E-Fulfillment
Supply Chain Strategic and Design Decision Support System for Hybrid Demands Related to Electronic Enabled Sales Channels (CTI 6066.1)
Researchers:
N. Iliev, Dr. R. Alard, Prof. M. Baertschi, Prof. P. Schönsleben
Academic Partners:
EPFL – LGPP (Project Leaders)
HEVs – Icare (University of Applied Sciences, Wallis)
HEVs – e-cademy (Network of Universities of Applied Sciences for Improving E-Business)
Industrial Partners:
Caran d´Ache
Otto Fischer AG
Swisstex Logistics AG
Firmenich
LauraStar SA
Financed by:
CTI 6066.1
Software:
Adelante Consulting
Motivation:
In all industries, modern enterprises that aim to compete in a global market cannot avoid the strategic decision related to the introduction of one or another form of e‑business in a B2B environment. Existing released online-sales channels show an enormous impact on the efficiency of the upstream (towards supply) logistics of supply chains. The adoption of electronically enabled sales channels should be planned accurately in early planning stages, taking into account the characteristics of companies´ legacies, in particular the company’s traditional sales channels’ business processes. This is mainly due to demand and competition criteria that can differ radically between the two sales channels (electronic and traditional) coexisting within the company as a hybrid sales channel. Typically, behavior and buying patterns of online transactions feature a significant higher volatility linked with smaller purchase order quantities and concurrent higher frequencies. Furthermore, new requirements arise from the integration of applications for online selling into the architecture of the companies’ information systems. Business processes and organizational structures have to be reconfigured for continuous material, information, and capital flows.
Objectives:
The main objective of the project is to provide managers with a tool for estimating upcoming hybrid demand scenarios as well as decision support on the introduction of appropriate online solutions (buy-side, sell-side, direct connections, market places, etc.) based on several product and market criteria. Furthermore, tools for business process analyses will be developed, enabling identification of potential savings with the installation of hybrid sales channels, in order to stabilize decisions on specific online solutions. The main findings will be used to create an E‑transformation handbook and a software prototype, especially for companies making decisions on introducing online sales channels.
The following activities have already been completed:
Following a number of scientific meetings and the conducting of case studies with industry partners, EPFL Lausanne developed the methodology for determining hybrid demand scenarios with the corresponding implications on the supply chain. This tool will be implemented within a marketable software product by HEVs – Icare and disseminated by Adelante, a professional software and consulting partner. A generic model for hybrid procurement and delivery processes has been provided by the ETH Zurich for determining the potential savings of a specific online solution. This easy-to-use tool enables the display of savings on the supplier and customer side separately, also for gaining persuasive splitting of customers´ and suppliers´ investments in, e.g., direct company-to-company links, which in turn enables broader diffusion of these solutions. A supplier selection methodology providing decision support in selecting the most profitable suppliers for direct company-to-company links is also on hand.