroupSupply?What is eCAP and who benefits from its use?Do you think suppliers are disadvantaged by this B2B marketplace? Slide 12-*Copyright © 2011 Pearson Education, Inc.Trends in B2B E-commerceFirms more comfortable with Internet security, payments, helping expand use of B2B channelsCloud computing and SaaS for B2B servicesGrowing realization that most important benefits are not low costs of materials, but gains in supply chain efficiency, better spend management, improved business processRapid growth in collaborative commerce B2B applications based on private networksB2B communities emergeSlide 12-*Copyright © 2011 Pearson Education, Inc.Defining B2B CommerceBefore Internet:B2B transactions called trade or procurement processTotal inter-firm trade: Total flow of value among firmsB2B commerce: All types of computer-enabled inter-firm tradeB2B e-commerce: The portion of B2B commerce enabled by the InternetSlide 12-*Copyright © 2011 Pearson Education, Inc.Evolution of the Use of Technology Platforms in B2B CommerceFigure 12.1, Page 765Slide 12-*Copyright © 2011 Pearson Education, Inc.Growth of B2B Commerce 2000-2014Slide 12-*SOURCES: Based on data from U.S. Census Bureau, 2010; authors’ estimatesFigure 12.2, Page 768Copyright © 2011 Pearson Education, Inc.The Growth of B2B E-commerce2009–2014: B2B e-commerce will grow from 30% to 35% of total inter-firm tradePrivate industrial networks continue to play dominant role in B2BNon-EDI B2B e-commerce most rapidly growing type of e-commerceEDI still large but will decline over timeSlide 12-*Copyright © 2011 Pearson Education, Inc.Industry ForecastsNot all industries similarly affected by B2B e-commerceNot all industries would benefit equallyFactors influencing move to e-commerceSignificant utilization of EDILarge investments in IT and Internet infrastructuree.g. Aerospace and defense, computer, and industrial equipment industriesMarket concentrated on purchasing and/or sellinge.g. Energy, chemical industriesSlide 12-*Copyright © 2011 Pearson Education, Inc.Potential Benefits of B2B E-commerceLower administrative costsLower search costs for buyersReduced inventory costsIncreasing competition among suppliers (increasing price transparency)Reducing inventory carriedLower transaction costs:Eliminating paperworkAutomating parts of procurement processSlide 12-*Copyright © 2011 Pearson Education, Inc.Potential Benefits (cont’d)Increased production flexibility by ensuring just-in-time parts deliveryImproved quality of products by increasing cooperation among buyers and sellersDecreased product cycle time by sharing of designs and production schedulesIncreased opportunities for collaborating with suppliers and distributorsGreater price transparencySlide 12-*Copyright © 2011 Pearson Education, Inc.The Procurement Process and the Supply ChainProcurement process: The way firms purchase materials they need to make productsSupply chain: Firms that purchase goods, their suppliers, and their suppliers’ suppliers, and relationships and processes involvedSteps in procurement processDeciding who to buy from and what to payCompleting transactionSlide 12-*Copyright © 2011 Pearson Education, Inc.The Procurement ProcessSlide 12-*Figure 12.3, Page 770Copyright © 2011 Pearson Education, Inc.Types of ProcurementFirms purchase two types of goodsDirect goods: integrally involved in production processIndirect goods: All goods not directly involved in production process (MRO goods)Firms use two methods to purchaseContract purchasing: Involves long-term written agreements to purchase specified products, with agreed-upon terms and qualitySpot purchasing: Involves purchase of goods based on immediate needs in larger marketplaces that involve many suppliersSlide 12-*Copyright © 2011 Pearson Education, Inc.Types of Procurement (cont’d)Procurement is highly information intensive and labor intensive – 4.5 million U.S. workersUse of Internet can simplify process and reduce search, research, negotiating costs, aid communication and coordinationMulti-tier supply chainComplex series of transactions between firm and thousands of suppliersSlide 12-*Copyright © 2011 Pearson Education, Inc.The Multi-Tier Supply ChainSlide 12-*Figure 12.4, Page 772Copyright © 2011 Pearson Education, Inc.The Role of Existing Legacy Computer SystemsLegacy computer systemsGenerally older mainframe and minicomputer systems used to manage key business processes within firmMRP systems (Materials requirements planning)Enable firms to predict, track, and manage parts of complex manufactured goodsERP systems (Enterprise resource planning)More sophisticated MRP systems that include human resources and financial components Slide 12-*Copyright © 2011 Pearson Education, Inc.Trends in Supply Chain Management and Collaborative CommerceSupply chain management (SCM): Wide variety of activities that firms and industries use to coordinate key players in their procurement processMajor developments in SCMSupply chain simplificationElectronic data interchangeSupply chain management systemsCollaborative