Supply Chain Management

Last class we discussed a case with Proctor & Gamble having a problem with their production system. They were using a "push" system that moves product to customers. They were only forecasting what they thought people would want, and adding incentives to buy. This makes out for a very inefficient system, because they were ending up with a lot of back stock in their inventory, which in turn doesn't produce the profit that they need.

Their solution was to implement a supply chain management system provided by SAP. Supply Chain Management defined is management of a network of interconnected businesses (such as P&G and your local grocery store) involved in the provision of service and product packages required by end customers.

According to the Council of Supply Chain Management Professionals (CSCMP), supply chain management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management. It also includes the crucial components of coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In simpler words, supply chain management integrates supply and demand management within and across companies. More recently, the loosely coupled, self-organizing network of businesses that cooperate to provide product and service offerings has been called the Extended Enterprise.

So, as we learned, it is important for businesses to establish a business to business (B2B) network. If all businesses worked together towards a common goal, it simply makes things easier and more profitable. It's a win-win situation. I don't know why Proctor & Gamble did not start out with this method. I see this relationship work well at my work with some companies, but sometimes it is not implemented, and it creates an issue.

Electronics commerce (E-commerce) played an important role in their success as well. They are now receiving the information they need electronically from the retailers that they work with. The retailer gives them information on what's selling and what's not, so P&G can make the simple decision of what to make for their customers. I'll bet they were saying "I wish we would have thought of this earlier."

Electronic Commerce

Electronic commerce or eCommerce has become extremely popular in today's society. eCommerce is business that is conducted over the Internet using any of the applications that rely on the Internet such as email, instant messaging, shopping carts, web services, etc(info received). Whether you're purchasing a textbook for a course, downloading music for your ipod, or comparing the different tiles that would look nice in your kitchen, if it's done over the Internet, you're a customer! Electronic commerce can be between two businesses transmitting funds, goods, services, and/or data, or between data and a customer.

All age groups participate in eCommerce. Most elderly people purchase over the Internet due to disabilities that doesn't allow them to physically go out and purchase whatever they want. Buyers mainly want to compare products for the best price, quality, and/or appearance. Most stores place items on their website that's not sold in the actual store(which can be shipped to the store for you to pick it up). Many feel that shopping online is unsafe and unreliable. Many fear that their personal information(credit card info, social security number, address) will be seen. Researchers say eCommerce will eventually be the main source of shopping in the future.

I would like to say that I'm a proud customer of eCommerce. I purchase EVERYTHING over the Internet. I pay my bills over the Internet. This is not because I'm lazy and don't feel like going to the store, but as a college student, I'm busy 90% of the time and by the time I'm free, stores are closed or just about to close. I love shopping online because its faster and convenient. I do sometimes fear someone will get my information, which is why I frequently check my statements. The only thing I don't like about most stores is how they keep your information there. I feel like I should have to resubmit the information for security purposes. What if someone get my log in name and password? Then they're able to purchase what ever they want using my information.

Despite that little downfall of shopping online, I absolutely love shopping online! If you haven't done it, you SHOULD.!!!!

Anna's 3rd post

I'm really interested in the subject of e-commerce and have first hand experience shopping online. The internet has revolutionized trade in many areas including retail and entertainment.

Netflix is a great example of e-commerce. Netflix is a relatively new way to receive movies. I get two dvds at a time for a ridiculously cheap price paid monthly. I never go to video stores anymore. They can no longer compete with Netflix, which delivers at a great price with no late fees. This is just one example of online commerce replacing face to face trade.

Traveling has changed as a result of the internet as well. I cannot imagine taking road trips without sites like Google Maps and Map Quest. GPS is now available on phones making traveling by car extremely easy. I fly all the time, and it is so nice using the online site Orbitz. It is really simple finding flights to fit your schedule, and they can even call you to update delays or gate changes. It makes flying less stressful.

The most obvious examples of e-commerce are retail websites. Whether it's an auction site like Ebay or a store's site like Urban Outfitters' they are becoming more and more popular. In class we learned that e-commerce now accounts for 4% of retail purchases. This isn't a surprise at all considering the convenience.