Chapter 6 E-Supply Chains, Collaborative Commerce, and Corporate Portals

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Turban
-

Electronic Commerce

2010

Instructor’s Manual


Copyright © 2010 Pearson Education, Inc.
,

Publishing as Prentice Hall

Chapter 6

E
-
Supply Chains, Collaborative Commerce, and Corporate
Portals


Learning Objectives


Upon completion of this chapter, you will be able to:

1.

Define the e
-
supply chain and describe its characteristics and components.

2.

List supply chain proble
ms and their causes.

3.

List solutions provided by e
-
commerce (EC) for supply chain problems.

4.

Describe RFID supply chain applications.

5.

Define c
-
commerce and list the major types.

6.

Describe collaborative planning and collaboration, planning, for
ecasting, and replenishi
ng
(CPFR) and list the benefits

of each.

7.

Discuss integration along the supply chain.

8.

Understand corporate portals and their types and roles.

9.

Describe e
-
collaboration tools such as workflow software and groupware.

10.

De
scribe Collaboration 2.0 technology and tools.


Content


Opening Case: Boeing’s Global Supply Chain for the Dreamliner 787

6.1

E
-
Supply Chains

6.2

Supply Chain Problems and Solutions

6.3

RFID as a Key Enabler in Supply Chain Management

6.4

Collaborativ
e Commerce

6.5

Collaborative Planning, CPFR, APS, and PLM

6.6

Supply Chain Integration

6.7

Corporate (Enterprise) Portals

6.8

Collaboration
-
Enabling Environments and Tools

Managerial Issues

Closing Case: How Wal
-
Mart Uses EC in Its Supply Chain


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2



Ans
wers to Section Review Questions


Section 6.1 Review Questions


1.

Define the e
-
supply chain and list its three major parts.


It is a

supply chain that is managed
electronically, usually using Web technologies

and has
three
major parts: upstream, internal,

and downstream
.



2.

Describe success factors of e
-
supply chain management.


These factors include the ability to see collaboration as an asset, information visibility,
speed/quality/customer service, and tight integration.


3.

List the eight processes o
f e
-
supply chains.


These include replenishment, e
-
procurement, monitoring, inventory management, collaborative
planning, collaborative design, e
-
logistics
,

and the use of B2B exchanges/supply webs.


4.

List the major e
-
supply chain management infrastructu
re
s and enabling tools.


These include extranets, intranets, corporate portals, workflow systems
,

and groupware.


5.

Describe a digital supply chain.

A supply chain that is managed electronically, usually with Web technologies.

6.

Describe visibility and

tracking along the supply chain.


Visibility and tracking are important so that there will not be any surprises related to order quantity
or delivery times.

Various systems and databases track production and distribution so that any
needed adjustments ca
n be made.


Section 6.2 Review Questions


1.

Describe some typical problems along the supply chain.


Some problems include missed deliveries/improper inventories and quality problems.


2.

Describe the reasons for supply chain
-
related problems.


There are s
everal potential reasons, but many center on lack of communication and trust.


3.

Describe the bullwhip effect.

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The bullwhip effect is when large fluctuations in inventories along the supply chain occur, resulting
from small fluctuations in demand for fin
ished products.


4.

Describe the benefits of information sharing along the supply chain.


The major benefit is an improvement in the overall functioning of the supply chain


better
communication provides more information for better planning.


5.

List
some

EC solutions to supply chain problems.


These solutions come in the areas of order taking, order fulfillment, payment, inventory planning
and collaborative commerce.


Section 6.3 Review Questions


1.

Describe how RFID can be used to improve supply chains.


RFID tags can be attached to products to more carefully monitor their location for inventory
purposes.


2.

Explain how RFID works in a supplier
-
retailer system.


Suppliers attach RFID tags so retailers can track shipment and receiving.


3.

Briefly expla
in the differences between active and passive RFID tags.


Active tags include an internal power supply while passive tags do not.



4.

In what circumstances would it be better to use passive RFID tags? And in what
circumstances might it be better to use
active RFID tags?



Passive tags are better in cost
-
sensitive, high volume setting
s

where scanning is easy.
Active tags are better in difficult to scan locations.


5.

What are some of the major limitations of RFID technology?




Cost of implementation



Limi
ted use by environment



Accuracy



Privacy



Lack of standards


6.

Describe RuBee and its capabilities.


