Electronic Commerce Assignment # 2 Date: 17-2-2011

ELECTRONIC HUB
REAL TIME DEMAND DRIVEN MANUFACTURING

SUBMITTED TO:
SIR MUNEER MANSOOR

SUBMITTED BY:
NOTAN KUMAR (BBA-VIII)

COURSE:
ELECTRONIC COMMERCE

DATE:
17-2-2011

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Electronic Commerce Assignment # 2 Date: 17-2-2011

Electronic Hub and Its Uses

E-Hubs as new entrants with new business models pour into the business-to-business space;
it's increasingly difficult to make sense of the landscape. Electronic hubs--Internet-based
intermediaries that host electronic marketplaces and mediate transactions among businesses
—are generating a lot of interest. This paper provides a blueprint of the E-Hubs arena.
Conceptual specification of functional system, comprising the selection of core E-Hubs
services and definition of basic hosting platform of the E-Hubs realization business
development plan, Conceptual framework for Manufacturing Resource Management
System designs based on E-hubs.
Today's business environment is more competitive than ever. With the wide use of E-
commerce, more and more companies which is engaged in E-commerce. In order to remain
competitive, engineering partnership has become an essential concern for Small and
Medium size Enterprises (SMEs), and also for large corporations, since the success of a
large engineering project depends on how well the project owner arranges partnerships with
SMEs. The E-Hubs is a platform through which partnerships can be formed and its projects
or product can be formed and its projects or product can be planned rapidly and effectively.
The E-Hubs stands for Broker services that are given to an impartial web hosted entity that
provides the services to a client who seeks, and a provider who offers. Its application to
manufacturing industry provides a good technology support and a paradigm of cooperative
problem-solving.

Advantages of E-Hubs
E-Hubs: are neutral Internet-based intermediaries that focus on specific industry verticals or
specific business processes, host electronic marketplaces, and use various market-making
mechanisms to mediate any-to-any transactions among businesses. E-Hubs create value by:
(1) Aggregating demand and supply
(2) Increasing marketplace liquidity
(3) Reducing transaction costs”
The E-Hubs will be configurable by offering transparent collaboration templates to each
of these systems. The E-Hubs will also support adequate forms of process and knowledge
sharing, provide

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Electronic Commerce Assignment # 2 Date: 17-2-2011

SME back-office engineering tool support (pure play ASP function) and foster trust
building, contract management and marketing relationships. Particular attention will be
given to the business development of the E-Hubs entity. The E-Hubs business unit is hybrid
in nature (supporting both Web based hosting as well as face to face training and consulting
services). Standard services such as secure payment and contract management will be
franchised in the prototype of the ‘best of breed” suppliers in the market.

Diagram of Changes in Supply Chain

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Electronic Commerce Assignment # 2 Date: 17-2-2011

Real time demand Driven Manufacturing

Demand driven manufacturing involves a synchronized, closed loop between customer
orders, production scheduling, and manufacturing execution; all while simultaneously
coordinating the flow of materials across the supply chain. Creating such a network very
often requires mature Lean initiatives, interoperating across disparate business processes
and technologies, and, not surprisingly, the daring of visionary executives. To benchmark
just how manufacturers are effectively achieving this, Aberdeen has surveyed over 300
manufacturing professionals, correlating operational performance to specific demand driven
manufacturing initiatives.

DDSN

Demand-driven supply networks are driven from the front by customer demand. Instead
products being pushed to market, they are pulled to market by customers. Is the once
dominant force of pushing, merely substituted for a dominant force of pulling? Not entirely.
DDSN does not remove the ability of a company to push product to market. It merely
defines that companies in a supply chain will work more closely to shape market demand by
sharing and collaborating information. In doing so, they will have greater and more timely
visibility into demand. The aim of this collaboration is to better position everyone with the
ability to more closely follow market demand and produce, in tandem, with what the market
wants. Rather than replace the force of pushing, product to market, the DDSN strategy is to
match a pull from customers with an equal and opposite push from supply chain members.
Instead of leading the market from a push and artificially inducing unsustainable market
demand, the concept behind DDSN is to react in tandem with demand. The methodology
behind DDSN is to bring the supply chain eco-system into balance

DDSN-Method
The methods businesses can use to promote adaptability include
1. Monitor economies all over the world to spot new supply bases and markets.
2. Create flexible product designs.
3. Use intermediaries to develop fresh suppliers and logistics infrastructure.
4. Evaluate the needs of ultimate consumers—not just immediate customers.

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Electronic Commerce Assignment # 2 Date: 17-2-2011

5. Determine where companies' products stand in terms of technology and product life
cycles.

DDSN Implementation
Most small and medium businesses do not have the budgets required to deploy all the IT
systems needed to support a DDSN strategy. For this reason, especially in the early stages of
a technological development, uptake is mostly led by enterprise-level early-adopters such as
Wal-Mart. As with many technologies that are in the early stages of development, small and
medium businesses have to wait for the time when adoption increases and costs come down.
Being in this position often means that SMB are rarely in a position to employ many
technologies for their competitive advantage. In the case of DDSN this is not necessarily the
case since it is possible for businesses to adopt a modular approach to building their DDSN
infrastructures.

The Advantages
Agility - The ability to respond quickly to short-term change in the demand and supply
equation and manage external disruptions more effectively.
Adaptability - The ability to adjust the design of the supply chain to meet structural shifts
in markets and modify supply network strategies, products, and technologies.
Alignment - The ability to create shared incentives that aligns the interests of businesses
across the supply chain.

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Diagram of Real Time Demand-Driven Manufacturing

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