Internet has a tremendous impact on how people communicate, shop, and work. This technology has also created changes in how companies can do business in the 21st century. One of the acts that are likely to see a dramatic change in the coming years is the supply chain management areas. By harnessing the power of the Internet, and supply chain management will continue to evolve in ways that will enable companies to change the way it manages inventory, place orders with suppliers, and the delivery of critical information with each other.
while I have found some of these techniques for years, or decades in the case of radio frequency identification tags, the Internet and harness these technologies and offers the possibility of transforming supply chain management. It means to improve supply chain management is also improving inventory control and increase profits.
in 01, missed its revenue target by Nike big dollars. He explained the lack of part of the supply chain automation project failed. "Some estimates are that new technologies can be deprived of more than $ 30 billion in surplus stocks" (Fonstad). The term e-commerce - as different from e-commerce - can be used to describe the Internet to speed up the adoption of the goal of supply chain integration (me) four emerging technologies and practices in the field of e-commerce will have a major impact on supply chain management.
Q virtual markets
o identity of the radio frequency cards (RFID)
Q coincided planning
Q Provider Performance Management
market places vIRTUAL
MetalJunction is owned by two of the largest steel producers in India, the virtual market. Tata Steel trading and sailing more than 5,000 tons of steel and steel in March 02. By March 03, the tonnage increased to 43,000 tons per month (Mills).
What is a virtual market and what are its applications in the industry? Virtual markets many names, such as electronic markets, the net market places, and electronic markets. These markets all have common characteristics.
Q rely on the Internet
Q buyers and sellers together without an intermediary
Q neutrality (all buyers and sellers are treated the same)
and provideo information about the vendors and products
in its basic form, the virtual market place brings together buyers and sellers through the Internet. At its highest level, the virtual market place gives the buyer and the supplier the opportunity to redesign the sales management process, improve forecasting and scheduling and renew its approach to going to market, shortening cycle in the system to cash, and enhance customer service (Steel24-7). Ideally, it concentrated virtual market places on a particular industry. Some notable examples are the steel and agricultural products, and auto parts. In addition to providing information on vendors and general information about their products, the virtual market may also provide product specifications, comparisons side by side, and technical papers, and market analysis. There
many challenges in establishing virtual market. The first of these problems is to determine necessary to use market tools, and provide a safe environment, pricing, payment, and fulfillment. For the market in an orderly fashion, you must select Internet protocols. The cost of technology to access and enter the market should not be prohibitive. It must have adequate security and privacy to ensure confidentiality of transactions. It must have documentation and permission of users from many organizations as possible. We must ensure private communication.
may be setpricing policies or swaps. A common example of barter, or sell auctions, eBay is E- consumer products. Payment procedures can be predetermined or arrangement between the buyer and the seller. Finally, it must be insured pursuant to orders. As in the case of traditional markets, but that failure to provide timely lead to the loss of the market power of companies and can ultimately lead to failure (McKnight).
The final issue of concern in virtual markets jurisdiction and rule of law. Virtual markets put its members in the global trading community. Since the electronic markets are a recent phenomenon, and determining the legal system is responsible for the settlement of disputes is an evolving process. The current legal reasoning puts jurisdiction in the locality of the market. In the virtual market, however, one must ask where the market actually is. While the Federal Trade Commission tried to extend its control over transactions on the Internet, it has not been a final decision on the jurisdiction of the places of electronic international markets.
labels Radio Frequency Identification
in November 03, Wal-Mart has been collected together 0 leading suppliers to declare that he needs to radio frequency identification cards (RFID) on shipping pallets and cases of goods. Wal-Mart set deadline of January 05 for the top 100 suppliers. It would had suppliers remaining until the beginning of 06 to meet the requirements (Celeoh).
basic RFID system has three components.
Q antenna
Q transceiver
Q bouquet (tag)
antenna activates the tag, read, and write data to it. When moving past RFID reader mark, and the information is transmitted to a host computer for processing. The most common RFID systems are passive and have their own power source, has a short-range transmitters, operating on low frequency, and has a low cost. While interacting been around since the recent technological changes in 1960 reduced cost and allowed the technology to be used in more applications.
common everyday use of RFID is an automatic reading of the football prepaid toll roads. RFID advantages are many-fold. For example, and react very fast, non-contact, does not require line of site, and can operate in a variety of weather conditions. In the above case, the benefits of RFID go to Wal-Mart, while the cost of liability of suppliers. Kara Romanov, an analyst at AMR Research, Inc., and is estimated to start operating for a supplier who ships 50 million containers annually costs will run between $ 13 million and $ 23 million. These costs include RFID tags and associated hardware and software (Celeoh).
SamSys techniques Richmond Hill, ON, and ThingMagic, LLC of Cambridge, MA are the leaders in the application of RFID for supply chain management. Sam is dedicated sys open system environment that would not limit a single RFID protocol or set of frequencies. This philosophy is based on a foundation of many sellers and readers that will work seamlessly together (SamSys).