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RuBee is a bidirectional, on
-
demand, peer
-
to
-
peer radiating transceiver protocol. RuBee has
several complimentary features that include:




Use of magnetic
waves



Longer battery life



Better locatiblity



Lower cost infrastructure




Section 6.4 Review Questions


1.

Define c
-
commerce.


The use of digital technologies that enable companies to collaboratively plan, design, develop,
manage
,

and research products, se
rvices
,

and innovative EC applications.


2.

List the major types of c
-
commerce.


These include joint design and forecasting.


3.

Describe some examples of c
-
commerce.


Some examples include communication/collaboration at RE/MAX, information sharing at Marr
iot
and supply chain visibility at Nygard.


4.

Define collaborative networks and distinguish them from traditional supply chain
collaboration.


The collaborative network allows partners at any point in the network to interact with each other
directly, bypa
ssing traditional partners. Interaction may occur among several manufacturers or
distributors, as well as with new players, such as software agents that act as aggregators, B2B
exchanges, hubs, or logistics providers.



5.

Define VMI and list its benefits
.


Vendor
-
managed inventory (VMI)


The practice of retailers making suppliers responsible for
determining when to order and how much to order. Benefits include less time spent on calculations
and more accurate order quantities.


6.

List some major barrie
rs to c
-
commerce.

These include technical limitations, security concerns, internal resistance
,

and lack of internal
skills.


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7.

How might collaboration support and improve industry supply chains?


It would provide more accurate information about needs and
trends which could stabilize the chain
and reduce flow times.



Section 6.5 Review Questions


1.

Define collaborative planning.


In
collaborative planning
, business partners

manufacturers, suppliers, distribution partners, and
other partners

all have real
-
time access to point
-
of
-
sale order information.


2.

Define CPFR and describe its advantages.


A project in which suppliers and retailers collaborate in their planning and demand forecasting to
optimize flow of materials along the supply chain. This proce
ss helps improve integration and
reduces costs and increases speed.


3.

Describe APS efforts.


Programs that use algorithms to identify optimal solutions to complex planning problems that are
bound by constraints.


4.

Describe PLM.


PLM is a business strat
egy that enables manufacturers to control and share product
-
related data as a
part of product design and development efforts.



Section 6.6 Review Questions


1.

Describe internal and external integration.


Internal integration is integrating systems that f
unction together within a business, whereas external
integration is the integration of systems from different firms.


2.

Explain the need to connect to an ERP system.


In many firms the ERP system is the core of logistics and planning and it contains a wea
lth of
valuable information.


3.

Describe the need for integrating standards and methodologies.


Without standards, integration becomes very complex, with each integration becoming its own
unique project.

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Section 6.
7

Review Questions


1.

What is a corpor
ate portal?


A corporate portal is a gateway for entering a corporate Web site, enabling communication,
collaboration and access to company information.


2.

List the types of corporate portals.


Portal types can include supplier/partner portals, customer p
ortals, employee portals,
executive/supervisor portals and mobile portals.


3.

List five applications of portals.


Some of the possible applications of corporate portals include: knowledge bases and learning tools,
business process support, collaboration a
nd project support, data access, and security applications.


4.

List the benefits of corporate portals.


These benefits include simple access/navigation, improved access to information, usability of
common applications
,

and the ability to use platform inde
pendent applications.


Section 6.8 Review Questions


1.

Define workflow systems and management.


The automation of workflows, so that documents, information, and tasks are passed from one
participant to the next in the steps of an organization’s business p
rocess.


2.

Explain the types of workflow management systems and benefits of such systems.


The types include collaborative workflow, production workflow
,

and administrative workflow.

Systems can have a number of benefits, including better process visibility
, decreased costs and
greater efficiency.


3.

List the major groupware tools.


See Exhibit 6.11.

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4.

Describe GDSSs and electronic meeting systems.


GDSSs (Group Decision Support Systems) and electronic meeting systems allow users to
collaborate and make d
ecisions regardless of their physical locations.


5.

Define virtual teams and virtual meetings and describe how they are supported.




Virtual
t
eam


a

group of employees using information and communications technologies to
collaborate from different work b
ases



Virtual meetings


o
nline meetings whose members are in different locations, even in
different countries


6.

Describe the various types of electronic teleconferencing, including Web
-
based
conferencing.


Teleconferencing can take place using telephone
technology, video, data (documents) or the Web.


7.

Describe VoIP, screen sharing, and collaborative workspace.




