Electronic Business: Concepts, Methodologies, Tools, and Applications (4-Volumes) P22

Integrating E-Supply Networks munication and collaboration, and customer services (Blascovich & Goffre, 2003; Donovan n.d; Phan, 2003). 7KHVH³HEXVLQHVV´DSSOLFDWLRQVDUHDOUHDG\ being introduced into supply chain manage-ment–primarily as a collaborative use of Internet technology to enable integration of value and supply chains with key partners, by supporting business processes to improve speed, agility, real-time control, and customer satisfaction (Jelassi & Leenen, 2003). This is done largely through the use of computer and communication networks to transfer information electronically. Porter (2001) argues that the main advantages to an organisation LVKRZHEXVLQHVVLVGHSOR\HGWREHQH¿WIURPWKH advantages of Internet technology, rather than whether it is deployed. There is consensus amongst academics and practitioners that the success of an e-business enabled supply chain depends on two major factors: customer facing processes, followed by internal (operations) processes, supplier-facing processes, DQG¿QDOO\WRWDOFKDLQLQWHJUDWLRQ7KLVYLVLRQLV supported by other academics and practitioners +DQG¿HOGHWDO3RLUHUQGZKRVHHWKH supply chain of the near future as a synchronised ÀRZRIPDWHULDOVDQGLQIRUPDWLRQWKURXJKDIXOO\ networked virtual business. This incorporates all the companies in the supply chain where not only are internal processes linked with customers and suppliers, but the whole value chain would be networked end-to-end, managed through creat-ing value, and all stakeholders are in a win-win position. Modularisation is another trend that supply chains are experiencing where there is ³YDOXHVKLIWLQJ´DVV\VWHPVDUHEHLQJLQWHJUDWHG into smaller subsystems that can function alone or as a part of the network (Doran, 2003). Ke-hoe et al. (2001b) suggest the need for a supply chain resource planning approach where Internet technologies will enable supply chain partners • Collaboration between partners (Norris, Hurley, Hartley, Dunleavy, & Balls, 2000) and integration of supply chains through linking information systems (Cigolini, Cozzi, & Perona, 2004; Zank & Vokurka (2003), which is also seen as a major source of competitive advantage; • Information visibility (Garcia-Dastugue & Lambert 2003; Kehoe et al., 1998) includ-ing the ability to share accurate data and information from a wide range of operating areas across the supply network (Lancioni, Smith, & Oliva, 2000). 6XSSO\FKDLQVDUHFXUUHQWO\LQDVWDWHRIÀX[ to dynamically view and manage both demand and capacity data to create supply Webs. There is however little empirical research into the type and degree of integration that is taking place and how this can be measured in order to evaluate the LPSDFWRQLQIRUPDWLRQÀRZVDQGUHODWLRQVKLSV between and within supply network partners. The Importance of Information Flows One of the critical foundations of supply networks LVLQIRUPDWLRQÀRZV7KLVLVHYHQPRUHFULWLFDO in integrated networks where physical material supply chains are being replaced by a network of information servers distributed across organisa- where they must be able to manage the complex-LW\RIVWDNHKROGHUVDQGÀRZVRILQIRUPDWLRQDQG materials throughout, while still maintain their tions. Gadde et al. (2001) see the exchange of LQIRUPDWLRQSOD\LQJDVLJQL¿FDQWUROHLQFUHDWLQJ QHWZRUN HI¿FLHQFLHV ZKHUH HI¿FLHQW LQIRUPD- ³OHDJLOH´RSWLPLVHGGHVLJQV1D\ORU1DLP WLRQÀRZVDUHSUHUHTXLVLWHVIRUFRRUGLQDWLRQRI Berry, 1999). Croom (2001, 2005) has suggested the existence of a staged evolutionary process in the adoption of supply chain strategies in relation to e-business systems, beginning with activities in a network and for the exchange of information needed for resource development. 1RWRQO\HI¿FLHQWÀRZVRILQIRUPDWLRQEXWDOVR ³LQIRUPDWLRQHQULFKHG´VXSSO\FKDLQVZKHUHWKH 144 Integrating E-Supply Networks information systems are carefully engineered to PDWFKWKHVSHFL¿FVXSSO\FKDLQUHTXLUHPHQWV For example, in an information enriched supply chain, all stakeholders receive marketplace data directly increasing transparency, reducing distor-WLRQDQGDYRLGLQJGRXEOHJXHVVLQJ³:KHUHDV information enriched concept is highly desirable in lean supply, it is obligatory in the achievement of agile supply. It is only when effective market-place feedback is available that the next deliveries can be pulled from the supplier” (Mason-Jones & Towill, 2000, p. 55). The more accurate and WLPHO\WKHLQIRUPDWLRQÀRZWKHPRUHUHVSRQVLYH companies are to changes in demand (Wallace et al., 2006). Also direct knowledge of end demand through the supply chain is a way to reduce both