SCM_B2B
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Volkswagen built its own B2B network called VWGroupSupply.com instead of joining the large automotive industry consortium Covisint. VWGroupSupply.com handles over 90% of Volkswagen Group's global purchasing of automotive and parts components. It offers over 30 online applications to over 35,000 registered suppliers with over 110,000 users. Key applications include an electronic capacity management tool that allows Volkswagen and suppliers to track production plans and material requirements in real-time. This private industrial network model aims to better coordinate trans-organizational supply chain processes compared to a net marketplace.
SCM_B2B
- 1. E-C AND SCMVolkswagen and VWGroupSupply.com 楊淯程 老師 B004020013 羅珮綺 1
- 2. • EC and SCM • Case Study : VWGroupSupply.com • Q&A • Supply Chain Management • E-procurement • The potential benefits of B2B e-commerce • Electronic Polarization • Main Types of Internet-Based B2B Commerce OUTLINE 2
- 3. SUPPLY CHAIN MANAGEMENT • e-Procurement Inquiry, order, confirmation, production, delivery, payment e-Forecast • e-Logistics Logistics monitoring, Cargo Tracking • e-Design collaboration • e-Quality • e-Billing, e-Payment, e-Financing 3
- 4. E-PROCUREMENT • Key technology – EDI • Speed up the procurement operations by using Internet • Changes in relations -- provide visibility 4
- 5. E-PROCUREMENT • Effects： Shorten order cycle (order to delivery) Increase visibility, reduce uncertainty and increase the order fill rate Improve inventory turnover Reduce errors and sluggish materials Reduce the bullwhip effect Reduce lead time Forecast 5
- 6. THE POTENTIAL BENEFITS OF B2B E-COMMERCE • Reduce management costs • Reduce the buyers’ search costs • Reduce inventory costs and inventory minimum standards → By increasing competition among suppliers, enhancing price transparency 6
- 7. THE POTENTIAL BENEFITS OF B2B E-COMMERCE • Reduce transaction costs → Eliminate paperwork and automate some parts of the procurement process • Just in time (JIT) • Reducing the time of product life-cycle → Sharing the designing and producing schedule with suppliers 7
- 8. CHANGES IN RELATIONSHIPS • Problems： Is your customer really a longstanding customer? Will you own his next order? • How to build a close relationship with your customers? 8
- 10. FIXED RELATIONSHIP BETWEEN THE STRUCTURE OF B2 • Services provided by focal firm Services integrated with ERP Independent SCM E-C server • Bilateral relations between focal firm and peripheral manufacturers Web-based Information Exchange Process integration 10
- 11. ELECTRONIC POLARIZATION • Changes in relations Changes the traditional relations between upstream and downstream General goods Net marketplace 11
- 12. ELECTRONIC POLARIZATION • Value chain and value network More close relationship between upstream and downstream Components with specific usage Private industrial networks 12
- 13. TWO MAIN TYPES OF INTERNET-BASED B2B COMMERC 13
- 14. NET MARKETPLACES • A net marketplace will lead to thousands of distributed suppliers get in contact with many main buyers of industrial goods → A「 frictionless 」 commerce 14
- 15. PURE TYPES OF NET MARKETPLACES • Three ways to decide the four types of net marketplace 1. What businesses buy (direct vs. indirect goods) 2. How businesses buy (spot purchasing vs. long-term sourcing) 3. Horizontal market vs. Vertical market 15
- 16. • Electronic catalogs representing products of thousands of direct manufacturers • Most common type of Net marketplace • Offer industrial customers single source to purchase indirect goods on spot basis E-DISTRIBUTORS 16
- 17. E-PROCUREMENT NET MARKETPLACES • Connect hundreds of suppliers of indirect goods • Many-to-many market • Revenues from transaction fees, licensing consultation services and software, network fees 17
- 18. • Connect hundreds to thousands of suppliers and buyers in dynamic, real-time environment • Vertical markets— spot purchasing requirements of large firms in single industry • Many have failed due EXCHANGES 18
- 19. INDUSTRY CONSORTIA • Industry-owned vertical markets • Enable buyers to purchase direct inputs from limited set of invited participants • Emphasize long- term contractual purchasing, stable relationships, 19