Voice
-
over
-
IP (VoIP)


c
ommunication systems that transmit voice calls over Internet
Protocol

based networks



Screen sharing


allows other rem
ote users to see one user’s computer desktop
;

w
hiteboards
are shared applications where a group can share a virtual diagramming system



Collaborative workspace


a
n
interconnected environment in which all the participants in
dispersed locations can access

and interact with each other just as inside a single entity


8.

Describe integrate
d

suites and their benefits.


Integrated suites combine several similar products together. They are generally less expensive,
easier to use and provide a larger number of f
eatures than individual products.


9.

Define virtual teams, mass collaboration, and unified communication.


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Virtual Team


a

group of employees using information and communications technologies
to collaborate from different work bases



Mass collaboration


a form of collective action that occurs when large numbers of people
work independently on a single project, often modular in its nature



Unified communication (UC)


Simplification of all forms of communication in the
enterprise


Answers to EC Applicatio
n Case Questions


EC Application Case 6.1: AIRBUS IMPROVES PRODUCTIVITY WITH RFID


1.

What are the drivers of the RFID project?


The company hopes to increase efficiency by tracking parts and materials.


2.

What information technologies were used in this project
?


Technologies included RFID cards, readers and software.


3.

What categories of people are supported by RFID?


The system supports both suppliers and those that work internally with inventory.


4.

How can RFID provide visibility to Boeing?


The system should a
llow them to better understand inventories and make better decisions.


5.

Go to the link provided in the case sources and watch the Webcast. It will provide you with
a virtual tour of Airbus’s supply chain. Report on how RFID provides real
-
time visibility in
the key processes.


Student perceptions of the video
wi
ll

vary.



EC Application Case 6.2: West Marine: A CPFR Success Story


1.

What were the major elements of West Marine’s CPFR success?


Some factors in its success were the thoroughness of the integrat
ion and planning of the IT systems
coupled with the close relationship with suppliers.

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2.

What were the benefits of the CPFR implementation for West Marine?


The system allows them to forecast accurately and better understand the supply chain. It also
a
llows them to more easily integrate new acquisitions.


EC Application Case 6.3: WIKIS, BLOGS, AND CHATS SUPPORT COLLABORATION

AT DRKW


1. What capabilities of the wiki are not available in regular e
-
mail?


It allows for easy group access and editing.


2. W
hy are so many tools

blogs, wikis, instant messaging, chat, and audio/videoconferencing

needed?


The company hopes to foster communication across its diverse workforce.


3. How does the wiki increase employee productivity? What types of waste does it reduc
e?


Employees can easily access information without
us
ing

their time to search, and an expert’s time to
explain.


4. What are some social, cultural, and ethical issues involved in the use of wikis for business
collaboration?


Many issues exist, but some in
clude transparency of information and control of editing.


Answers to Discussion Questions


1.

Define e
-
supply chain and discuss its importance in supporting organizational
performance.


An e
-
supply chain is a supply chain that is managed electronically, usua
lly with Web technologies.
It is more advanced than an IT enabled supply chain that may only use technology in certain points
of the chain, as opposed to the entire chain.

E
-
supply chains allow for more efficient processes and
expanded communication and c
ollaboration. In many cases they result in decreased delays,
increased information flow, better planning
,

and lower costs.



2.

Does a company’s supply chain include the movement of money, materials, and information
within the company? How are they interrela
ted?


A supply chain also includes internal movements. The value chain is a superset of the supply chain
that includes all functions that add value to the items in the chain. When external partners are
included, this comprises the extended value chain.

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3.

Discuss the relationship between
c
-
commerce and corporate portals
.


Corporate portals can be used as a method of collaborative commerce for employees, customers
and other stakeholders.


4.

Compare and contrast a commercial portal (such as Yahoo!) with a corpo
rate
portal.


Both Web sites provide a variety of information and a variety of types of potential learning and
interaction. An Internet portal such as Yahoo! is horizontal, providing a variety of different types
of information about various topics. A co
rporate portal is vertical, providing information only
about the company.


5. Discuss the major considerations that must be taken into account when implementing VMI.

The major consideration is the confidence in the vendor and the

vendor’s

ability to accura
tely
predict the customer

s need, and place that before their desire for sales.


6.

Discuss the difference between a portal, a marketplace, and an e
-
hub. Do you think that
there are any significant differences?


Student responses will vary. A portal is a
source for single
-
company information whereas a market
place is a multi
-
company source of commerce and a hub is a multi
-
company source of information.
They are significantly different entities.


