CCAA
e-Commerce Supports SME Supply Chain Activities in Wales
Mike O’SheaMike O’SheaClemdale Associates
February 2003
e-Commerce Supports SME Supply Chain Activities in Wales 2
CCAA Main Activities of WDA Regional SME Programme To provide an Independent Source
of information on e-Commerce related subjects.
To provide businesses with Development and Implementation Support and Expertise
To promote an active e-Commerce Business Community in Wales.
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CCAA
e-Commerce A convergence of different
methods of business communication into a single concept
Use linked to the re-engineering of business processes
Driven by business to control costs, enhance efficiency & gain competitive advantage
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CCAA The Changing Business Environment New market conditions:
Specialisation Subcontracting Global Sourcing
Technological developments in the areas of production, transportation and communications
More elaborate capabilities of people to exploit the possibilities
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CCAA
Global Sourcing Trends Increase in supplier/purchaser relationships
mediated by computer networks - little face to face interaction and low costs;
Increase in strategic alliances and partnerships through use of Electronic Communications leads to:
long term and more co-operative relationships expanded use of electronic commerce and EDI early involvement by suppliers in new product
development a dramatic reduction in the supplier base agreements on a schedule of price reductions by suppliers
Achievement of best price, quality, delivery and flexibility
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CCAA e-Commerce improves Business Performance
Electronic Commerce
Global Sourcing & Selling
Strategic Partnerships
Cost ControlCustomer Service
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CCAA Implementing e-Commerce Building the business case
customer / supplier analysis business analysis and cost justification - not
just paper procedures but strategic improvements
evaluation of technology and systems options
Secure commitment - internally & externally
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CCAA Implementing e-Commerce Develop an Implementation Strategy
agree objectives that support business needs
identify individual and joint responsibilities spell out timescales and milestones
Review business processes understand the process flows document methods of operation identify process improvements
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CCAA Implementing e-Commerce Agree an approach following evaluation of :-
the process the information the data elements required
Choose an ICT Infrastructure and Software
Pilot, Test, Go Live
Review Project and Development Strategy
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CCAA
Projects Undertaken
Sector No. of
Projects Proposal Prepared
Phase I Business Analysis
Phase II Full Development/
Implementation Manufacturing 9 9 6 6 Office/ Ind Services 7 7 4 4 Electrical/ Electronics/ Telecommunications
6 6 3 2
Industrial Engineering 6 6 1 2 Plastics (various) 4 4 2 1 Food Processing 3 3 2 1 Distribution/ Logistics 3 3 2 1 Freight Forwarding 2 2 1 1 Textiles 2 2 1 1 Agriculture related 2 2 2 2
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CCAA
Business Relationships
28%
72%
Customers
Suppliers
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CCAA
Applications Developed
10%
18%
12%
24%
28%
8%Warehousing Controls, JIT
Product Catalogues/Pricing
Orders & Order Amendments
Schedules & Forecasts
Payments & Invoicing
Despatch, Delivery Logistics
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CCAA Business Advantages for SMEs
Cost Speed
Accuracy
Improved Trading
Relationships
Reduced Lead Times
Reduced Errors
Reduced Stock
Increased Market Share
Lower Overheads
Value
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CCAA
Main Benefits Reported
0 20 40 60 80 100
Cost Savings
Time Savings
Competitive Advantage
Improved Customer/Supplier Relations
Widened use of e lectronic Systems
Increased trading opportunties
Improved usefulness of systems
Better customer service
Employment Growth/retention
Improved accountability
Beneficiaries - own organisation
Beneficiaries - customers
Beneficiaries - suppliers
Significant
Moderate
None
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CCAA
Main Inhibitors Cultural Resistance - changing Lack of management awareness -
improving Reluctance to invest – business not
technology Weak commercial incentive –understanding
business opportunity and benefits Systems development - complexities Bureaucracy - Public Sector improving Security – secure trading issues
CCAA
e-Commerce Supports SME Supply Chain Activities in Wales
SummaryUtilising e-Commerce in the
supply chain is a business not a technology issue
CCAA
e-Commerce Supports SME Supply Chain Activities in Wales
Mike O’SheaMike O’SheaClemdale Associates
February 2003
CCAA
Case Study e-Commerce in Supply Chain
Management
Mike O’SheaMike O’SheaClemdale Associates
February 2003
e-Commerce Supports SME Supply Chain Activities in Wales 20
CCAA
Company Overview The company was formed in 1985
in Cardiff and currently employs 55 people
CPM produce an extensive range of personalised products: Ceramics and glassware decoration Textile print – automatic and manual Computerised design studio Warehouse in Cardiff
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CCAA
Key Customers Clinton Cards BHS Tesco Duty Free Operators Worldwide London Souvenirs WRU (Welsh Rugby Union)
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CCAA
Project ObjectivesThree Primary Objectives To provide a solution for an on-line supply
chain system utilising the web; To complete a detailed business analysis
for integrating the website with both production and commercial systems;
To implement online marketing supports to enable a one-stop shopping experience.
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CCAA
The Challenges To present the entire product range
online to best advantage to maximise sales and revenue potential;
To integrate the customer ordering process with internal systems;
To manage supply chain activities more cost effectively;
To introduce new product ranges facilitated by an e-Commerce environment.
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CCAA
Guiding Principles Ensure that all potential customers have
information which is relevant to them; Customise the sytem for each profile of
customer; Provide several ways of accessing product
data as quickly and easily as possible; Provide marketing ideas as to how the
product range may be used and extended.
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CCAA
Types of Content
CPM Home Page and corporate identity
Textiles Ceramics Glassware Gifts
Souvenirs Named gifts Gifts for all
seasons Name droppers Memorabilia
10 main types of content presented:
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CCAA Systems Overview & FeaturesSystems development based on:
Visitors to the CPM website will be able to order any of the CPM range online
Range of products will include the personalisation of Named Mugs
The visitor will be able to select a mug from the stock range and add it to their shopping cart
They will specify the name they want on the mug
Once they have finished shopping they will go to the checkout and complete their order
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CCAA Systems Overview & Features Completed orders are collected by CPM on a
regular basis throughout the day Any orders for Personalised Named Mugs are
automatically identified and stored in a local database
These orders are held in a queue until there are sufficient orders to meet the production criteria
The Art department is automatically notified that a batch of orders is ready and can be released
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CCAA Systems Overview & Features Releasing the orders automatically
populates the the appropriate template with the text for the mugs required.
Internal paperwork is raised and the orders proceed through the Named Mug production process.
At the end of the production process the system automatically generates the paperwork required to complete the order and despatch it to the customer.
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CCAA
Business Benefits Strategic, marketing and overall business
objectives met; New line of business implemented for
personalised products; Integration of online ordering and production
achieved for ‘Named Mugs’; Key personnel up-skilled to operate and
administer new systems; “e-culture” introduced throughout CPM; Key customers retained and business
relationships improved.
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CCAA Supply Chain Performance Improvements Increased business turnover and better cash
flow facilitated by on-line payments; More orders and broader client base; e-Commerce has enabled immediate
communication with organisations and in particular with international markets;
New business ventures and channels to market established;
Worldwide access to supply chain and competitors;
Niche market for personalised products established and growing.
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CCAA Supply Chain Performance Improvements Increased market transparency through
use of electronic catalogue; Business activities and structures re-
engineered to provide a more competitive partnership position
Closer and more efficient co-operation in production and scheduling activities
Long term strategic benefits through locking in main customers via e-Commerce.