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Creating an e-business Opportunity

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Partnerships

 The objective is to create an Application Service Provider  (ASP) for mid-level and smaller suppliers to use supply chain management systems effectively at affordable prices. For an initial fee of $250,000 and monthly subscription fee of $10,000, the supplier will have access to an integrated system which will include applications in the following areas: -

Enterprise resource planning (ERP) systems. 

Supply chain planning (SCP) systems. 

Order management systems (OMS) 

Manufacturing execution systems (MES) 

Warehouse management systems (WMS). 

Transportation management systems (TMS)

in a web-based collaborative environment.

The services provided by the ASP will include:

A state-of-the-art data center operation, 

A dedicated server and data storage environment for each customer, 

Disaster recovery, 

Full management and upgrade/patching of the hosted applications, 

Phone-based customer support for functional end-users and technical super users

The provision and management of the wide area network connection between customer locations and the ASP’s data center(s).  

Some of the services that the hosted applications can provide are: 

Collaborative Demand Planning
Sharing dynamic demand information with supply chain partners
Supply Chain Planning
Modeling complete supply chains, including inter-enterprise dependencies
Can adjust production to respond to demand changes
Supply Chain Monitoring
Notify all supply chain partners of changes in demand and supply using real-time alerts
Identifying alternate sourcing opportunities

 Benefits for Customer 

Subscription model
Choose ‘what you need’ and ‘Pay as you go’
One time connection
Instant access
Cost efficient access to rich functionality
Access to supply chain functionality without building an infrastructure and sharing the cost with other complementary suppliers and OEMs
Rapid deployment 30-90 days

These services will allow the clients of the company to access the best-of-breed systems in automotive Supply Chain Management, as well as access to their collaborators’ systems. This will facilitate the systematic sourcing of direct materials; compress new product introduction cycles, and decrease order-to-delivery cycle times. This will also allow inter-company collaboration for activities such as product development, supply chain planning/execution, and distribution channel management.

Value Added Services

The Company may offer these Services to clients as requested.

Payment Services – Provided in partnership with e-payment marketplace

Credit-Card and Purchase Card

Fund Transfers

Automated Clearinghouse/direct credit order processing

Payment order related transactions between buyer and banks/processor

Other payment related services:

Payment reconciliation

e-check, e-wallet

Risk management

Escrow

International Trade Services - Payment Service for foreign exchange

Letters of Credit for overseas transactions

Search for banks that trade in specific currency

Request exchange rates, and rate options (spot or future)

Compare and select best rate

Request the bank to wire the payment

Fulfillment Services

Shipping method comparison

Cross carrier shipping options

Choice of different shipping methods

Carrier selection

Buyer’s choice of buyer’s or supplier’s carrier shipping options

Shipment processing

Shipment related transactions to supplier, carrier, buyer:  shipment order,

      Shipment tracking

 

This report was completed in October 2000 for the class B2B Electronic Commerce given by Prof. Carmel  in the program of Management Of Global Information Technology at the Kogod School of Business at American University in Washington D.C.