Forschungsprojekt ECOMODForschungsgruppe Unternehmensmodellierung

Referenzgeschäftsprozesse und Strategien im E-Commerce

Focus on Integration of the internal value chain (Val)

Order on demand
ID: Val_1.1
Description
This strategic option aims at procuring the required parts after an order has been placed.
Necessary investments
In order to quickly purchase the parts required for a specific order sales application systems have to be integrated with procurement systems. Furthermore, procurement processes have to be optimized with respect to minimized cycle times. In order to allow electronic ordering of procurement goods it is necessary to agree on certain standards. Procedures have to be implemented to reliably determine your own demand on time.
Opportunities
Differentiation advantages can be realized through individual product configuration. Warehousing costs can decrease significantly through order on demand.
Risks
The dependency on the suppliers' assertions on delivery times increases. There is the risk of significantly longer delivery times of your own products.
Critical success factors
Skeleton contracts with suppliers :
In general, long term skeleton contracts are prerequisite for quickly performing (automated) purchase orders.
Integration :
Coordination of order processing and procurement processes as well as adequately integrated supporting business application systems are vital for reliably and timely determining demand.
Standards :
In order to minimize the dependency to selected suppliers non-proprietary standards should be chosen for the electronic exchange of business documents.
Required strategic option:
Skeleton contracts: Pro_1.1
Affected processes:
Order acceptance: Order_1
Procurement: Sourc

Just in time delivery
ID: Val_1.2
Description
This strategic option aims at the delivery of production parts when they are actually needed in the production processes, in this way leading to minimized inventory stocks.
Necessary investments
Just-in-time delivery requires integration of production scheduling and control systems with procurement systems. Furthermore, procurement processes have to be optimized with respect to minimized cycle times. In order to allow electronic ordering of procurement goods it is necessary to agree on certain standards. Procedures have to be implemented to reliably determine your own demand on time.
Opportunities
Inventory stocks as well as corresponding capital lock up can be minimized.
Risks
The dependency on the suppliers' assertions on delivery times increases. This leads to the risk of idle times in production as well as the risk of not being able to meet your own delivery times.
Critical success factors
Integration :
In order to submit purchasing orders on time it is vital to integrate production scheduling and planning systems with procurement systems
Skeleton contracts with suppliers :
In general, long term skeleton contracts are prerequisite for quickly performing (automated) purchase orders.
Standards :
In order to minimize the dependency to selected suppliers non-proprietary standards should be chosen for the electronic exchange of business documents.
Required strategic option:
Skeleton contracts: Pro_1.1

Integrated forecasting and planning
ID: Val_1.3
Description
Demand planning is performed on the basis of sales forecasts, which succeeding value chain levels might also have contributed to. The derived demand is made available to previous value chain levels (i.e. suppliers) to support their planning. Implementing this strategic option requires a long term contractual commitment of all involved value chain partners.
Necessary investments
Planning processes have to be coordinated and the respective value chain partners have to agree on certain standards for exchanging planning data. Additionally, the application systems supporting forecasting and planning should be integrated with procurement systems in order to avoid redundant data storage and to support adaptation of plans later on.
Opportunities
Planning across the boundaries of single value chains enables overall optimization of processes and resource allocation. In this way, it is possible to significantly reduce costs.
Risks
Early communication and passing on of your own demand planned requires commitment to selected suppliers leading to a high dependency on their ability to meet the requirements. Integrated forecasting and planning implies high risks with respect to implementing the required technological infrastructure and the partners' ability and willingness to cooperate.
Critical success factors
Cooperation and trust :
The respective companies must be willing to pass on their forecast and planning data. They should be protected from misuse of this information through contractual agreements.
Standards :
In order to minimize the dependency non-proprietary standards should be chosen for the electronic exchange of business documents.
Required strategic option:
Skeleton contracts: Pro_1.1