commerceSlide 12-*Copyright © 2011 Pearson Education, Inc.Supply Chain SimplificationEssential for just-in-time production modelsTypically achieved by:Working with strategic group of suppliers to reduce product and administrative costs, while improving qualityPurchasing under long-term contracts that contain specified quality, cost, and timing goalsMay involveJoint product development and designIntegration of computer systemsTight couplingSlide 12-*Copyright © 2011 Pearson Education, Inc.Electronic Data Interchange (EDI)Broadly defined communications protocol for exchanging documents among computersStage 1: 1970s–1980sDocument automationStage 2: Early 1990sDocument eliminationStage 3: Mid-1990sMove toward continuous replenishment/access modelToday: EDI provides for exchange of critical business information between computer applications supporting wide variety of business processesSlide 12-*Copyright © 2011 Pearson Education, Inc.The Evolution of EDI as a B2B MediumSlide 12-*Figure 12.5, Page 774Copyright © 2011 Pearson Education, Inc.Supply Chain Management SystemsContinuously link activities of buying, making, and moving products from suppliers to purchasing firmsIntegrates demand side of business equation by including order entry system in the processWith SCM system and continuous replenishment, inventory is eliminated and production begins only when order is receivedHewlett Packard’s SCM system: Elapsed time from order entry to shipping PC is 48 hours.Slide 12-*Copyright © 2011 Pearson Education, Inc.Supply Chain Management SystemsFigure 12.6, Page 777Slide 12-*Copyright © 2011 Pearson Education, Inc.Insight on TechnologyRFID Autoidentification: Making Your Supply Chain VisibleClass DiscussionWhy is RFID an improvement over bar codes?How does RFID work?Why is Wal-Mart supporting RFID?What impact will widespread adoption of RFID have on Internet B2B commerce?Slide 12-*Copyright © 2011 Pearson Education, Inc.Collaborative CommerceUse of digital technologies enabling organizations to collaboratively design, develop, build, and manage products through life cyclesDirect extension of SCM systems and supply chain simplificationInvolves move from transaction focus to relationship focus among supply chain participantsUnlike EDI, more like an interactive teleconference among members of supply chainExample: Group DekkoSlide 12-*Copyright © 2011 Pearson Education, Inc.Elements of a Collaborative Commerce SystemFigure 12.7, Page 780Slide 12-*Copyright © 2011 Pearson Education, Inc.Two Main Types of Internet-Based B2B CommerceNet marketplaces: Bring together potentially thousands of sellers and buyers in single digital marketplace operated over InternetTransaction-basedSupport many-to-many as well as one-to-many relationshipsPrivate industrial networks: Bring together small number of strategic business partner firms that collaborate to develop highly efficient supply chainsRelationship-basedSupport many-to-one and many-to-few relationshipsLargest form of B2B e-commerceSlide 12-*Copyright © 2011 Pearson Education, Inc.Two Main Types of Internet-Based B2B CommerceFigure 12.8, Page 781Slide 12-*Copyright © 2011 Pearson Education, Inc.Net MarketplacesWays to classify Net marketplaces:Pricing mechanism, nature of market served, ownershipBy business functionalityWhat businesses buy (direct vs. indirect goods)How businesses buy (spot purchasing vs. long-term sourcing)Four main typesE-distributorsE-procurement networksExchangesIndustry consortiaSlide 12-*Copyright © 2011 Pearson Education, Inc.Pure Types of Net MarketplacesFigure 12.9, Page 783Slide 12-*Copyright © 2011 Pearson Education, Inc.Table 12.2, p. 783Slide 12-*Copyright © 2011 Pearson Education, Inc.E-distributorsMost common type of Net marketplaceElectronic catalogs representing products of thousands of direct manufacturersTypically independently owned intermediariesOffer industrial customers single source to purchase indirect goods on spot basisTypically horizontal—serve many different industries with products from many different suppliersUsually fixed price—discounts for large customersExample: W.W. GraingerSlide 12-*Copyright © 2011 Pearson Education, Inc.E-distributorsFigure 12.10, Page 784Slide 12-*Copyright © 2011 Pearson Education, Inc.E-procurement Net MarketplacesIndependently owned intermediariesConnect hundreds of suppliers of indirect goodsFirms pay fees to join marketTypically for long-term contractual purchasing of indirect goods Revenues from transaction fees, licensing consultation services and software, network feesOffer value chain management (VCM) servicesMany-to-many marketExample: AribaSlide 12-*Copyright © 2011 Pearson Education, Inc.E-procurement Net MarketplacesFigure 12.11, Page 786Slide 12-*Copyright © 2011 Pearson Education, Inc.ExchangesIndependently owned online marketplaces Connect hundreds to thousands of suppliers and buyers in dynamic, real-time environmentTypically vertical markets—spot purchasing requirements of large firms in single industryCharge commission fees on transactionVariety of