Components of the E-Supply Chain:

The e-supply chain comprises of five components, namely: collaborative planning, collaborative product development, supply chain replenishment, e-procurement, and e-logistics. Each of these components plays a basic role in the success of the supply chain.

Supply chain replenishment

Supply chain replenishment adds aligning the real time demand of a particular business with its partners and suppliers so as to enhance customer service and improve customer satisfaction. More and more businesses are giving users to configure the products themselves over the Internet. Customers use configurators to assemble the elemets in different types and place an order for a product of the needed configuration. Since the number of product configurations that may be required with the provided components is called, companies could be able to standardize models. Therefore, companies may streamline their production processes and enhance efficiency.

E-business defines the way production and demand can be organized by businesses. The complexity of production operations increases, as the companies scale up their activities to take global needs. Traditional order management and production systems used by companies may not be used to track global inventory needs. E-supply chains activates companies to obtain information about the inventory levels, production plans and schedules of their production units across the globe. Managers may interact with production units and warehouses across the globe and suggest any last minute modification in plans and schedules. Some of the e-supply chain applications integrate with related ERP systems and help optimize procurement, inventory management, and scheduling. This enhances the quality of decision making in organizations and helps them minimize inventory, streamline production processes, reduce operating costs and get greater control over the business.

Collaborative planning

Collaborative planning actives organizations to coordinate product flows across their business units, optimize source utilization and optimize inventory levels through operation of operations across the suppliers and partners in the value chain. The mutual trust and reliability of the partners calculate the efficiency of the e-supply chain.

E-Procurement

E-procurement denotes to the streamlining of the procurement process across business partners in the supply chain using e-business technology. Earlier, designers had to find several catalogs to identify parts with the functionality needed for their new product designs. The process of selection was through trial and error; they often searched that parts were not compatible with others and they had to start the search. Today, electronic search mechanisms help designers search components quickly. Using software and electronic modeling, designers and engineers may instantly calculate the suitability of a part or element for the overall design. Decision-making is speeded up because most online catalogs allow three-dimensional views of the types. The engineers may also search out the long-term benefits and problems with the parts. Therefore, companies may ensure that they procure the right parts in the first instance and avoid redesigning products. On-line procurement reduces processing costs. Companies may compare online catalogs of multiple suppliers efficiently and may locate the best supplier and procure quality products at reasonable prices. Online purchase orders streamline the delivery process.

E-Logistics:

E-logistics is concerned with the redefining of warehousing and product distribution using e-business technology. E-logistics actives companies to manage the routing of products and gives customers to track the real-time shipping status of the product. Companies may even extend e-logistics to the retail unit level. They may track the inventory movement in retail stores through vendor-organized inventory systems and use the information to enhance product distribution to the stores as well as to enhance collaborative planning among the members of the supply chain. For example, P&G and Wal-Mart use software that connects P&G with Wal-Mart's distribution centers to enhance the flow of information between them. This software link allows P&G to get real-time information about the status of its products in Wal-Mart's distribution centers and a few of Wal-Mart's individual retail outlets. Relayed on this information, P&G may replenish stocks that have reached reorder level. The system even allows P&G to monitor shelves in Wal-Mart stores through real-time satellite links that give the information to P&G, whenever any of its products are scanned at the sales counter. P&G gets to know what to manufacture and ship. Besides, invoicing and payments are also automated. Through this system, P&G is able to reduce its inventory and order-processing costs, which it may pass on to Wal-Mart directly.

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