Often companies who have highly configurable products or services, such as Dell or in the services businesses, insurance and healthcare companies, need to provide customers with the ability to customize products in real time to their needs. Product configurators today are being used in e-business systems in these industries to provide suppliers with advance visibility of customer demand while capturing orders accurately at the same time (Aurich, Wolf, Siener, Schweitzer, 2009). The quote-to-order process encompasses creating customized products and services while staying within the constraints of profitability for an enterprise (Sawik, 2011). Studies also indicate the greater the level of system integration in these process areas, the higher the level of Return on Investment (ROI) achieved by companies who commit to making their systems work with each other in real time (Das, 2011). The greater the accuracy and velocity of information in the build-to-order, configure-to-order and engineer-to-order workflows of companies pursuing a mass customization strategy, the higher the level of customer satisfaction as well, as order errors are significantly reduced, which in turn reduced order re-work (Sawik, 2011). The build-to-order process workflow has proven to be one that can be accelerated and made more accurate through the use of technologies to streamline each step in the quoting, pricing, configuration, production, supply chain and fulfillment processes (Aurich, Wolf, Siener, Schweitzer, 2009).
Another process area is reverse logistics, the process by which companies look to streamline their supply chains by having process, information flow and returned goods workflows optimized with suppliers (Hernandez, Poler, Mula, Lario, 2011). This is an e-business that has taken decades to mature as it is inherently complex, and also requires supply chain collaboration to a level that other supply processes do not (Turban, King, Viehland, & Lee, 2006). Reverse logistics...
Reverse logistics is also made possible due to the technology innovations in pricing, order management, supply chain management workflows including stock balancing and traceability. All of these processes are automated using transaction-based systems that rely on the Web as part of their foundation. The process-based innovation in e-business and reverse logistics is attributable to the selective, planned use of technologies to make them more accurate, agile and secure (Das, 2011).
Conclusion
Innovation and technology continue to be the catalyst of exceptional advances in the core process and strategy areas of e-business and SCM functions within enterprises. This analysis has shown how when technologies are selectively applied to core process areas, enterprise can gain greater competitive advantage and insight into their markets than would otherwise be the case.
References
JC Aurich, N Wolf, M Siener, & E. Schweitzer. (2009). Configuration of product-service systems. Journal of Manufacturing Technology Management, 20(5), 591-605.
Barrett, J. (2007, November). Demand-Driven is an Operational Strategy. Industrial Management, 49(6), 14-19,5.
Das, K. (2011). A quality integrated strategic level global supply chain model. International Journal of Production Research, 49(1), 5.
Hernandez, J., Poler, R., Mula, J., & Lario, F. (2011). The Reverse Logistic Process of an Automobile Supply Chain Network Supported by a Collaborative Decision-Making Model. Group Decision and Negotiation, 20(1), 79-114.
Sawik, T.. (2011). Selection of a dynamic supply portfolio in make-to-order environment with risks. Computers & Operations Research, 38(4), 782.
Turban, Efraim, King, David,…
