[8] 2002 e-business-strategies-for-virtual-organizations
[8] 2002 e-business-strategies-for-virtual-organizations
[8] 2002 e-business-strategies-for-virtual-organizations
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
e-<strong>business</strong> <strong>strategies</strong> in the <strong>virtual</strong> organization<br />
feedback that can be rolled into production plans. Matching<br />
production to real-time demand is an obvious objective but<br />
difficult to achieve. Pretty quickly, one gets the picture of the<br />
massive inventory blowout that could be reduced if the entire<br />
supply chain had transparency of process and demand.<br />
Virtual supply chains collaborating in real<br />
time represent the fastest return on the<br />
dollar<br />
At stake are billions of dollars in inventory reduction, transport<br />
costs, and process improvement. The recent explosion of<br />
industry horizontal and vertical portals and hubs (e-hubs)<br />
reflect natural points of integration and coordination to facilitate<br />
the synchronization of demand and supply chains. The standard<br />
tradition is <strong>for</strong> companies to create build-to-order environments.<br />
Today the goalposts have been shifted: we see that the goal is to<br />
build fewer generic products <strong>for</strong> inventory (that has to be stored<br />
and handled) and more custom products <strong>for</strong> a known order –<br />
preferably being shipped right out the door, still warm from<br />
whatever production process that gave them birth. To do this,<br />
companies must create a global shop floor to link production<br />
more tightly to current demand.<br />
10.3.3 Once commerce is online, every<br />
demand is an input into production<br />
planning<br />
We know that marketing campaigns, configuration events,<br />
rebates, advertising, quotes, bids, partner campaigns, and<br />
negotiations all combine to drive production. Usually, production<br />
is the last to find out about these events because of the<br />
complexity and costs associated with sharing this in<strong>for</strong>mation<br />
with all the relevant parties that lie along the route between a<br />
raw material producer and the consumer’s point of purchase or<br />
consumption. e-commerce can help bring more precision to a<br />
historically imprecise process. The discontinuity between multiple<br />
parties in the chain of commerce, some within the same<br />
company, is immense and a small improvement could make a<br />
big difference. We introduced the value chain alliance as early as<br />
Chapter 3, and it should be clear by now exactly how and why<br />
some <strong>organizations</strong> will wish to adopt this organizational<br />
strategy.<br />
209