ThingMagic was founded in 00 by five graduates of the Massachusetts Institute of Technology. Low-cost RFID systems have been developed. At present, ThingMagic on the development and marketing graceful protocol RFID tag readers (ThingMagic). In addition to Wal-Mart, Department of Defense (DOD) is a major player in the development of RFID deployment. The Ministry of Defense issued a new policy, which requires all suppliers to include RFID chips negative in each product separately, if possible, or at the level of cases or pallets by January 05. In February 04, hosted by the Ministry of Defence summit of its suppliers to discuss plans and interact with (Brorzma). In the words of Colin Cobain of Chief Technology Officer of Tesco: "The question is not going to react to change the way you do business and the question is whether it will be ready." (ThingMagic)
planning synchronized by supply. Series
"concurrent planning, in the form of collaborative forecasting and replenishment, production coordinator and inventory and the ability of the plans and the integration of information, and direct links to ERP systems, is one of the most exciting developments in the supply chain management in many industries" ( synchronous). It includes concurrent planning major steps (me).
o integration of information
coincided Q Planning
Q workflow coordination
new business models Q
first, and integration of information requires sharing information and transparency. Is the exchange of information between supply chain members. Information exchanged may include inventory levels, production schedules, and shipping schedules. The advantages include better job scheduling and reduce the bullwhip effect. "The impact indicates a lack of synchronization between supply chain members, and even a slight change in the ripples consumer sales back in the form of vibrations amplify the upstream, similar to the result of a flick of the whip handle" (Chase 335).
determines planning what should be done with the information that is shared synchronized. This could include a joint collaborative planning and design. The benefits of lower cost and improve service.
If synchronization is planning "what" is to be done with shared information, and coordination of work is "how" to do it. They include operations that can coordinate purchasing and engineering process and changes in the design, production planning. Advantages include early to market, and improve the services and efficiency gains. Concurrent planning can lead to new business models. Not only can this new business models re workflow definition, they can lead to changes in responsibility for different parts of the supply chain. Can redefine the supply chain together to create new products and lead to expansion in new markets (me).
planning and coincided with, it can not be achieved without linkage arbitrator of all companies in the supply chain. Communication channels must be well defined and must be the performance of each member of the chain control. Integrated supply chains must hold members responsible for their role in the process. As product life cycles are growing shorter and shorter, and effective synchronization of the supply chain is growing in importance. To make sure that the supply chain driven by consumer demand, and reduce the bullwhip effect, and concurrent planning is crucial (for me).
supplier performance management
As different organizations, supply chains become tightly intertwined, it becomes necessary to measure the performance of each member in the chain. Former Federal Reserve Chairman Alan Greenspan testified before Congress in February 01 that the companies were not able to anticipate the economic slowdown of the last recession, excessive inventories despite the large supply chain automation (Fonstad). Even using the latest technology, therefore, it may not guarantee that the supply chain works efficiently.
one way to answer the question of how the success of the supply chain works is the development of supplier performance cards. There are five steps in the development of effective performance card (Golovin).
Q agree on what is important and how to measure it
o use of incident reports on the Internet for communication problems when they occur
o participate in the ongoing supplier management
o measure to prevent instead of answering
o use web based software that all suppliers can take advantage of without expensive investments in software and training
it is important that the buyer and seller agree at the outset on what is important, and how it is measured. This is critical because once a decision, the supplier improve its work to certain standards. If it's just in time delivery is a priority, the supplier may focus on this aspect of the system at the expense of other factors. In addition, the criteria for measuring the performance of suppliers must be realistic and achievable.
then you should followactual performance against these standards constantly. Manufacturer and supplier should work together to develop standards that are consistent with the performance of the industry and product specifications. The use of incident reports on the web is important to trace problems when they occur. Should not be used only incident reports to track problems, but should be used to solve the problem in real time. It is also important to measure the time it takes the supplier to correct the problem.
ongoing supplier management, sometimes referred to as supplier of Engineering, and has become even more important as manufacturers use more of its operations outsourcing. A review of a 0-day cycle can be devastating when an innovative product manufacturing. "Innovative products and usually have a life cycle of only a few months" (Chase 337). A review of a 0-day cycle is about to bypass the competitive advantage of an innovative product may come. It should be an effective approach and continuous management of suppliers for specific periods and endurance. Then link this to the incident reports on the Internet that enables the alarm to ring when hardware products, delivering or outside the agreed tolerances.
should identify effective supplier performance card up to prevent problems rather than respond to them. The more I know that there is a problem solved low cost and the greater the opportunity to prevent it altogether. The best record the results of measuring not only the events after they have happened, and continuously monitor performance in real time. Use of automation is the key to achieving this. For example, the system that matches invoices with purchase orders catch pricing errors before they check and money the manufacturer is cutting out the door. The use of web-based software not only reduces the cost of integrating with the manufacturer's supplier, it speeds up the integration process. Enables web-based software also suppliers both large and small to participate in the supply chain.