inventory levels and the bullwhip effect (Cigolini et al., 2004; Wallace et al., 2006) However an exploration of the information ÀRZVWKDWOLQNDOOWKHVXSSO\FKDLQPHPEHUV±7LHU 1,2, 3 suppliers as well as the manufacturer, customer, and consumer/end-consumer–have not been fully researched and needs further investiga-tion (Garcia-Dastugue et al., 2003). Integration, Technology Infrastructures, and Supply Chains Many current organisational supply chains are en-trenched with manual processes and disconnected enterprise systems. Both Forrester Research and $EHUGHHQ*URXSIRXQGQRVLJQL¿FDQWLQWHJUDWLRQV between manufacturers and their suppliers’ and customers’ enterprise systems with the majority being driven by manual, spreadsheet-intensive, only partially automated processes largely de-pendent upon different software systems within their own companies (Wailgum, 2006). Integrated ,7 LQIUDVWUXFWXUHV HQDEOH ¿UPV WR GHYHORS D higher-order capability of supply chain process LQWHJUDWLRQ 7KLV FDSDELOLW\ ³HQDEOHV ¿UPV WR XQEXQGOHLQIRUPDWLRQÀRZVIURPSK\VLFDOÀRZV and to share information with their supply chain partners to create information-based approaches for superior demand planning, for the staging and movement of physical products, and for stream-OLQLQJYROXPLQRXVDQGFRPSOH[¿QDQFLDOZRUN processes” (Rai, Patnayakuni, & Patnayakuni, 2006, p. 227). Currently there is no universally accepted and widely implemented standardisation of technological architecture and applications across supply networks: for example the use of XML, middleware, Internet technology, the role of e-marketplaces and electronic auctions (Tassabehji et al., 2006a,b; Wallace et al., 2006). If the technology is to be fully exploited, there is a need for standardisation and developing Internet HQDEOHG³FRPPRQV\VWHPVLQIUDVWUXFWXUH´.HKRH et al., 2001a) to remove the problem of systems integration. DISCUSSION From the literature review, it can be ascertained that the main gaps in the research are a typology of e-business as it relates to supply networks, a deeper understanding of what integration is, its linkage with e-business, and its impact on supply networks, and a wider examination of LQIRUPDWLRQÀRZVWKURXJKWKHVXSSO\QHWZRUN in order to classify information according to a set of criteria, which will make it better support the needs and requirements of all the members in the supply network. An ideal test bed for this kind of research is the process industry. The process industry sector is extremely important and one that is estimated to grow at an average of around 4% per annum until 2010 (staff 2003) based on the projections of de-mand from process industry products and services worldwide. Pharmaceuticals is estimated to be the fasted growing process industry with the trend in highly industrialised countries towards more SURGXFWLYHPRUHHI¿FLHQWPRUHÀH[LEOHSODQWV which increase availability and environmental sustainability but are less resource intensive. As such, supply chain management and the Internet 145 Integrating E-Supply Networks based tools that facilitate this management is a critical part of these strategies. Towards a Standardised Approach to Integrated Supply Chains: Recommendations 7KHLVVXHVSUHYLRXVO\LGHQWL¿HGFDQEHGLYLGHG into three major parts. These are not mutually exclusive and there is a strong degree of conceptual overlap where information for all three stages can be sought at one interaction with stakeholders. Stage 1: Develop a Typology of E-Business Technology and Applications Infrastructure in Support of Information Flow in Supply Chains The internet has improved inter-organisational information systems’ capability and is being adopted as a routine platform for information systems development, with Web services, wireless applications, and advanced software applications all being used to facilitate supply chain col-laboration (Ho & Lin, 2004; Kehoe et al., 2001a; Mondragon, Lyons, Michaelides, & Kehoe, 2006). +RZHYHUWKHUHLVQRH[DFWGH¿QLWLRQRI,QWHUQHW based commerce (Soliman & Youssef 2003). 