| dc.description.abstract | In the past there are many industries that have tried to put into much effort into integrating their supply chain processes in order to create more efficient supply chain operations. These operations have been given different names; e.g., Quick Response, Electronic Data Interchange (EDI), Short-Cycle Manufacturing, Vendor Managed Inventory, Continuous-replenishment planning (CRP), and Efficient Consumer Response (ECR). However, these operations often fail to realize their expectations because they lack the ability to truly connect supply chain members.
In this case study, the case company implemented the Oracle ERP in 2008 when they started to conduct B2B data exchange with its supply chain members. After then, they could control every single order accurately and receive supplier response promptly. However, insufficient information provided by suppliers made accurate forecasts impossible. For each quarter, it had to reply on quarterly information exchange and communication among the relevant operators to estimate and adjust the amount of production and procurement, for reducing inventory and avoiding materials shortage. In other words, it tried to avoid the occurrence of bullwhip effect. However, resolving the difference between supply and demand requires collaborative planning, forecasting and replenishment, and minimizes the uncertainties from both the supply and demand sides. In so doing, more significant benefits can be realized, such as lower inventory, increased sales, improved collaboration, and greater cash flow and returns on investment.
This research focuses on the entire supply chain members of the case company, and analyzes how to share the information within the supply chain and how to integrate all data effectively. The study discusses the needed upgrade in the company’s CPFR process and how the uncertainties in supply chain can be reduced. The study shows that through sharing demand forecast information and being able to react to any demand change, the case company can keep much lower inventories, reduce the bullwhip effect, and thereby create a win-win situation for the company and its suppliers.
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