Third dimension of E-commerce impact on supply chain integration-electronic workflow collaboration

Workflow collaboration

Internet allows enterprises to further enhance their collaboration through coordination, integration, and even automatic control of key processes. Work Process coordination includes procurement, order execution, engineering changes, optimal design, financial transactions and other activities. The result is a more effective cost, faster speed, more reliable and less incorrect supply chain operation. Below, we provide a lot of cases about how different companies can become leaders in workflow adjustment activities in these or other fields.

Procurement

A typical manufacturing enterprise needs to purchase thousands of products from numerous manufacturers. The Internet helps them manage complex procurement processes. Numerous enterprises, including Arba and performanceone, provide Web-based enterprise procurement solutions that allow buyers to maintain real-time contact with trading groups on the Internet. At the same time, they implement automatic operations from the need to the internal procurement process of the order.

By automatically controlling the entire supply chain of indirect goods and services, these solutions reduce the operating costs of enterprises and improve operational efficiency. In fact, most market transactions, such as covisint in the automotive industry, Exostar in the aerospace industry, coverge and e2open in the electronics industry, transora in the food industry, e-procurement solutions are provided for their supply chain members.

Enterprises are increasingly relying on scientific supply software to make time and quantity decisions during the procurement process. For example, longs is a pharmaceutical retail chain enterprise that uses uninterrupted solutions to effectively manage order and supply processes in their distribution centers and stores. This makes the inventory turnover of enterprises significantly lower than that of competing enterprises at the same level of enterprise strength. Longs's supply chain was awarded the "efficient drug demand chain" title.

Order processing and capital flow

Slowly, a Silicon Valley startup creates an Internet-based service that helps operators in the food service industry (such as restaurants) distributors and manufacturers can easily process orders, adjust rebates and discounts, and other financial transactions. Its task is to develop easy-to-use services that reduce costs and provide valuable information to all members of the food service supply chain. On the web, the solution replaces traditional time-consuming and error-prone purchase systems with a secure and user-friendly client program. In addition, the web site functions as an information center, which closely links buyers and suppliers in the food service market.

New product procurement coordination

The resources required for new products can be a major obstacle to the favorable launch of new products. With the Internet, enterprises can process complex procurement tasks in hours rather than days, such as Part list management, quotation, decision making, classification, order change, and order determination. Internet also brings enterprises closer to a larger supply base, ensuring reliable supply and reserve resources. The timeliness of supplier selection, Order Quotation and acceptance, purchase decision-making, and enterprise resource planning system integration is particularly important and valuable in the new product launch process.

Solectron, a leading contract manufacturer and two unprecedented winners of the United States malcombe Blair gold National Quality Award, uses digital buyer (Internet-based procurement software applications, provided by the digital market, is a part of agile software), so that multiple suppliers can get the price and valid price at the same time. In its aviation warehouse with digital buyer, 5/6 of suppliers can respond to 55 vendors who need to make a quotation within a short 4 hours. In the past two days, the company received a total of 156 quotations, which greatly improved the traditional method.

The last major benefit is that it greatly reduces the cycle of the new product launch process for customers who support Solectron.

Engineering and product changes

As product lifecycles become increasingly short, management product upgrades-from one product version to another-are now common challenges faced by many high-tech companies. Incorrect management may cause the company to face the huge loss of market share. Therefore, the process of product upgrading has become a time when the company is vulnerable to attacks. The main risk is the time required to prepare all new parts for product upgrade. Engineering changes may lead to the need for new suppliers, new materials, or new essential conditions for upgrading. In a rapidly changing market environment, companies such as Dell, pairgain, WebTV, and flextroopers all use agile Internet-based solutions to streamline engineering changes. Product changes-updates, improvements, and patches for different product versions-are also common in the high-tech industry. These changes may be caused by changes in part costs, product improvements, process modifications, quality feedback, material shortage, and outdated products. Product changes include collaboration between design engineers, procurement, suppliers, manufacturing and process engineers, contract manufacturers, service support, and product management. Here, we emphasize the important role of Internet-based solutions, which provides an ideal platform for coordination and process of complex activities in product changes.