- 20. PRIVATE INDUSTRIAL NETWORKS • Web-enabled networks for coordination of trans-organizational business processes (collaborative commerce) • Private trading exchanges (PTXs) • Range in scope from single firm to entire industry 20
- 21. PROCTER & GAMBLE’S PRIVATE INDUSTRIAL NETWORK 21
- 22. CHARACTERISTICS OF PRIVATE INDUSTRIAL NETWORK • Objectives： Efficient purchasing and selling industry-wide Industry-wide resource planning to supplement enterprise-wide resource planning Increasing supply chain visibility Closer buyer-supplier relationships Global scale operations Reducing industry risk by preventing imbalances of supply and demand 22
- 23. CHARACTERISTICS OF PRIVATE INDUSTRIAL NETWORK • Focus on continuous business process coordination (While net marketplace focus on single transaction) • Focus on single sponsoring company that “owns” the network 23
- 24. PRIVATE INDUSTRIAL NETWORKS AND COLLABORATIVE COMMERCE • Forms of collaboration： 1. Collaborative resource planning, forecasting, and replenishment (CPFR) 2. Demand chain visibility 3. Marketing coordination and product design 24
- 25. PIECES OF THE COLLABORATIVE COMMERCE PUZZLE 25
- 26. IMPLEMENTATION BARRIERS • Concerns about sharing of proprietary, sensitive data • Integration of private industrial networks into existing ERP systems and EDI networks difficult, expensive • Requires change in mindset and behavior of employees and suppliers -- All participants lose some independence 26
- 27. Case Study 27
- 28. INTRODUCTION Founded Berlin, Germany (28 May 1937) Headquarters Wolfsburg, Germany Number of locations 100 production facilities across 27 countries Employees 572,800 (2013) Divisions Automotive Division Financial Services Division Total assets €323.4 billion (2013) 28
- 29. SALES AND MARKET SHARE Top 3 Automakers EU27, 2013 Group Units share Volkswagen 2,957,653 25.0 PSA 1,311,406 11.1 RENAULT 1,076,367 10.4 Top 3 automakers 2013 by EU27 new passenger car volume, based on ACEA data Top 3 Automakers Global, 2012 Group Units Toyota 10,104,424 G.M. 9,285,425 Volkswagen 9,254,742 Top 3 automakers 2012 by global volume, based on OICA data. 29
- 31. COMPANY STRUCTURE 商務車 福斯商務汽車（Volkswagen-Nutzfahrzeuge） 斯堪尼亞（Scania） MAN SE 機車 杜卡迪 金融服務 福斯金融服務公司 福斯銀行 Europcar IT服務業 gedas 體育業務 爾夫斯堡足球俱樂部(VfL Wolfsburg) 31
- 32. VOLKSWAGEN AND ITS B2B MODEL Instead of participate in Covisint (giant automotive industry consortium back by most of the major car makers) , Volkswagen build its own B2B Network, VWGroupSupply.com. 32
- 33. VWGROUPSUPPLY.COM • Started in 2000. • Handling over 90% of all global purchasing for Volkswagen Group. (automotive and parts components) 33
- 34. VWGROUPSUPPLY.COM • Initial seven applications, offers over 30 different online applications ( RFQ, Contract negotiations., Catalog purchases etc.) • Online catalog contains about 2.1 million items from over 530 suppliers , value totaling $320 million. 34
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- 37. ECAP - ELECTRONIC CAPACITY MANAGEMENT • An application that alerts VW and its suppliers to changes in production trends in order to maintain production at desired levels. • Allows suppliers to track VW production plans and material requirements in real time online. • Maintains information on over 400 suppliers and 4,000 critical parts. 37
- 38. ECAP - ADVANTAGES • VW is able to meet any sudden increase in demand and avoid production bottlenecks • Suppliers can avoid overproduction of supplies by reducing their output and avoid over supplying VW with parts 38
- 39. CURRENT SITUATION • Over 35,000 registered suppliers, with over 110,000 users. • Limited to suppliers who've done business with companies in the Volkswagen Group and authorized potential new suppliers • Maintains a common data repository with details on each supplier concerning procurement, logistics, production, quality, technical design, and finance.39
- 40. QUESTIONS FOR YOU • Why don’t Volkswagen join Covisint as Fords and other car makers do? • What kind of services do you think VWGroupSupply.com will offer? • What kind of B2B is VWGroupSupply.com? And what kind is Covisint? (Net Market/ Private Industrial Networks) 40