Case Study ON Bay Networks Inc. Bay network Inc. Uses the internet to link with its suppliers. The driving force behind Bay Network extranet, however, was the company’s need to link its supply chain systems with its distributers. For years we have wanted daily point-of-sale information from our distributers; says Maynard Webb, CIO of the Santa Clara, California, manufacture of networking devices. With such data, the company new its manufacturing unit could match production levels better to demand. After meeting with several distributers, Webb discovered that these business partners had the technical resources to provide the data, but needed a link between their sales tracking systems and Way Networks supply chain systems. In, effects, Bay Networks wanted to have a look into its partners ordering systems and it’s devised an extranet to do so. Partner Net, the company’s extranet, is a conduit for Bay Networks to give distributers the timely sales data they need. But Webb still had to cajole distributors in to giving them data back, because some tracked their sales weekly, not yet daily. Moving from weekly to daily sales reports required distributors to do some order-system recording. They were a little hesitant to do the extra work, Webb says. But by pointing out that Partner Net would give distributers critical information such as Bay Networks’ production capacity and inventory data, Webb persuaded them to accept the system and do the recording. When taking customer orders, distributers now can check Bay Networks inventory status to see how many routers are available for immediate shipping, for example, and how many
will be available within a week. Enabling distributers to track shipment status with Federal Express Corp.Did not hurt either. ‘The real issue is that {distributers} have to believe that this will radically change the business for the better,’ Webb says, ‘for themselves as well as for Bay Networks.’ On the other end of the supply chain, Bay Networks can see how many orders have been placed so it can step up production during peak sales periods. The result, Webb says, is that customers get their order faster. Both distributers and Bay Networks benefit from that. ‘When you are going outsiders access to sensitive data such as production schedules for the first time, security is the major concern,’ he says.to address that issue, Bay Network’ distributors and suppliers each have a unique account number and passwords that give them to access to the system, but only to the information pertaining to their own business. For example, a distributer can access to the status of its own backlog orders, but not that of its competitors. Bay Networks uses SAP’s ERP system with an Oracle database for its supply chain transactions. In order to capture Way Networks ’ERP’s data, most production scheduling information from Partner Net in to a spread sheet program. They then import that data in to their own back office database systems. The ideal method, says Webb, would be a direct transfer of data from Partner Net to a supplier’s back-end systems. To accomplish that, Way Networks is testing SAP’s new release of the ERP system, R/3, release 3.1, which is internet capable. Not all of Way Networks’ business partners, however, are equipped with SAP. Those that are do not require a mechanism for translating Bay Networks’ R/3 data protocol to their own. A potential solution to that problem may come from Actra Business Systems, a joint venture formed in 1996 between Netscape Communications and GEIS. Actra sells software that
converts conventional EDI software in to internet formats such as the secure stocks layer encryption protocol, allowing EDI users to do business on the internet. It is still very early in the game, though, and CIOs may have to find the right solution by trial and error, according to Webb. ‘You have to be willing to throw some stuff out,’ he says, ‘because this stuff is in its infancy and changing so fast.’ Qu-1 Discuss the advantages of the E-SCM solution deployed by Bay Networks for its distributers? Answer- Bay network Inc. uses the internet to link with its suppliers. It is called the Electronic-Supply Chain Management (E-SCM) technique. There is the following advantage of the ESCM solution deployed by Bey Networks for its distributers: By the using of E-SCM, the Bey Networks has able to know daily point-of-sales information from its distributers. The Bay Networks can match production level better to the demand. When taking customer orders, distributers can check Bay Networks inventory status to see how many will be available within a week. It is helpful for both Way Networks and distributers if any radical change in the business has taken place. Bay Networks can see how many orders have been placed so it can step up production during peak sales period. There is no security problem because distributers and suppliers each have a unique account and password for access to information.
Qu-2 What are the problems associated with the proper implementation of E-SCM. Find solution to overcome these problems? Answer-Problems associated with E-SCM:
The electronic technique of supply chain used by Bay Network is very good because it provides all the information related to production and demand at the time. But some problems are associated with this, which are as following: The distributers and suppliers may be share the account number and password which is made for the security purpose. Due to this the information may be leak outside of the organization and the competitor may take the advantage of it. In order to capture Bay Networks, ERP data most suppliers has started to use their browsers to download production scheduling information from Partner Net(work as conduit) in to a spreads sheet program. Solution to overcome the problems: There are the following ways to overcome the problems: The security system should be tighter. The account should be distributed only few big distributers and suppliers. A potential solution for the above problem has been find out by Actra Business Systems in 1996, which has launched a software, in to internet formats such as the secure sockets layer encryption protocol, allowing EDI users to do business on the Internet.
