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17 Domain No. Key Issues Characteristics Internal (Supply Chain Planning) Internal (Supply Chain Execution) Outbound (BtoB e-fullfillment) Internal (Supply Chain Execution) Outbound (BtoB e-fullfillment) Internal/ outbound/ inbound (Business Strategy) Increasing Variety of Products Decreasing Product Life Cycles Product offering of an organization is increasing as new products are developed and offered in the market. The speed of product development has gotten faster based on the efficient use of innovative technologies. Rapidly Customer demands are changing constantly changing based customer needs on their wants and needs. Fragmentation of Supply Chain Ownership 5 Market Expansion 6 Difficulty in Strategy Execution Related Problems (System/Process Effects) -Product related information is not accumulated, reused, and shared well throughout the organization. -Organizations need to provide service that increases profitability based on service needs of segmented customer group. -Organizations are not responding fast enough to introduce new products in the market. This requires significant improvement in business processes. -Organizations need to conduct the market research and analysis in order to better understand what the customer wants. -Organizations need to develop optimized logistics network that meets differentiated customer requirements. -Organizations should conduct demand planning based on real demand and provide customization to reduce lead- time and inventory level. Various processes of SCM are controlled/manipulated -Local optimization in supply chain from by different teams in an independent perspective organization. Thus, the -Conflicts exist among different teams in an conflicts exist in terms of organization. decision-making and task execution. As the scope of market expands, there is a greater need for collaboration and management control. Due to the management complexity in an organization, it becomes more difficult to execute business strategies in business operations. -It is becoming more difficult to coordinate the business activities of an organization at a global scope. -Strategy execution has an implication on many entities in an organization. Thus, strategy should be set in a careful manner. But, organizations usually don't consider the overall implications. -Organizations need to develop supply chain-wide technology strategy. Internal/ outbound/ inbound (Supply Chain Monitoring) 7 Weakness in Control/ Integration If information flow and -Inefficiency in process of logistics business operations are not -Integration with other process and establishment monitored and controlled of partnership with trading partners. efficiently, then it results -There is a need to apply measures to evaluate in performance decrease. supply chain performance. Internal/ outbound/ inbound (IT Infrastructure/ Architecture &BtoB 8 Information Quality/data integrity The quality of the information provided to each business process determines the quality of the work output. -Reliable information is not often provided to different teams for executing the business tasks in an organization. -The errors in information seriously jeopardize the execution of business activities in SCM. -There is a lack of real time information support.

18 e-procuremen t) Internal/ outbound/ inbound (Supply Chain Execution) Internal/ Outbound (BtoB e-fullfillment & Supply Chain Execution) 9 10 Management Efficiency (Decision Making) Lack of Organizational Collaboration The management style and structure determines the efficiency of the business processes and decision-making. Organization collaboration affects the organizational dynamics and strengthens the links among the various teams in an organization and relationships with external business partners. -Management is not making the important decisions on a timely basis. -Decision-making is not optimal in terms of decision quality. Prompt decision-making is important in achieving the high performance. -Information sharing is not done on a real time basis. -Due to the structural and management differences among different organizations, information sharing is at a difficulty with external business entities. -Organizations need to reduce costs through strategic management of suppliers.

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