上海交通大学：《供应链管理 Supply Chain Management》课程教学资料_LectureNote（UnderG）_06_Supply Chain Integration（2）（2013Fall with script）

Supply Chain Integration Xiaohong Pang Automation Department Shanghai Jiaotong University

Supply Chain Integration Xiaohong Pang Automation Department Shanghai Jiaotong University

Lecture Outline Introduction Push,Pull,and Push-Pull Systems The Impact of the Internet on Supply Chain Strategies

Lecture Outline „ Introduction „ Push, Pull, and Push-Pull Systems „ The Impact of the Internet on Supply Chain Strategies

Impact of the Internet on Supply Chain Strategies The influence of the Internet and e- commerce on the economy in general and business practice in particular has been tremendous.Changes are happening rapidly: Direct business model Enables customers to order products over the Internet Allows companies to sell their products without relying on Third-Party distributors (e.g.,Dell Computers and Amazon.com)

Impact of the Internet on Supply Chain Strategies The influence of the Internet and e￾commerce on the economy in general and business practice in particular has been tremendous. Changes are happening rapidly: „ Direct business model „ Enables customers to order products over the Internet „ Allows companies to sell their products without relying on Third-Party distributors (e.g., Dell Computers and Amazon.com)

Impact of the Internet on Supply Chain Strategies Changes are happening rapidly: Business to business e-commerce promises convenience and cost reduction The Internet and the e-business models have produced expectations t that many supply chain problems will be resolved merely by using these new technology and business models

Changes are happening rapidly: „ Business to business e-commerce promises convenience and cost reduction Impact of the Internet on Supply Chain Strategies The Internet and the e-business models have produced expectations that many supply chain problems will be resolved merely by using these new technology and business models

Impact of the Internet- Expectations Were High E-business strategies were supposed to: ■Reduce cost Increase service level Increase flexibility ·Increase profit In reality,these expectations have gone unmet because many of the new e-businesses have not been successful

Impact of the Internet – Expectations Were High „ E-business strategies were supposed to: „ Reduce cost „ Increase service level „ Increase flexibility „ Increase profit In reality, these expectations have gone unmet because many of the new e-businesses have not been successful

Example 6-8,6-9 Take 2 min.to consider example 6-8,6-9, think about the questions below. 1.Whether does e-business model fit the companies? 2.Why? Pull H I II IV III Push L L H Pull Push

1. Whether does e-business model fit the companies? 2. Why? Example 6-8, 6-9 Take 2 min. to consider example 6-8, 6-9， think about the questions below. Pull Push Pull Push I II IV III L H H L

Reality is Different ..... Amazon.com Example Founded in 1995;1st Internet purchase for most people ■1996：$16 M Sales,$6 M Loss ■1999：$1.6 B Sales,$720 M Loss ■2000：$2.7 B Sales,$1.4 B Loss Last quarter of 2001:$50M Profit,Total debt:$2.2B Peapod Example ■Founded in1989 140,000 members,largest on-line grocer Revenue tripled to $73 million in 1999 1st Quarter of 2000:$25M Sales,Loss:$8M

Reality is Different …… „ Amazon.com Example „ Founded in 1995; 1st Internet purchase for most people „ 1996: $16M Sales, $6M Loss „ 1999: $1.6B Sales, $720M Loss „ 2000: $2.7B Sales, $1.4B Loss „ Last quarter of 2001: $50M Profit, Total debt: $2.2B „ Peapod Example „ Founded in 1989 „ 140,000 members, largest on-line grocer „ Revenue tripled to $73 million in 1999 „ 1st Quarter of 2000: $25M Sales, Loss: $8M

Example 6-6 Take 2 min.to consider example 6-6, think about the questions below. Analyze the example using the framework we have Pull ↑H II learnt before,consider: 1. Which of the strategies, push,pull,push-pull,or pull- push,fits the furniture IV III Push L company? 2. What were the main reasons L H for its downfall? Pull Push

Analyze the example using the framework we have learnt before, consider: 1. Which of the strategies, push, pull, push-pull, or pull￾push, fits the furniture company? 2. What were the main reasons for its downfall? Example 6-6 Take 2 min. to consider example 6-6， think about the questions below. Pull Push Pull Push I II IV III L H H L

Reality is Different ..... Furniture.com Example launched in 1999,with thousands of products $22 Million in sales the first nine months n( Over 1,000,000 visitors per month n Died November 6,2000 Pul↑H II Logistics costs too high IV III PushL H Pull Push

„ Furniture.com Example „ launched in 1999, with thousands of products „ $22 Million in sales the first nine months „ Over 1,000,000 visitors per month „ Died November 6, 2000 „ Logistics costs too high Reality is Different …… Pull Push Pull Push I II IV III L H H L

Successful Cases Dell Example Dell Computer has outperformed the competition in terms of shareholder value growth over the eight years period,1988- 1996,by over3,000%. Think-Pair-Share Take 2 min.to consider the two questions: What did Dell do?What can we learn anything from Dell and perhaps apply to other industry? (See Anderson and Lee,1999)

„ Dell Example „ Dell Computer has outperformed the competition in terms of shareholder value growth over the eight years period, 1988- 1996, by over 3,000%. Successful Cases …… (See Anderson and Lee, 1999) Think – Pair – Share Take 2 min. to consider the two questions: What did Dell do? What can we learn anything from Dell and perhaps apply to other industry?