Turban- 3e
Instructor’s Manual
Appendix A
E-COMMERCE AND
SUPPLY CHAINS
Learning Objectives
Upon completion of this chapter, you will be able to:
1. Describe the major concepts of supply chains and their management.
3. Explain how supply chain management (SCM) works and how it solves supply chain problems.
4. Describe CPFR and its benefits.
Content
Opening Case: Boeing’s Global Supply Chain for the Dreamliner 787
A.1 E-Supply Chains
A.2 Supply Chain Problems and Solutions
A.3 RFID as a Key Enabler in Supply Chain Management
A.4 Collaboration Along the Supply Chain
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Answers to Section Review Questions
Section A.1 Review Questions
1. Define the e-supply chain and list its three major parts.
2. Describe success factors of e-supply chain management.
3. List the eight processes of e-supply chains.
5. Describe a digital supply chain.
A supply chain that is managed electronically, usually with Web technologies.
6. Describe visibility and tracking along the supply chain.
Section A.2 Review Questions
1. Describe some typical problems along the supply chain.
2. Describe the reasons for supply chain-related problems.
3. Describe the bullwhip effect.
4. Describe the benefits of information sharing along the supply chain.
5. List some EC solutions to supply chain problems.
Section A.3 Review Questions
1. Describe how RFID can be used to improve supply chains.
2. Explain how RFID works in a supplier-retailer system.
3. Briefly explain the differences between active and passive RFID tags.
4. In what circumstances would it be better to use passive RFID tags? And in what circumstances
might it be better to use active RFID tags?
5. What are some of the major limitations of RFID technology?
• Cost of implementation
Section A.4 Review Questions
1. Define VMI and list its benefits.
Vendor-managed inventory (VMI) – The practice of retailers making suppliers responsible for
2. How can EC facilitate retailer-supplier collaboration?
3. How can EC reduce inventory cost?
4. How can EC reduce product development time?
Section A.5 Review Questions
1. Define collaborative planning.
2. Define CPFR and describe its advantages.
3. Describe how CPFR can help a manufacturing organization.
Answers to EC Application Case Questions
EC Application Case A.1: AIRBUS IMPROVES PRODUCTIVITY WITH
RFID
1. What are the drivers of the RFID project?
2. What information technologies were used in this project?
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3. What categories of people are supported by RFID?
4. How can RFID provide visibility to Boeing?
5. Go to the link provided in the case sources and watch the Webcast. It will provide you with a
virtual tour of Airbus’s supply chain. Report on how RFID provides real-time visibility in the key
processes.
Student perceptions of the video will vary.
EC Application Case A.2: West Marine: A CPFR Success Story
1. What were the major elements of West Marine’s CPFR success?
2. What were the benefits of the CPFR implementation for West Marine?
Answers to Individual Discussion Questions
1. Define e-supply chain and discuss its importance in supporting organizational performance.
An e-supply chain is a supply chain that is managed electronically, usually with Web technologies.
2. Does a company’s supply chain include the movement of money, materials, and information
within the company? How are they interrelated?
3. Discuss the major considerations that must be taken into account when implementing VMI.
4. Discuss the contribution of Web-enabled ERP systems to effective supply chain management.
6. It is said that c-commerce signifies a move from a transaction focus to a relationship focus
among supply chain members. Discuss.
7. Discuss the need for virtual meetings.
8. Discuss how CPFR can lead to more accurate forecasting and discuss how it can resolve the
bullwhip effect.
9. Describe the advantages of RFID over a regular bar code in light of supply chain management.
Answers to Class Discussion Questions
1. Describe how the advent of the Internet has affected supply chain management. Include in your
answer the contribution of the Internet to the following aspects and challenges:
a. Globalization
b. Outsourcing, including business process outsourcing
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Student perceptions and responses will vary.
o Globalization – The Internet has increased this, and also allowed for the tools and
2. Discuss the proposition that competition in contemporary business is best described and
conceptualized as competition between industry supply chains rather than between that of
individual corporations.
3. Discuss the importance of taking a holistic view of supply chain management rather than simply
approaching supply chain management from a business-process and EC viewpoint.
4. What is the strategic value of mobile collaboration in managing supply chains?
Internet Exercises
(Note: URLs may change over time; please check the Internet Exercises on the Turban Web
1. Enter doublediamondsoftware.com/product_overview.htm. Identify all potential B2B
applications and prepare a report about them.
Student reports will vary.
2. Investigate the status of CPFR. Start at vics.org/committees/cpfr, google.com, and yahoo.com.
Also enter supply-chain.org and find information about CPFR. Write a report on the status of
CPFR.
Student reports will vary.
3. Enter i2.com and review its products. Explain how some of the products facilitate collaboration.
This firm offers software products to assist in supply chain collaboration in the following areas:
• Fulfillment Optimization
4. Enter lotus.com and find their collaboration-support products. How do these products support
groups?
Lotus is a division of IBM that offers many software solutions including communication and
collaboration software. The current product offering (listed below) offers several methods of group
work with the ability to store and cross-reference communication using an IBM database solution.
• Lotus Workplace Messaging
• Lotus Notes
5. Enter supplyworks.com and worldchain.com. Examine the functionalities provided for supply
chain improvements (the inventory management aspects).
6. Enter electronicsupplychain.org, then click “Resources.” Find new material on supply chain
automation.
Student reports will vary.
7. Enter future-store.org and find the progress on the use of RFID and other tools in supply
chain improvements in retailing.
Student reports will vary.
Team Assignments and Role Playing
1. Each team is assigned to an organization. The team members will attempt to identify several
supply chains, their components, and the partners involved. Draw the chains and show which parts
can be treated as e-supply chain parts.
Student reports will vary.
2. Each team is assigned to a company. Members will interview key employees in order to find
existing problems in the supply chains. Then the teams will propose solutions using EC
technologies.
Student reports will vary.
Closing Case Questions: HOW WALMART USES EC IN ITS SUPPLY CHAIN
1. Why is Walmart concentrating on supply chain projects?
2. Walmart mandates RFID tags from all its large suppliers. Why are some suppliers not in
compliance?
3. Investigate the options for international customers on the Walmart Web site.
4. Compare walmart.com with target.com, costco.com, kmart.com, and other direct competitors.
Write a report.
Student perceptions will vary.
5. Envision how transaction processing systems (TPSs) are used in Walmart stores. Go to Walmart
and pay with a check. How has EC improved the old way of paying with checks?
Student reports will vary.