CA
e-Commerce Supports SME
Supply Chain Activities in Wales
Mike O’Shea
Clemdale Associates
February 2003
Main Activities of WDA
Regional SME Programme
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CA
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.
e-Commerce Supports SME Supply Chain Activities in Wales
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e-Commerce
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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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The Changing Business
Environment
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New market conditions:
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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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Global Sourcing Trends
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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:
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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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e-Commerce improves
Business Performance
Global Sourcing &
Selling
CA
Strategic
Partnerships
Electronic Commerce
Cost Control
e-Commerce Supports SME Supply Chain Activities in Wales
Customer Service
6
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Implementing e-Commerce
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Building the business case
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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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Implementing e-Commerce
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Develop an Implementation Strategy
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agree objectives that support business needs
identify individual and joint responsibilities
spell out timescales and milestones
Review business processes
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understand the process flows
document methods of operation
identify process improvements
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Implementing e-Commerce
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Agree an approach following evaluation of :
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the process
the information
the data elements required
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Choose an ICT Infrastructure and Software
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Pilot, Test, Go Live
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Review Project and Development Strategy
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Projects Undertaken
Sector
Manufacturing
Office/ Ind Services
Electrical/ Electronics/
Telecommunications
Industrial Engineering
Plastics (various)
Food Processing
Distribution/ Logistics
Freight Forwarding
Textiles
Agriculture related
No. of
Projects
Proposal
Prepared
9
7
6
Phase I
Business
Analysis
6
4
3
Phase II Full
Development/
Implementation
6
4
2
9
7
6
6
4
3
3
2
2
2
6
4
3
3
2
2
2
1
2
2
2
1
1
2
2
1
1
1
1
1
2
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Business Relationships
28%
Customers
Suppliers
72%
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Applications Developed
12%
10%
Warehousing Controls, JIT
8%
Product Catalogues/Pricing
18%
Orders & Order Amendments
Schedules & Forecasts
28%
Payments & Invoicing
Despatch, Delivery Logistics
24%
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Business Advantages for SMEs
Cost
Speed
Accuracy
Improved
Trading
Relationships
Reduced Errors
Increased Market
Share
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Reduced
Lead Times
Reduced Stock
Lower Overheads
Value
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Main Benefits Reported
Be n e fi ci ari e s - su ppl i e rs
Be n e fi ci ari e s - cu stom e rs
Be n e fi ci ari e s - own organ i sati on
Im prove d accou n tabi l i ty
Em pl oym e n t Growth /re te n ti on
S i gn i fi can t
Be tte r cu stom e r se rvi ce
Mode rate
Im prove d u se fu l n e ss of syste m s
Non e
In cre ase d tradi n g opportu n ti e s
W i de n e d u se of e l e ctron i c S yste m s
Im prove d C u stom e r/S u ppl i e r Re l ati on s
C om pe ti ti ve Advan tage
Ti m e S avi n gs
C ost S avi n gs
0
20
40
60
e-Commerce Supports SME Supply Chain Activities in Wales
80
100
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Main Inhibitors
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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
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e-Commerce Supports SME
Supply Chain Activities in Wales
Summary
Utilising e-Commerce in the
supply chain is a business not a
technology issue
CA
e-Commerce Supports SME
Supply Chain Activities in Wales
Mike O’Shea
Clemdale Associates
February 2003
CA
Case Study
e-Commerce in Supply Chain Management
Mike O’Shea
Clemdale Associates
February 2003
CA
CPM Gifts Limited
E-Commerce Project
Case Study
www.cpm-gifts.com
CA
Company Overview
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The company was formed in 1985 in
Cardiff and currently employs 55 people
CPM produce an extensive range of
personalised products:
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Ceramics and glassware decoration
Textile print – automatic and manual
Computerised design studio
Warehouse in Cardiff
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Key Customers
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Clinton Cards
BHS
Tesco
Duty Free Operators Worldwide
London Souvenirs
WRU (Welsh Rugby Union)
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Project Objectives
Three 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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The Challenges
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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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Guiding Principles
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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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Types of Content
10 main types of content presented:
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CPM Home Page and
corporate identity
Textiles
Ceramics
Glassware
Gifts
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Souvenirs
Named gifts
Gifts for all seasons
Name droppers
Memorabilia
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Systems Overview & Features
Systems development based on:
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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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Systems Overview & Features
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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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Systems Overview & Features
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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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Business Benefits
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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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Supply Chain Performance
Improvements
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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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Supply Chain Performance
Improvements
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Increased market transparency through use
of electronic catalogue;
Business activities and structures reengineered 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.
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e-Commerce Supports SME
Supply Chain Activities in Wales
Mike O’Shea
Clemdale Associates
February 2003