Characteristics of Order Fulfillment process
It is a primary process. It is specific for creating value in the company. It is an end end to process as it starts and ends with the customer. Example Volkswagen.
What is Business Collaboration?
It involves interorganizational integration that describes organizational, institutional and technical design of integration. It also involves two or more legally independent companies.
Stakeholders in BC
The stakeholders are the company, suppliers, customers, manufacturers, retailers.
Perspectives of BC
Business collaboration - It has strong focus on why do companies work together and what is the business rational behind it. And what kind of businesses work behind it.
IOS Interorganizational system - This interorganizational focuses on technical issues like exchanging formats. Also, it covers several organizations, mostly from technical point of view.
IOIS Interorganizational Information system - This is similar to IOS as mentioned but it also depends upon perspectives. This covers all the levels like technical, organizational, institutional. Also based on literature review for mostly interorganizational types.
B2B Integration Business to Business - It has strong focus on technical issue and little bit of organizational issue which came out in early 2000s. It involves in how business to business processes work.
Levels of of integration in BC
Institutional Integration- formal and informal agreements on the basis of making businesses.
Organizational Integration- Interorganizational integration which are highly process related. Connecting relevant business processes amongst each other.
Technical Integration - It is responsible for all the technical realizations of business processes, interorganizational interactions as well.
Five forces of competition
- Competition Rivalry
- Bargaining power of customers
- Bargaining power of suppliers
- Threat of substitute products/services
- Threat of new entrants
Five forces of competition
- Competition Rivalry
- Bargaining power of customers
- Bargaining power of suppliers
- Threat of substitute products/services
- Threat of new entrants
Supply chain
It is a network of connected and interdependent organizations. The interdependent organizations work mutually and cooperatively to manage, control and improve the flow of materials and information from suppliers to the end users.
3 Relationships/Types of Supply chain
- Direct Supply Chain- Supplier—-retailer/organization–customer kitchen segment / furniture industry
- Extended Supply Chain - S—S—R/O—C—C Multiple organizations are involved. Example companies provide wood to the manufacturers. Downstream type.
- Ultimate Supply Chain - It involves companies and other stakeholders. Financial provider or logistic supplier. Eg i will have a financial provider who will give credit in order to buy or help in insurance. then i will also have logistic supplier who will take care of the transports. Then market researcher who will help me with analyzing the market. IT provider to support the technical issues.
Flows in Supply Chain
- Materials/Product Flow - The direction is always one way which is downstream. It has to reach customers in the end who will pay for it and realizes the value of the organization along the supply chain. Will only be upstream when defect.
- Financial Flow - The end customers realize the value only after paying. Financial transactions take place. like payments, money transfer. example customers pay the retailers. retailers pay the manufacturer, logistics supplier and so on.
- Information Flow - This is a two way street. It is about sharing information alongside the supply chain, which includes information about shipment, purchase order, sales order, demands, deliveries and so on.
Types or Forms of B2B Integration
- One to One
- One to Many
- Many to Many
Challenges in Supply chain
- Customer demands
- Qualified workers
- Forecasting
- Rise of competition/competitors
- Getting correct information
SCM System and what are the five SCM.
It is a upstream and downstream process with suppliers and customers to deliver superior customer value at less cost within the supply chain.
- plan - align supply chain with business financial plan
- source - identify suppliers, manage inventories
- make - production, ensure quality
- deliver - select carriers, route shipments
- return - authorize, schedule receive returns
Benefits of SCM
- reduces risk and uncertainty of supply chain
- coordination of all parties and flow
- Improves profit
- helps in becoming more competitive
- Efficient and effective
