E-SUPPLY CHAIN

FUSION
Presentation for MBA 1st Year

CONTENT

E-SUPPLY CHAIN FUSION

STAGES OF SUPPLY CHAIN FUSION

MANAGEMENT ISSUES IN E-SUPPLY CHAIN

FUSION

E-SUPPLY CHAIN FUSION

Process of e-supply chain fusion involves

the migration from existing nonintegrated supply chain to more effective
integrated supply chain and thereby
creating a tightly woven supply chain.

4 STAGE OF SUPPLY CHAIN FUSION

Stage I - Information sharing: Wellestablished and effective communication
channel is required at the 1st stage. For
example, the consumers can interact
effectively with the entire enterprise
from a single store or Website.

Stage II Joint performance

measurement: Key challenges include
creating performance measurement and
developing a clear understanding of the
costs and benefits involved in supply
chain integration. Collaborative planning
processes are created in this stage.

Stage III Realignment of work: Through the

process of collaboration decision-making is
decentralized and work load is shared
among the enterprises.

Stage IV Redesigning products and

processes: Products and processes are
redesigned so that work becomes easier and
more efficient. A major challenge is to
include the entire supply chain in the
enterprise process reengineering efforts.

MANAGEMENT ISSUES IN ESUPPLY

CHAIN FUSION

1. Determining the right e-supply chain

structure: Need for cost-efficiency does not
permit to maintain a large inventory of
finished products for the customers. Market
demands may change and the price-structure
may also undergo changes. For this reason, it
is important to maintain the right kind of esupply chain structure to ensure right
product at the right time.

2. Enabling effective differentiation

capabilities: Organizations develop
strategies for competitive differentiation,
offering customers something unique that
the competition does not have.
Differentiation is in terms of products and
services and also in terms of performance
standard. Build-to order(BTO) business
models are used for this purpose.

3. Facilitating effective order-fulfillment

capabilities: Accurate order-fulfillment is
challenging and offers a great opportunity
for reducing costs and improving customer
service simultaneously. An integrated supply
chain is critical to order fulfillment.
Effective supply chain management
configures the chain to respond to order

4. Determining the right infrastructure

capabilities: Creation of a real-time supply
chain management infrastructure is a major
task for an organization. Planning, selection
and implementation of SCM solutions is
becoming more complex with the change of
technology and with the increase of the
number of business partners of a company.