7KXVWKHUHLVDQHHGWRLGHQWLI\³HEXVLQHVV´ technology and how it is used in the organisation’s business supply and value processes including the use of electronic marketplaces and electronic auctions. The information will then be analysed WRGHYHORSDW\SRORJ\RI³HEXVLQHVV´DFFRUGLQJ to the technology and applications used within the supply chain. This can eventually be used as a benchmarking tool and bring standardisation to the area. Figure 1 presents a taxonomy of relevant hardware and software, and their application in an e-supply network that we posit should be standardised. E-commerce is currently seen as a technol-RJ\¿WUDWKHUWKDQDUHODWLRQVKLSWRROEXWWKLVZLOO change (Ruppel, 2006). In the future, collabora- tive product commerce (CPC), a set of tools that allows companies to manage product informa-tion and share it with suppliers and partners through the Web, is expected to co-ordinate and control virtually all supply, manufacturing and customer-relationship processes supported by an e-based infrastructure backbone (Mondragon et al., 2006). Thus, there is a need to establish this com-mon e-based infrastructure backbone to ensure interoperability and standardisation to support LQIRUPDWLRQÀRZV6ROLPDQHWDO0RQ-dragon et al. 2006). There are already attempts to develop standardised Web-based platforms. For instance, the Web Services Interoperability Organisation (WS-I) which is a consortium of the top companies in the industry such as HP, Microsoft, IBM, ORACLE, and Intel, aims to promote interoperability among Web services based on providing Web services developers ZLWKFRPPRQLQGXVWU\DFFHSWHGGH¿QLWLRQVDQG related extendible mark-up language standards support. This however is voluntary and is still in the early stages of development. Other industry standards like operating frequencies for RFIDs or UDDI (universal description, discovery, and integration) platform independent business reg-istries for Web services are needed to ensure the widespread utilisation of these technologies (Mondragon et al., 2006). In the standardisation process, there is also a need to incorporate other business related factors in the application. Mondragon et al. (2006), look-LQJVSHFL¿FDOO\DWWKHDXWRPRWLYHPDQXIDFWXULQJ sector, highlight the importance and reliance of sophisticated business models, such as supplier parks and full-service-vehicle supply, on the use RI:HEEDVHGLQIRUPDWLRQV\VWHPVWRIXO¿OWKH build-to-order strategy. 6KDUL¿HWDOEHOLHYHWKDWFODVVL¿FDWLRQ of e-marketplaces, which are sales and purchasing operations conducted over a common e-enabled platform, are critical to the management of their application and adoption. They use criteria such 146 Integrating E-Supply Networks Figure 1. Standardising hardware and software in an E-supply network Hardware & Software •Barcodes •Integration platform networks (such as XML) •RFID tags have antenna and chip containing an electronic product code that includes more information than a regular bar code (e.g. when and where the item was made, components source, time of expiry etc). •Wireless devices (e.g.PDA) •Neural Technology •Grid Technology •Security infrastructure (e.g. PKI) •Global Information Systems •E-mail •Workflow systems and tools (use set of software programmes that automate almost any information processing e.g. document management) •Groupware and other collaborative tools (VOIP web conferencing) •Internet enabled EDI •ERP •Vendor Managed Inventory (VMI) •Collaborative Planning forecasting and replenishment (CPFR) •Advanced planning and scheduling (APS) •Adaptive Inventory Management •E-marketplaces Application in the Supply Chain/Network •E-procurement: requisitioning; sourcing; contracting; ordering; payment •SC monitoring and control (use of RFID) •Inventory management (wireless devices to enter inventory item counts; XML infrastructure) •Collaborative planning (sharing info via the net; dynamic data exchange; B2B workflows across multiple enterprises over the net •E-logistics (spot buying of trucking capacity (internet based freight auctions) •Collaborative product development •Business Models •Business Strategies and Objectives as ownership/structure, product/market type and required functionality for e-marketplace FODVVL¿FDWLRQ In a study of three supply chain management technologies (group decision support systems, EDI, and the Internet for electronic marketing (e-commerce)), each was found to improve infor-PDWLRQÀRZVDORQJWKHVXSSO\FKDLQWKHPDMRU criteria for success was the perceived needs of the users with respect to the implementation of the respective technology (Ruppel, 2006). Thus managers cannot expect to be able to implement all SCM technologies/tools in the same manner, as different factors affect the adoption and use of different technologies. From this, the typology and infrastructure we recommend needs to incorporate factors related to user needs such as degree of trust, cost, secu-rity, business strategies, objectives and business models. In the e-platform that is recommended in Figure 1, we have incorporated the already rapid growth of demand of online purchasing software from suppliers, and included the software that is and will be required to move beyond e-commerce