Saturday, 9 August 2014

Chit Chat: Supply chain e-business scorecard

Revenue Opportunities

   Direct sales
§  Increased margin from eliminating intermediaries

§  Increased availability by aggregating information
§  Increased choice of delivery options
§  Shorter response time

§  Efficient funds transfer may improve cash flow

  Product information:
§  Flexibility on price and promotions
§  Faster time to market
§  Wider product portfolio offering

  Negotiating prices and contract terms:
§  Downward price pressure due to increase competition
§  Price and service customization

  Order placement and tracking:
§  Access at anytime from any place
Cost Opportunities
  Facility costs:
§  Processing costs: customer participation, smoothed capacity requirements
§  Site costs: eliminate intermediaries or retail and distribution sites

  Information sharing improves supply chain coordination:
§  Reduce bullwhip effect
§  Shared planning and forecasting

  Inventory costs:
§  Postponing product differentiation to after order placement
§  Reduce cycle stock (geographic centralization)
§  Reduce safety stock (statistical aggregation)

  Transportation costs:
§  Inbound
§  Outbound

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