and four other points listed above all depend on the ability of a manufacturer and supplier to participate in the planning, sourcing, quality control, and delivery of the product. Internet enables all members of the supply chain to collaborate and work together as a team. Finally, by making the performance of suppliers on the Internet, suppliers are able to participate in improving their own performance (Golovin).
conclusion
supply chain management is an interesting topic and complex. It goes to the core of new working methods in the 21st century. Almost universal availability of the Internet is an enabling technology for changes in how the supply chain management of the project. It also allows for Internet organizations to adopt new working practices and entering new markets. By harnessing the power of the Internet, and will supply chain management in the development continue regardless of the changes that are being implemented today.
waseBusiness logical result of e-commerce. E-business depends on the power of the Internet to speed up the integration of the supply chain growth. While e-business has had a tremendous impact on the supply chain management, it can also be adapted to each of the front-end and end its business operations in the back (me). Improve inventory control and increase profits, two of the benefits of improved supply chain management. As noted in the introduction, Nike missed targets for 01 earnings, partly due to the implementation of supply chain automation project fails. It also estimated to be more than $ 30 billion dollars in surplus stocks can be eliminated by improving supply chain management. This can not be real savings realized directly to the bottom line.
four new technologies and business practices that harness the power of the Internet is the virtual market places, tags radio frequency identification, planning simultaneous (RFID), and supplier performance management. It enables virtual markets buyers and sellers to work together 24/7 in effect create a store that never closes. Additional advantages of virtual markets are eliminating the middleman, and to obtain information on products and suppliers, market neutral and where it is to deal with all the buyers and sellers alike. Virtual markets give both buyers and sellers the opportunity to redesign its sales management process.
As noted above, RFID has been around since 1960, however, improvements in technology and Peel and interact with the Internet and sought this follow some way behind last limited in factories. The three components of the system are the RFID antenna transmission and reception, and a bouquet (tag).
planning of sync when applied across the supply chain consists of collaborative forecasting and replenishment, production coordinator, inventory, capacity planning, information integration and direct connectivity to ERP systems. The four main steps in simultaneous planning is the integration of information, synchronization of planning and coordination workflow, and provide an opportunity to develop new business models. The key to planning and simultaneous use of the Internet for the exchange of information. The benefits include better planning simultaneous scheduling of jobs and the reduction of the whip effect. Whip affect amplified oscillations upstream in the supply chain caused by the change in consumer sales. Concurrent planning also knows what to do with the information shared and how it will be done. As product life cycles are growing shorter, and the effective synchronization corporate rewards supply chain who seize the potential.
performance provider cards are a way to evaluate the members of the supply chain in the tangled organizations increasingly. Alan Greenspan also pointed out in 01, and many companies were not able to predict the last recession and continued excessive inventory although invested heavily in automating the supply chain. This statement underscores the need to develop the necessary tools to monitor the performance of companies up and down the supply chain. Five steps for the development and effective performance card and agree on what is important, and how it will be measured, and the use of incident reports on the Internet, and to participate in an ongoing supplier management, and measure to prevent problems, and the use of software on the Internet. To put these tools, it is essential that both the buyer and seller agree first on what is important, and how they will be measured. The flow of other steps first.
on the Internet has had a tremendous impact on the personal and professional lives to the business. On the commercial side, the Internet has brought new life to the existing technologies and offered companies the opportunity to participate in the global market. Harnessing the Internet through business cooperation and greater exchange of information up and down the supply chain has enabled. The Internet has made it possible for companies to improve supply chain through the way in which inventory management, place orders, and delivery of critical information with each other.
business mentioned
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Chase, Richard, Nicholas J. Okoellano, and F. Robert Jacobs. Operations Management for competitive advantage. 9 Ed. New York: McGraw-Hill / Irwin, 01.
Fonstad, Jennifer. "From the ground floor: How to inventory on demand management." Red herring. May 31 01.5 December 03.
Golovin, Jonathan. "Five Keys to Successful Supplier Scorecard." Vigilance, Inc. December 5 03.
me, Hau L., and Seungjin Whang. "E-business and supply chain integration." Stanford Management Forum global supply chain. November 01.22 November 03.
McKnight, George Lee, Diana Anius, and Ozlem Uzuner. Virtual markets in wireless networks: Overlooking policy obstacles. TPRC 30 Conference of Communication and Information Research, the Internet policy in October 02. Vienna, VA :. Policy Communications Research Conference
"hot mills on the Internet." Steel Business Briefing. July 1 3:22 November 03. SamSys. December 4 03.
Celeoh, Carol. "Wal-Mart suppliers shoulder the burden of timidity RFID effort." Computers. November 10, 03: 1+. Steel24-7. November 22 03.
"simultaneously planning across the supply chain." Stanford Management Forum global supply chain. January 27 1999. November 22 03.
ThingMagic. December 4 03.
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