7.

Discuss the contribution of Web
-
enabled ERP systems to e
ffective supply chain
management.


Student responses will vary. Web
-
enabled ERP systems have created numerous benefits including
greater understanding of the supply chain, improved monitoring, and better external cooperation.


8.

Explain the need for group
ware as a facilitator of collaboration.


Groupware allows different groups and individuals to freely collaborate and communicate. This is
the function groupware is designed for, and it simplifies the process and generally adds to the
richness of the comm
unication.


9.

Discuss the need for workflow systems as a companion to e
-
commerce.


Workflow systems allow for more efficient movement of orders, information
,

or goods.



10.

It is said that c
-
commerce signifies a move from a transaction focus to a relati
onship focus
among supply chain members. Discuss.


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Student responses will vary. By increasing communication, information flow and openness, c
-
commerce tends to view interactions as relationships instead of transactions.


11.

Discuss the need for virtual m
eetings.


Student responses will vary. These meetings allow for greater communication that may not have
existed due to the constraints of physical meetings.


12.

Discuss how CPFR can lead to more accurate forecasting and discuss how it can resolve
the bu
llwhip effect.


By increasing information flow and openness across the supply chain, CPFR allows all parties to
have access to the data used to make forecasts. Having more real data (and fewer estimates) allows
for more accurate forecasts and inventory le
vels.



13.

Describe the advantages of RFID over a regular bar code in light of supply chain
management.


RFID eliminates the need to scan barcodes, since movement along the supply chain is tracked by
actual location.


14.

Compare a collaborative hub wit
h a collaborative network.


A hub is a centralized location for collaboration while a network is the infrastructure and tools to
collaborate remotely.


15.


Enter mobileworldcongress.com and web20.telecomtv.com. List and discuss three mobile
communicatio
n
-
related issues of current interest.


Student responses will vary.






Internet Exercises

(Note: URLs may change over time; please check the Internet Exercises on the Turban Web
site for possible updates:
www
.prenhall.com/turban
.)



1.

Enter
ca.com/products

and register. Then take the Clever Path Portal Test Drive. (Flash Player
from Macromedia is required.) Then enter
ibm.com

and

bea.com
. Prepare a list of the major
products available for building corporate por
tals.

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Student reports will vary.


2.

Enter
bea.com
. Find the white papers about corporate portals and their justification.
Prepare a report based on your findings.


Student reports will vary.



3.

Enter
doublediamondsoftware.com/product_overview.htm.
Ide
ntify all potential B2B
applications and prepare a report about them.


Student reports will vary.


4.

Investigate the status of CPFR. Start at vics.org/committees/cpfr,
google.com
, and
yahoo.com
. Also enter
supply
-
chain.org

and find information about CPFR
.

Write a report
on the status of CPFR.


Student reports will vary.


5.

Enter sap.com and bea.com, and find the key capabilities of their enterprise portals. List the
benefits of using five of the capabilities of portals.

Student reports will vary.


6.

Enter
noki
a.com, mdsi.com
,

and
symbolic.com
.

Identify the B2E products you find at these
sites. Prepare a list of the different products.


Student reports will vary.


7.

Enter
i2.com

and review its products. Explain how some of the products facilitate
collaboration.


T
his firm offers software products to assist in supply chain collaboration in the following areas:



Fulfillment Optimization



Logistics Optimization



Production Optimization



Revenue and Profit Optimization



Spend Optimization


8.

Enter
collaborate.com

and read ab
out recent issues related to collaboration. Prepare a
report.


Student reports will vary.


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9.

Enter
kolabora.com or mindjet.com. Find out how collaboration is done. Summarize the
benefits of this site to the participants.


Student reports will vary.


10.

Enter vi
gnette.com or cybozu.com and read the company vision for Collaborative
Commerce. Then view the demo. Explain in a report how the company facilitates c
-

commerce.


Student reports will vary.


11.

Enter
lotus.com

and find their collaboration
-
support products.
How do these products
support groups?


Lotus is a division of IBM that offers many software solutions including communication and
collaboration software. The current product offering (listed below) offers several methods of group
work with the ability to
store and cross
-
reference communication using an IBM database solution.



Lotus Workplace Messaging



Lotus Notes



Lotus Domino



Lotus Domino Express



Lotus Domino Web Access



Lotus Domino Access for Microsoft Outlook



Lotus Domino Designer



Lotus Enterprise Integra
tion



Lotus Mobile & Wireless Solutions



Lotus Domino Unified Communication Services



Lotus Domino WebMail



12.

