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? 1999 Andersen Consulting “Old World” versus “New World” Technology Innovations have enabled new SCM strategies. Within technology innovations, Internet has the most strategic and significant impacts on Supply Chain Management. Growth of Business to Business eCommerce Business to business eCommerce: Massive growth is forecasted Cisco currently 20% of business to business eCommerce Where is the growth going to come from? Who will secure the value? (existing or new multinationals?) Example: On-line Retail Electronics Sales Growth The impact of the Internet will span forward. It is not about just taking orders on the internet but rather about a new avenue for establishing relationships with suppliers, customers, channel partners, and other stakeholders. – Ed Matheny Levels of Awareness - Integration Levels of Awareness - Collaboration Levels of Awareness - Synchronization Web Based eERP Architectures New eERP Architectures: “Light” ERP Common Data Structures Integrated DSP Web based applet development for: eSupply Chain eCustomer eProcurement eInfrastructure ePerformance Management Rapid web based development lifecycles (20-30 days) Examples:Internet-Enabled Inventory Replenishment via a Zen Master * * The eCommerce of Supply Chain Management ‘New World’ ‘Old World’ Batched, time based planning systems Discrete companies/geographies Multiple supply chain processes Sequential, dependent planning (i.e.forecast, inv. Planning, DRP, MPS, MRP Data Integrity problems Knowledge as power Organisation split by geography Input driven decisions (not market oriented) Little sharing of demand information Poor integration of customers and suppliers Small changes require major rework Individual company standards Multiple company data/product codes Skill inflexibility at centre Tight integration of customers and suppliers Break down of barriers of time and space Process consistency in and across organisations Data integri
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