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Chapter 6  Supply chain management

Flexibility in adapting to new business requirements is a key capability of e‑SCM systems. 

For example, in 2006, digital business system supplier and integrator SAP (

www.sap.com

) 

explained the three key capabilities of its SCM solution as:

● 

Synchronise supply to demand – Balance push and pull network planning processes. 

Replenish inventory and execute production based on actual demand.

● 

Sense and respond with an adaptive supply chain network – Drive distribution, transporta‑

tion, and logistics processes that are integrated with  real‑  time planning processes.

● 

Provide   network-  wide visibility, collaboration, and analytics – Monitor and analyse your 

extended supply chain.

Source: www.sap.com/solutions/business‑suite/scm (no longer available).

An alternative perspective is to look at the benefits that technology can deliver to customers 

at the end of the supply chain. For the B2B company these could include:

● 

Increased convenience through 24 hours a day, 7 days a week, 365 days a year ordering.

● 

Increased choice of supplier leading to lower costs.

● 

Faster lead times and lower costs through reduced inventory holding.

● 

The facility to tailor products more readily.

● 

Increased information about products and transactions.

There are two alternative, contradictory implications of supply chains becoming elec‑

tronically mediated networks. Malone et al. (1987) and Steinfield et al. (1996) suggest that 

networks may foster electronic marketplaces that are characterised by more ephemeral rela‑

tionships. In other words, since it is easier to form an electronically mediated relationship, it 

are shown via Google Maps, and details are provided 

on opening hours, as well as driving directions, and the 

option to set this as your store. You can then use the 

search icon to search for stock held at that store. The 

stock checker works just like the machines in the Argos 

stores. Each product page comes with some detailed 

review information, which makes the app very useful for 

people to do some extra product research while in the 

store. Once a product is selected, the reservation pro‑

cess is straightforward.

Argos is well known for catalogues, which are also 

part of retail multichannel strategy since products fea‑

tured can encourage purchase both in‑store and on the 

web. Argos release two catalogues every year, each with 

a print run of 18 million. David Tarbuck explains how the 

catalogue fits into the multichannel strategy works:

We have large numbers of people who have our cata-

logue in their lounges, on their coffee tables, and this 

gives us a presence in people’s homes.

Catalogues are often the starting point for custom-

ers shopping with Argos, they will flick through the 

catalogue, or browse the website at the same time.

We have over 11,000 products online that aren’t in 

the catalogue, so people will come online to check this 

and for latest offers, so catalogues are used in conjunc-

tion with other channels. With catalogues or any other 

channel, it’s all about talking to customers and working 

with them in whichever way they want to interact with us.

Tarbuck believes that the structure and focus of the 

team has also been important to success. He says:

We have a multichannel team, and I head up the 

development team and the operation of the website, 

overseeing online strategy.

We have e-commerce, marketing and commercial 

teams who respond to the trading side of the busi-

ness, and make sure the various promotional cam-

paigns are joined up, and there is consistency across 

channels. We’ve had a  self-  contained  Internet- 

 focussed team in place for the last ten years, and this 

dedicated team has been very closely related to mar-

keting and other areas of the business.