Enter
supplyworks.com

and
worldchain.com
. Examine the functionalities provided for
supply chain improvements (the inventory management aspects).


Worl
dchain.com offers a variety of software and systems to automate supply chains, display and
order inventory
,

and add communication.


13.

Enter
3M.com

and
smarttech.com
. Find information about their whiteboards. Compare the
products.


Both sites appear to have e
lectronic whiteboards that capture notes and export them as images or
text.


3M's product is at
http://www.3m.com/meetings/product_catalog/digitalwalldisplay/dwd_spe
cs.jhtml
, while

Smart
tech
's

is at
http://www.

smarttech.com

.


14.

Enter electronicsupplychain.org, then click “Resources.” Find new material on supply chain
automation.

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Student reports will vary.



15.

Enter epiqtech.com
and find information about products related to this chapter.


Student reports will vary.



16.

Enter future
-
store.org and find the progress on the use of RFID and other tools in supply
chain improvements in retailing.


Student reports will vary.


17.

Ent
er pocketvideo.com and microsoft.com/windowsmobile/en
-
us/devices/default.mspx.

Examine the demos. List the capabilities.


Student reports will vary.


18.

Learn about Lotus Sametime Standard by visiting www
-
01.ibm.com/software/lotus/sametime. Click “View

the Screenshots.”Prepare a report of the
software’s capabilities that support real
-
time collaboration.


Student reports will vary.


19.

Enter campfirenow.com. Explore its capabilities and write a report.


Student reports will vary.



Team Assignments and

Role Playing



1.

Have each team download a free copy of Groove from
groove.net
. Install the software on the
members’ PCs and arrange collaborative sessions. What can the free software do for you?
What are its limitations?


Student reports will vary.


2.

Each t
eam is assigned to an organization. The team members will attempt to identify several
supply chains, their components, and the partners involved. Draw the chains and show which
parts can be treated as e
-
supply chain parts.


Student reports will vary.


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3.

Each

team is assigned to a major vendor of corporate portals, such as BEA, TIBCO, IBM or
Oracle. Each team will check the capabilities of the corporate portal tools and try to persuade
the class that its product is superior.


Student reports will vary.


4.

Ea
ch team is assigned to a major collaboration suite (from Lotus, Microsoft, Oracle,
Cisco/WebEx, Google Apps, and so forth). Prepare a list of capabilities and present arguments for
the superiority of the suite.


Student reports will vary.


5.

Each team st
udies a vendor that supports mobile communication, messaging, and
collaboration (e.g., Microsoft, Sybase, Motorola, Nokia, Research
-
in
-
Motion). Prepare a report on
the capabilities of the major products.


Student reports will vary.


6. Address the followin
g topics in a class discussion:

a. Describe how the advent of the Internet in the late 1990s has affected supply chain
management. Include in your answer the contribution of the Internet to the following
aspects and challenges:



Globalization



Outsourcing, including business process outsourcing



Increasingly demanding customers



Diminishing product life cycles

b. Discuss the proposition that competition in contemporary business is best described and
conceptualized as competit
ion between industry supply chains rather than between
individual corporations.

c. Discuss the importance of taking a holistic view of supply chain management rather than
simply approaching supply chain management from a business
-
process and IT viewpoint.

d. Is Collaboration 2.0 useful?

e. What is the strategic value of mobile collaboration?


Student responses will vary.


Answers to End
-
of
-
Chapter Real
-
World Case Questions: HOW WAL
-
MART
USES EC IN ITS SUPPLY CHAIN


1.

Why is Wal
-
Mart concentrating on supply ch
ain projects?


The company feels this is an area of strength and that efficiencies here can lead to greater
profitability.


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2.

Wal
-
Mart mandates RFID tags from all its large suppliers. Why are some suppliers not in
compliance?


Some suppliers had difficult
y

m
odernizing their own operation to accommodate this.


3.

Investigate the options for international customers on the Wal
-
Mart Web site.


Student experiences will vary based on when the search was conducted.


4.

Compare walmart.com with target.com, costco.com, kmar
t.com, and other direct
competitors. Write a report.


Student perceptions will vary.


5.

Envision how transaction processing systems (TPSs) are used in Wal
-
Mart stores. Go to
Wal
-
Mart and pay with a check. How has EC improved the old way of paying with check
s?


Student reports will vary.