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Posts Tagged ‘Supply Chain Management’

How to Reshape Your Supply Chain Network (and Why You Need to Do It Now)

February 1, 2010 Leave a comment

by Khudsiya Quadri (see bio)

The landscape of the supply chain has changed drastically over the past five years. It went from local to global in manufacturing, procurement, sourcing, logistics, and customers. As such, there are some major challenges in the supply chain network:

  1. There are no boundaries within the network.
    There are no physical or virtual boundaries left within the supply chain. For example, the customer could be in North America and ordering a product via the Internet from Ireland—but this creates a problem. Why? Each party involved is not aware of the rules and regulations they need to comply with, and do not understand that an order confirmation from the manufacturer is crucial to the retailer’s (manufacturer’s customer) delivery schedule to the end consumer.
  2. It is difficult to make the pieces of the puzzle fit cohesively.
    Each process within the supply chain needs to work together. For example, it’s crucial for a warehouse to know when the shipment will arrive. If the warehouse is unaware of the delays caused by the transportation company, it will cause labor/capacity and equipment availability issues.
  3. Not being able to adapt to rapidly changing customers’ preferences.
    Organizations need to understand the shifts that are occurring in the customer’s requirements. For example, Coca-Cola recently came out with a product that contains 90 calories for diet-conscious customers. In this scenario, if the organization’s manufacturing and product development was not aligned with the customer’s requirements, an organization could in turn lose these customers.

Now, the daunting question: How can an organization eliminate these challenges/risks and still make its supply chain work accordingly.

The answer: E-commerce.

E-commerce is an electronic exchange of data or a transaction, like an electronic funds transfer (EFT), or an electronic data interchange (EDI).  E-commerce within the supply chain helps create links for each business process. This allows organizations to communicate and collaborate with trading/business partners. There are benefits for using e-commerce- based applications:

  • All information regarding changes in rules and regulation are communicated between trading partners. The shipper is aware of the new laws regarding the delivery destination or location. For example, in the US, the new security program known as the “10+2 rule” mandates that advanced shipment notification (ASN) has to be provided to customs 24 hours before a shipment arrives at US borders.
  • Any changes in the demand for a product/service are communicated instantaneously either via the Internet or through data interchange (portal, EDI, e-mail etc.). This eliminates the excess costs associated with manufacturing and delivering products where there is no demand—or spike in demand.
  • Knowing what inventory is in the store, or in the plant is essential when confirming customers’ orders. By using e-commerce, organizations can get better visibility into inventory levels—regardless of where the inventory is residing. All details of inventory will be provided via ASN or an inventory portal.

Organizations must be aware that the transition to e-commerce needs to happen in a manner where the following considerations are taken into account:

  • Clearly define each business process. If business processes aren’t clearly defined, gaps will be created within an organization’s supply chain.
  • Provide adequate training on e-commerce applications to all parties involved (both internally and externally). If an organization doesn’t provide sufficient training to staff and suppliers, workarounds will be created to avoid using the application which in turn creates additional costs for an organization.
  • The user interface (UI) make sure the e-commerce application is user-friendly. If organizations don’t provide the proper interface, it will take longer to process a transaction because more time is spent understanding the application than actually processing a transaction.

Organizations with an integrated supply chain reap the benefits of faster development cycles for a product and handle changes in the market place without creating a fiasco for the parties involved. With the help of an e-commerce enabled supply chain, companies are able to expand their business into emerging and existing markets and can streamline their business processes with customers and suppliers.

How about you? What are your thoughts on the benefits or drawbacks of e-commerce? I welcome your comments.

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ODScommerce Delivers Knowledge Process Outsourcing Services that Drive Bottom-line Supply Chain Benefits Through an On Demand Model for Global Commerce

November 5, 2009 Leave a comment

Pittsburgh, PA, Nov. 5, 2009 – ODScommerce, Inc. now offers a compelling and significant value proposition for its SMB worldwide customers by providing standard and customized outsourcing and professional service options backed by a highly skilled and professional global team. Knowledge Process Outsourcing(KPO) solutions combine the conventional practice of e-sourcing with the power of the Internet and SaaS that forms robust new service offerings that reduce costs, improve customer service, and creates immediate customer value. “In fact, more and more companies are now realizing that the near-term impact of Knowledge Process Outsourcing is one of the most effective strategies for maximizing profitability,” stated Ramesh Mehta, CEO and President of ODScommerce, Inc. “ODScommerce separates itself from other industry service providers with a proven portfolio of services designed for SMB clients and proven by Fortune 500 customers.”

ODScommerce is delivering its KPO services for global commerce to Infrastructure (Construction), Energy/Utility, Manufacturing and Transportations industries. The dynamic On Demand Business Model offers a complete on-line e-sourcing package that will drive efficiencies, streamline systems and integrate business processes across all functions.

The On Demand Service Model offers flexible solutions that are customized and scaled to meet the needs of individual sourcing organizations, no matter where they are in their e-Sourcing organizational function. ODScommerce will provide and support a complete package of e-sourcing business transactions that allows for continuous and strategic management of the total process by enabling clients to connect sourcing and procurement to spend analysis and contract management functions within the organization. At the same time, the model leverages the scalability of SaaS that is dynamic in design, compliments organizational growth and facilitates professionally managed relationships between suppliers and customers.

More at  http://www.odscommerce.com/news-events/20091105.php

A SaaS Based On-demand Procurement Service Company, Answers the SMB Need for a Knowledge Processing Procurement Solution

November 4, 2009 Leave a comment

Pittsburgh, PA, Oct. 27, 2009 – ODScommerce, Inc. is pleased to announce a powerful web based solution delivering single-point 24×7 access for all procurement-related processes and sourcing requirements. This OnDemand service model for global commerce offers flexible solutions that are customized and scaled to meet the needs of individual sourcing organizations, no matter where they are in their e-Sourcing organizational function.

Trading events for Buying and Selling are organized for flexible deployment and available in a variety of formats that are client run or ODScommence enabled. Attractive options including customized packages targeted to the needs of the SMB market provide customers with the “right” level of support that they need to operate and manage their business models. These event driven services are organized though a menu approach with each event module adaptable for quick implementation via a SaaS architected solution to support the needs of SMB industries in a secured environment and scalable to meet all customer requirements.

“We are delighted to offer our On-Demand Services for global commerce to our SMB customers and feel that providing these services, that were only available to the Fortune 500 companies in the past, will now provide a healthier and more competitive class of customers in the future.” said Ramesh Mehta, CEO and President of ODScommerce, Inc. “ Technology has facilitated this move and with SaaS and leveraging our world class and proven application customers can expect within weeks to achieve an absolute return on their investment and expect that with time, the savings will compound”. “ Customers can expect some of our services to include RFP, RFQ Auctions, Multistage Bidding, Strategic /Project Sourcing, Vendor Selections, Requisition Management, Contract Management, Requisition Management, Supplier Data Base Management and of course be provided with project services that facilitate any wrap-around services that customers need to operate their businesses”.

For More: http://www.odscommerce.com/news-events/20091027.php