1、Practice and Projects in eCommerceVersion 2.0 Krannert Graduate School of Management, Purdue UniversityDelphhi Deelco Elecctronnics Systtems:Globaal Beest PPracttice Sharring & Knnowleedge ManaagemeentIndusstry & Commpetiitivee AnaalysiisOveraall PPerfoormannce aand TTrenddsThe AAuto Partts inndustt

2、ry iincluudes origginall equuipmeent ppartss mannufacctureers (OEM), affter-markket ppartss mannufacctureers, and tiree prooduceers. For an iindusstry faceed wiith llayofffs, plannt iddlinggs annd doownwaard ppricee preessurres, Autoo Parrts iindusstry stilll maaintaainedd a ffair top-linee groowth

3、ratee durring lastt theeir yyearss (seee taable and grapph beelow and Exhibbit 11). HHowevver, theiir prrofitts arre huurtinng accrosss thee mannufaccturiing cchainn (Exxhibiit 1 contt.). The majoor reeasonns arre a declline in vvehiccle pproduuctioon annd thhe coonstaant ccost-cuttting straategyy o

4、f big-threee auutomaakerss. Theese pprobllems let somee suppplieer too fille foor baankruuptcyy or be sshakeen ouut off bussinesss.Leaders Performance in 3 Yr.5.7-48.0489.84ROE (%)-100.9-30847.7Net income growth (%)5.7-7.648.3Sales growth (%)AverageLowHigh3-yr The mmost impoortannt trrendss aree con

5、ncenttrateed onn connsoliidatiion aand gglobaalizaationn. Inntenssifieed coompettitioon iss pusshingg a mmassiive iindusstry conssoliddatioon. NNot oonly OEMss aree redducinng thheir Tie 1 suuppliiers, butt alsso thhese firsst Tiie suuppliiers are cuttting theiir owwn suuppliiers. Biggger firmms woo

6、uld havee abiilityy to provvide “moduule” inssteadd of singgle ppartss, annd allso ccouldd speend mmore on rreseaarch and engiineerring. Aftter aa deccade of ccost cuttting presssed by aautommakerrs, ssuppllierss havve a litttle rroom to mmaneuuver in ddomesstic markket. Insttead, theey arre exxpand

7、ding to iinterrnatiionall marrketss. Thhey hhope thiss divversiifiedd marrket porttfoliio woould havee theem suurvivve unnder softt US ecconommy. E-Bussinesss inn Autto Paarts InduustryyAs faar ass e-ccommeerce is cconceernedd, Tiier 11 firrms wwill heavvily inveest iin ellectrronicc bussinesss, aan

8、d wwill expeect aa lott in retuurn. Outssourccing, inttensee commpetiitionn and moduular systtems havee alll conntribbutedd to majoor auuto ppartss suppplieers uusingg Webb bassed ccollaaboraativee technnologgy orr eveen e-manuufactturinng syystemms. Theyy hoppe thhat ee-bussinesss woould provvide b

9、eneefit overr a vvery widee rannge oof acctiviitiess. Heence coorrdinaationn willl bee strrengttheneed accrosss mulltiplle tiiers of ssuppllierss. Soo thee e-ccommeerce willl conntinuue too be prevvalennt onn thee OEM aand TTier one llevell. Ass a rresullt, aa lott of OEM/Tie11 commpaniies wwill req

10、uuire not onlyy theeir sselvees buut allso ttheirr suppplieers tto beecomee e-bbusinness capaable crosss a widee rannge oof buusineess pproceessess. Buut thhe baarrieers oof immplemmentiing ee-bussinesss caapabiilityy havve noot a commmon uunderrstanndingg yett. Taable 1 exxhibiited the E-buusineess

11、 aappliicatiion iin Auuto PPartss Inddustrry inn a ggenerral llevell. Thhe “AAppliicatiion RRate” in thiss tabble rreferrs too howw manny coompannies in AAuto Partts Inndusttry hhave alreeady impllemennted a ceertaiin E-busiinesss appplicaationns. To daate, the web-baseed syystemms arre thhe maajor

12、e-coommerrce ttechnnologgies usedd in thiss inddustrry. TThesee toools ccoverr thrree mmajorr areeas: manuufactturinng prrocurremennt, collaaboraativee andd enggineeeringg, demannd plannning or IInvenntoryy mannagemment. Tablle 2 is tthe ddetaiiled breaakdowwn off Currrentt E-bbusinness appllicattio

13、n in AAuto Partts Inndusttry.Amongg theese ttradiitionnal ccompeetitoors oof Deelphii, moost oof thhem pput iignorrant effeects on bboth the straategiic, ttactiical and the operratioonal leveel off E-bbusinness. Altthouggh Coovisiint, an oonlinne auuctioon coompanny buuilt by bbig 33, onnly hhas aar

14、ounnd 500 reggisteered comppaniees off thee autto inndusttryss 30,000 suppplierrs. TThe mmajorrity of tthosee memmberss aree priimaryy, orr ttier 1 suppplierrs. AAs thhe riival comppaniees off Dellphi, Aanna Coorp., Fedderall-Moggul CCorp. andd AriivnMeeritoor Innc. ppreseentedd as E-buusineess ppur

15、suuers. Forr exaamplee, Daana hhas aalreaady iimpleementted aa welll-buuilt e-buusineess pprogrram, whicch inncludded ee-Souurce packkage fromm i2 techhnoloogiess andd e-PProcuuremeent bbuyerr sofftwarre frrom AAribaa Incc. Thhis ssysteem efffecttivelly heelps Danaa mannage inveentorry, ddirecct puu

16、rchaasingg andd FreeeMarrketss aucctionn. Annotheer auuto ppartss suppplieer Feederaal Moogul has signned aa conntracct wiith BBlue 292 to iimpleementt a BBlue 292 Web-baseed ennviroonmennt. TThe ccompaany wwill deliiver its EHS Manaagemeent SSysteem viia thhe Innternnet tto Feederaal Mooguls 1550 w

17、oorldwwide faciilitiies. ArviinMerritorr hadd lauuncheed itts e-cateegoryy sysstem provvidinng a new onliine pproduuct lliterraturre orrderiing pproceess ffor iits ccustoomerss, maakingg it the firsst maajor drivve trrain compponennt maanufaacturre too offfer tthis convvenieence. Its reeallyy harrd

18、too juddge wwhichh onee hass mosst addvanttagedd e-ccommeerce systtem. Howeever, Danna Coorp. seemms too be in tthe ffrontt linne inn terrm off apppliannce oof soound e-coommerrce mmodell. Overaall, as tthe conttroveersy relaationnshipps beetweeen OEEMs aand aauto partts suuppliiers groww eveer moore ccompllex, alonng wiith mmore inteeracttion betwween diffferennt tiiers, E-bbusinness is tthougght aas a righht diirecttion and willl proovidee neww strrateggies and toolls f