Australian School of Business

School of Information Systems, Technology and Management

Australian School of Business
The University of New South Wales

2012-S2
INFS4885, 5885: E-Business
Elec Eng G024, Thurs 6-9 pm

Lecturer: Fouad Nagm

Week 4: B2B and SCM

B2B E-Commerce
Definition
Transactions between businesses conducted
electronically over the Internet, extranets,
intranets, or private networks; also known as
eB2B (electronic B2B) or just B2B.

E-Procurement
E-Procurement: The electronic acquisition of goods
and services for organizations via the Internet, EDI,
etc.
E-Procurement may help to overcome difficulties in
traditional procurement

E-Procurement
E-Procurement (by businesses)
E-Tendering (by governments)

Request for Quote (RFQ): The invitation to

participate in a tendering (bidding) system

Reverse Auction (see next slide)

4-10

SCM (Supply Chain

Management)

What Is a Supply
Chain?
A supply chain is a collection of companies and
processes moving a product:

from suppliers of raw materials

to suppliers of intermediate components
to final production

to the customer

Upstream supply chainflow from sources of

raw materials and components to company
Downstream supply chainflow from company
to end-consumers
Suppliers have their own supply chain

SCM: Supply Chain

Management

Source: Wieland & Wallenburg (201

Linear Supply
Chain

Supply Network

Supply Chain: Apple iPhone

Benefits and Problems SCM

Potential benefits
Process innovations
Just-In-Time Production (JIT)
Vendor-Managed Inventory (VMI)

Potential problems
Distorted information
Excessive inventories
Inaccurate capacity plans
Missed product schedules

Just-in-Time (JIT) Production

Keeping inventory is costly (storage, capital, missed production

schedules)

JIT optimizes ordering quantities

Parts and raw materials arrive when needed for production.
As orders arriver in smaller quantities (but at higher
frequency)investment in storage space and inventory is
minimized.

The approach was pioneered by Toyota

It is used extensively by computer manufacturers to avoid

component obsolescence (Moores law).
Example: Dell keeps only two hours of inventory in stock

JIT requires tight cooperation between all partners in the supply

network.

Vendor-Managed Inventory (VMI)

VMI is a business model in which suppliers manage the vendors inventory
based on pre-established service levels
Supplier monitors stock levels and sales data
VMI requires vendor (manufacturer, retailer) to share real-time data

Benefits
Cost savings
Minimized stock-out situations
Accurate forecasts
Reduced errors
Prioritized goods shipments

Supply Chain Visibility/Analytics

Supply chain visibilitythe ability to track products as they
move through the supply chain but also to foresee external events.

Supply chain analyticsthe use of key performance indicators to

monitor performance of the entire supply chain, including sourcing,
planning, production, and distribution.

Web Development
3 Key Factors When Designing A Website (video)