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should be obvious. e-Commerce
is more than selling over the Internet.
Effective e-Commerce is
a spectrum of activities that potentially touch every one of your core
business processes: marketing and sales, resource and capacity planning,
inventory replenishment, billing and accounting, procurement, engineering
and supplier collaboration, etc. The way you do business tomorrow -
for better or for worse - will be e-Commerce.
Here are some common sense pointers for making your e-Commerce efforts
about delivery infrastructures now - not later
who reap the rewards of e-selling will be those who thought about
is not for sissies
foundation of e-Commerce is c-Commerce, collaborating up, down and
across the value-chain. Those who get serious about collaboration
with their distribution channels, with their suppliers and engineering
partners, with all the members of their extended supply chain, will reap
the benefits of competitive advantage. Those that don't risk falling
further and further behind.
is not old-fashioned
doesn't make itself, and resources don't appear out of thin air.
We're all for visual factories - even visual supply chains. But
linked processes and synchronized production only work when there is
material available to pull through the chain, and when there is sufficient
capacity to make the volume required. Make sure you have functioning
planning processes like:
Chain Sales and Operations Planning
capacity planning techniques like Rough Cut Capacity Planning
Scheduling at key points in the supply chain
material planning techniques, either in detail or in aggregate depending
on your processes.
e-Procurement on relationships not auctions
big payoff in purchasing is in direct materials - which for most of our
clients averages 40 to 80% of product cost - a lot of which are either
high cost or high volume, and typically not commodities. If the
focus of your purchasing efforts is buying office supplies and MRO
materials more efficiently, you are missing the boat. The coming
wave of e-Procurement, specifically focused on direct materials, committed
relationships, and supplier scheduling and releasing, will be private
enterprise exchanges, and you need to find out about them now, not
The Highest Value Functions Online First
have limited resources. The same is true of your value-chain
partners. Bring on the functions that give you the "biggest
bang for the buck" first and fastest.
you aren't getting the results you'd like from your e-Commerce or resource
planning efforts, ask yourself:
we really willing to do what is necessary to make e-Commerce work -
even if it means focusing on internal processes first?
we willing to make an investment in people and relationships at least
equal to any possible software investment?
we willing to put time into equipping our people to really run the
business in a different way?
we willing to invest executive time in understanding what kinds of
transformations we can reasonably make?
you are willing to do these things, we'd like to hear from you. If
you are convinced you need some new directions but need help understanding
your choices, call us. We have some proven techniques for getting
Gray 1 603 778-9211
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