pricing models usedTend to be buyer-biasedSuppliers disadvantaged by competitionMany have failed due to low liquiditySlide 12-*Copyright © 2011 Pearson Education, Inc.ExchangesFigure 12.12, Page 787Slide 12-*Copyright © 2011 Pearson Education, Inc.Industry ConsortiaIndustry-owned vertical markets Enable buyers to purchase direct inputs from limited set of invited participantsEmphasize long-term contractual purchasing, stable relationships, creation of data standardsUltimate objective:Unification of supply chains within entire industries through common network and computing platformMake money from transaction and subscription feesOffer many different pricing mechanismsCan force suppliers to use consortia’s networksSlide 12-*Copyright © 2011 Pearson Education, Inc.Industry ConsortiaFigure 12.13, Page 789Slide 12-*Copyright © 2011 Pearson Education, Inc.The Long-Term Dynamics of Net MarketplacesPure Net marketplaces moving from “electronic marketplace” vision toward more central role in changing procurement processConsortia and exchanges beginning to work together in selected marketsE-distributors joining large e-procurement systems and industry consortia as suppliersMovement from simple transactions for spot purchasing to longer-term contractual relationships involving both direct and indirect goodsSlide 12-*Copyright © 2011 Pearson Education, Inc.Net Marketplace TrendsFigure 12.14, Page 792Slide 12-*Copyright © 2011 Pearson Education, Inc.Private Industrial NetworksPrivate trading exchanges (PTXs)Web-enabled networks for coordination of trans-organizational business processes (collaborative commerce)Direct descendant of EDI; closely tied to ERP systemsTypically involve manufacturing and support industriesTypically center around single, very large manufacturing firm that sponsors networkRange in scope from single firm to entire industryExample: Procter & GambleSlide 12-*Copyright © 2011 Pearson Education, Inc.Procter & Gamble’s Private Industrial NetworkFigure 12.15, Page 794Slide 12-*Copyright © 2011 Pearson Education, Inc.Characteristics of Private Industrial NetworksObjectives include:Efficient purchasing and selling industry-wideIndustry-wide resource planning to supplement enterprise-wide resource planningIncreasing supply chain visibilityCloser buyer-supplier relationshipsGlobal scale operations Reducing industry risk by preventing imbalances of supply and demandFocus on continuous business process coordinationTypically focus on single sponsoring company that “owns” the networkSlide 12-*Copyright © 2011 Pearson Education, Inc.Insight on BusinessWal-Mart Develops a Private Industrial NetworkClass DiscussionWhat is Wal-Mart’s Retail Link system and how has it changed since the early 1990s?Why is Wal-Mart still using EDI-based systems?Why won’t Wal-Mart join in an industry-backed system?Could Wal-Mart’s plan to allow suppliers to directly sell online to consumers be a threat to Amazon?Slide 12-*Copyright © 2011 Pearson Education, Inc.Private Industrial Networks and Collaborative CommerceForms of collaboration:Collaborative resource planning, forecasting, and replenishment (CPFR): Working with network members to forecast demand, develop production plans, and coordinate shipping, warehousing and stocking activities to ensure that retail and wholesale shelf space is replenished with just the right amount of goodsDemand chain visibilityMarketing coordination and product designCan ensure products fulfill claims of marketingFeedback enables closed loop marketingSlide 12-*Copyright © 2011 Pearson Education, Inc.Pieces of the Collaborative Commerce PuzzleFigure 12.16, Page 798Slide 12-*Copyright © 2011 Pearson Education, Inc.Implementation BarriersConcerns about sharing of proprietary, sensitive dataIntegration of private industrial networks into existing ERP systems and EDI networks difficult, expensiveRequires change in mindset and behavior of employees and suppliersAll participants lose some independenceSlide 12-*Copyright © 2011 Pearson Education, Inc.Industry-Wide Private Industrial NetworksSuccessful single firm networks adopted by entire industryP&G system sold to IBM, re-sold to entire consumer products industry in U.S.ISYNC: Manufacturers in alcohol and beverage, automotive, entertainment, grocery, healthcare, office supplies industriesAgentrics: Founded by world’s largest retailers; focuses on auctions, services for retail industrySlide 12-*Copyright © 2011 Pearson Education, Inc.An Industry-Wide Private Industrial NetworkFigure 12.17, Page 800Slide 12-*Copyright © 2011 Pearson Education, Inc.Long-Term Dynamics of Private Industrial NetworksAs large firms become more accustomed to working closely with both supply chain partners and distributors, they will seek to push the boundaries of their networks to extend across the industry as a whole, to other industries, and to elaborate new roles for themselves and othersSlide 12-*Copyright © 2011 Pearson Education, Inc.All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice HallCopyright © 2011 Pearson Education, Inc.