and achieve e-supply networks. The importance of tools enabling sales and operational planning, lean operations, and VMI and CPFR has already EHHQLGHQWL¿HGDVEHLQJFULWLFDOWRWKHVXFFHVVRI e-supply networks and need to be a part of the technological infrastructure (Friscia et al., 2004). It is the tools plus the connectivity that is of criti-cal importance and these have been incorporated in our e-platform. Stage 2: Determine the Degree of Integration Between Supply Network Partners Although e-supply chain management is in its academic infancy, there are many well established software packages that have been implemented in business. AMR Research list 25 major global companies led by DELL, Nokia, and Procter and 147 Integrating E-Supply Networks Gamble (Friscia et al., 2004) that have achieved success with supply chains, not only by enhanc-LQJSURFHVVÀRZVEXWDOVRE\FUHDWLQJDSODWIRUP on which suppliers, producers, distributors, and retailers can coordinate a response to the demand signal from customers. These SCM tools require a high level of integration and organisations must match the operational needs of these tools to the JRDOVRIWKHEXVLQHVV)URPWKH¿UVWVWDJHZH can see that the technology has advanced exten-sively, but there is still much greater potential for its growth, development and maturity (Ruppel, 2006). With standardisation will come more and easier integration with the right partners. Soliman et al. (2003) present a model of Internet based e-commerce in manufacturing where they emphasise the need for integration with internal and external processes already in place in the organisation. This is a challenging process involving a major re-engineering exercise accompanied by resistance to change. There is a need to determine the strategic level RILQWHJUDWLRQRIV\VWHPVDQGLQIRUPDWLRQÀRZV and how effective they are in terms of achieving supply chain objectives. Evaluation of integra-tion would also be made at an operational level examining systems and network diagrams as well as access; control; and permissions listings. One of the ways in which the degree of integra-tion between supply network partners is to be determined, is to assess the importance of each respective partner in the process. There are already tools for sorecarding supplier portfolios that help manufacturers determine whether their suppliers are performing well on an individual basis (Hoch-man, 2007). This could be extended to include an assessment of the level of critical importance each supplier in the value chain/network. Developing such supply chain integration strategies for competitive advantage however requires a new organisational mindset. It will be a real challenge for successful supply chain play-ers to understand the dynamics of power of their own position and other players in their industry enough, to be able to develop an open culture that will enable integration and close interaction with other supply chain partners. This kind of partnering, if achieved, can bring about mutual EHQH¿WVDQGLQWURGXFHSHUIRUPDQFHPHDVXUHV ZKLFKUHLQIRUFHFROODERUDWLRQDQG¿QGQRYHOZD\V of integrating information systems with other supply partners. Stage 3: Examine Information Nodes Across the Supply Network and Identify Criteria for Classifying Information Flows ,WLVZLGHO\DFNQRZOHGJHGWKDWPDQDJLQJWKHÀRZ of information within and between organisations ZLOOOHDGWRHI¿FLHQFLHVLQRUJDQLVDWLRQDOSUR-cesses (Krovi, Chandra, & Rajagopalan, 2003). The methodological approach to this part of the research is based on systems thinking, with a SURFHVV ÀRZ DQDO\VLV RI LQIRUPDWLRQ SDVVLQJ though the e-business enabled supply chain us-LQJÀRZFKDUWV:LWKLQWKHVHFKDUWVZLOOEHWKH LGHQWL¿FDWLRQRILQIRUPDWLRQQRGHVZKHUHWKHYDOXH RIWKHQRGHLH³WKHHQWLW\RUJURXSRIHQWLWLHV capable of altering the properties of information ÀRZ´.URYLHWDOSLVGHWHUPLQHGE\ the information content, the importance to deci-sion making and the e-business infrastructure or technology infrastructure on which it relies. Tsaih and Lin (2006) identify two kinds of informa-tion processing infrastructures in a value chain: contact points where information is processed and the corresponding business task is carried out and information channels which carry the LQIRUPDWLRQÀRZ7KHLQIRUPDWLRQQRGHVWKXV can be divided into these two functional criteria. The role of the contact points and information channels also change dynamically where the information recipient could be both a decider and a communicator of information (Titus & Brochner, 2005). 7KHELGLUHFWLRQDOLQIRUPDWLRQÀRZVQHHGWR be analysed with the partner’s capacity to handle 148 ... - tailieumienphi.vn