[8] 2002 e-business-strategies-for-virtual-organizations

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Moving from e-business to i-business strategies in virtual markets identify the following areas for improvement: operating standards and replenishment. By applying common operating standards the retailer’s regional distribution centres or stores can be optimized. When a regional distribution concept is used, this strategy normally does not include the exchange of information regarding the flow from the retailer’s regional distribution centres to the stores, nor analytical EPoS (electronic point of sales) data. However, there is still a significant potential for improvement, e.g. delivery planning, advanced shipping notes, cross-docking, and the use of bar codes on pallets. Efficient replenishment strategies build on EPoS data being transferred to the supplier, who takes responsibility for deliveries within agreed stock levels. If a direct-store-delivery system is in operation, EpoS sales data is regularly included in the data transfer from customer to supplier, otherwise the data flow is normally restricted to contain the aggregate levels from the customer’s regional warehouses. This concept contains a potential risk for increasing the supplier’s costs, when the underlying supply chain management strategies are not reconsidered. Since retailers generally aim at minimizing their warehouse costs, they tend to increase the frequency of orders, while reducing their volume, thus striving for a ‘just-in-time’ delivery concept. This will result in costs being transferred to the supplier, and most likely an increased total cost volume within the supply chain. A way of reducing the negative impact on the supplier is to provide him with sales data and forecasts on either PoS or RDC level, thus allowing a more accurate production and logistics planning. Beyond the improvement of physical logistics, the flow of information between the parts being involved in collaboration and the handling of administrative issues play an important role for succeeding with SRC efforts. Reducing non value added activities by using information technology will result in cost reduction, improved data accuracy, and less paperwork. 5.5.2 Driving supply chain management In its current state, most of the impetus for supply chain economics is coming from the retail side, based on achievable cost reduction. While there may be a difference between economies which focus primarily on increased gross margins and those which target cost reductions, the strategy of supply chain management that results is similar. 87
e-Business Strategies for Virtual Organizations 88 Another reason, beside the directly financial, is awareness of the changing demands of final consumers and the ability to harness them. The emerging concentrations of power in a small group of retail organizations, for example in the retail grocery trade across Europe, allows the retailers to exert pressure on the suppliers and along the entire chain of supply. 5.5.3 Knowledge exchange and enabling technology The exchange of knowledge and information between the partners participating in the improvement of a supply chain is a precondition for success. Depending on the chosen collaborative level, this may include the free access to analytical sales data, sales forecasts and internal logistics figures, but even more qualitative information regarding purchasing behaviour, consumer requirements and changing demands. This information flow improves the planning ability throughout the entire supply chain, and allows fast responses to changes in environmental dynamics and variations in demand. Information technology in various forms is the enabling factor for the successful implementation of improved supply chains in operations, since it makes possible the inexpensive, frequent and extensive exchange of information between the parties involved. It is for this reason that proprietary EDI first justified its cost. Among large corporations this is one of the most common tools employed to allow information exchange at the required pace and intensity. Several studies, conducted in many different industries, have shown that the electronic exchange of primarily quantitative data, but even quantitative information, works very effectively if the necessary preconditions are satisfied. The ability of retailers and suppliers to integrate effectively within improved supply chains requires two basic elements – electronic point of sales (EPoS) data and (EDI). We discuss briefly how these integrate. The data scanned at the retailer’s points of sale can be used for managing the physical flow from the retailer’s regional distribution centres to the stores, and to improve the retailer’s warehousing at regional and store level. In this case, the data need not necessarily be transferred to the supplier, but can be used to develop sales forecasts that enable the supplier to better plan its own operations. When a direct-store-delivery system is in place, the data can even be used to improve the planning of deliveries to the retailer’s stores. Used in conjunction with point
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e-Business Strategies for Virtual O
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e-Business Strategies for Virtual O
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Contents Computer Weekly Profession
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Contents 6 Globalization and e-busi
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Contents 11.6 The increasing power
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Computer Weekly Professional Series
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Authors’ Preface There are dozens
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Authors’ Preface model will there
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Authors’ Preface alliances, bette
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1 e-business and the virtual organi
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e-business and the virtual organiza
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Figure 1.2 e-business and the virtu
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1.5 e-business e-business and the v
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Figure 1.3 e-business and the virtu
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Figure 1.4 Virtual objects, Scholz
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Characteristics of the virtual orga
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Figure 2.1 Formation of business al
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� empowerment of staff; Character
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e-business models for virtual organ
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e-business models for virtual organ
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Page 62 and 63: 3.4 Models of efficient response e-
Page 64 and 65: Figure 3.4 Star alliance model e-bu
Page 66 and 67: Figure 3.6 Market alliance model Fi
Page 70 and 71: Figure 3.10 Virtual alliance framew
Page 72 and 73: Figure 3.11 Virtual organizational
Page 74 and 75: References e-business models for vi
Page 76 and 77: IS planning strategies for emerging
Page 80 and 81: Figure 4.1 The evolution of IS/IT p
Page 82 and 83: Figure 4.3 A framework for SISP (Wa
Page 86 and 87: Figure 4.4 Planning adopts a busine
Page 88 and 89: Figure 4.5 Interconnected ecologies
Page 90 and 91: Figure 4.6 The interrelationships b
Page 94 and 95: 4.8 Conclusion IS planning strategi
Page 96 and 97: References IS planning strategies f
Page 98 and 99: Moving from e-business to i-busines
Page 130 and 131: Globalization and e-business strate
Page 134 and 135: Adoption and deployment of online i
Page 136 and 137: Table 6.1 Online business models On
Page 140 and 141: Figure 6.2 VIM strategy Globalizati
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Globalization and e-business strate
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7 Developing knowledge-based strate
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Developing knowledge-based strategi
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8 Evaluating strategies for e-busin
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Figure 8.2 Fitness landscapes Evalu
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Evaluating strategies for e-busines
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Table 8.1 Information economics - v
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Customer view Whatisour image? Eval
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Table 8.6 Matrix for preparing to m
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9 Outsourcing, partnering and the v
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Outsourcing, partnering and the vir
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Figure 9.2 Outsourcing, partnering
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9.9 Summary Outsourcing, partnering
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References Outsourcing, partnering
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e-business strategies in the virtua
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10.10 Summary e-business strategies
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11 Creating virtual cultures for gl
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Creating virtual cultures for globa
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Four stages of market evolution Mar
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Figure 11.4 The four paths of evolu
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References Creating virtual culture
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Advanced knowledge, see Knowledge A
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[8] 2002 e-business-strategies-for-virtual-organizations

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