Slide 6.

Chapter 6
Supply Chain Management

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.2

Learning Outcomes

• Identify the main elements of supply chain

management and their relationship to the
value chain and value networks

• Assess the potential of information systems

to support supply chain management and the
value chain.

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.3

Management Issues

• Which technologies should we deploy for supply

chain management and how should they be
prioritized?

• Which elements of the supply chain should be

managed within and beyond the organization
and how can technology be used to facilitate
this?

• What are the practical issues with online supply

chain management?
David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.4

Figure 6.1 (a) Benefits of supply chain management

Note: Respondents could select all benefits that apply
Source: PMP (2008)

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.5

Figure 6.1 (b) Realization of benefits

Note: Respondents could select all benefits that apply
Source: PMP (2008)

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.6

Members of the supply chain: (a) simplified view, (b) including

Figure 6.2
intermediaries
David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.7

SCM – Some Definitions

• Supply chain management (SCM) The

coordination of all supply activities of an
organization from its suppliers and partners to its
customers.

• Upstream supply chain Transactions between

an organization and its suppliers and
intermediaries, equivalent to buy-side
e-commerce.

• Downstream supply chain Transactions

between an organization and its customers and
intermediaries, equivalent to sell-side
e-commerce.
David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.8

Table 6.2 Objectives and strategies for effective consumer response (ECR)

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.9

Figure 6.3 Inter-organizational process flow for introduction of a new product

Source: Excerpted from Toward the interorganisational product information supply chain – Evidence from the retail and consumer goods industry by C. Legner and J. Schemm © 2008.
Used with permission from Association for Information Systems, Atlanta, GA, 404-713-7444, www.aisnet.org. All rights reserved

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.10

Figure 6.4 BlueScope Steel Connect transactional site

Source: www.bluescopesteelconnect.com

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.11

Figure 6.5 A typical supply chain for a B2B company

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.12

Figure 6.6 Elemica trading platform

Source: www.elemica.com

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.13

Figure 6.7 Push and pull approaches to supply chain management

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.14

Figure 6.7 Push and pull approaches to supply chain management (Continued)

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.15

Figure 6.8 (a) Traditional value chain model

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
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The characteristics of vertical integration, vertical disintegration and virtual

Figure 6.10
integration
David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.17

Figure 6.11 E2open

Source: www.e2open.com

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.18

Popularity of different e-business applications in Europe according to

Figure 6.12
company size
Source: European Commission (2008)

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.19

Figure 6.13 A typical IS infrastructure for supply chain management

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012
Slide 6.20

Figure 6.14 Alternative strategies for modification of the e-business supply chain

David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012