SCM Technologies and their applicability in the SC operations

Abstract: Supply chain management is a popular concept in business theory. Its research results are widely used in practice, too. During the development of supply chain management (SCM) useful practices have emerged. These practices or management tools aim at enhance supply chain (SC) effectiveness and/or efficiency by introducing new planning, controlling and monitoring methods. The success of their implementation, however, depends on several factors which have to be analyzed before making decisions on the application. Technology also plays an important role in the success of supply chain management. Even though the supply chain concept pre-dates the Internet, only through the use of web-based software and communication it can truly reach its full potential. Before the Internet, companies were limited because they were not able to receive or to send updates, feedback, or other important information in a timely fashion. Using the Internet to handle most of the elements involved in supply change management, including procurement and communication, makes the exchange of data and the running of the supply chain faster. Internet based Supply Chain Management is the solution that supports collaboration in the Supply Chain as the foundation for gaining competitive advantage and maintain market share. There are many Web technologies necessary for the design and implementation of a Web based SCM application, their employment being determined by the SC partners information systems and applications and the level of integration needed. Keywords: Cloud based SCM, mSCM, RFID, eSCM, GSCM

1.0 INTRODUCTION 1.1 General

A Supply Chain is a network of suppliers, manufacturers, warehouses, distributors and retailers who, through coordinated plans and activities, develop products by converting raw materials to finished goods. Supply Chain Management (SCM) involves various approaches used to integrate suppliers, manufacturers and distributors in performing their functions: materials procurement, materials transformation in intermediate and finished products, the distribution of these products to distribution centers and from here to point of sales and to the final customer. The management of Supply Chain assumes to provide the appropriate strategy to deliver

products and services to customers in the right quantities, to the right locations and at the right time to meet the required service level with minimal cost. Through collaboration, information sharing and usage of internal information systems and Internet technologies, companies can create efficient value systems, and get competitive advantage. The Internet has brought new opportunities for the Supply Chain field. Companies have to adapt their Supply Chain to the Internet and to connect through Web technologies with their business partners to create Supply Chain networks.

2.0 CLOUD-BASED SUPPLY CHAIN MANAGEMENT (SCM)

Enterprise Application Software companies have been toying with a transition into the cloud for the past few years and more are starting to take the dive. Once thought of as a technology that would replace legacy systems, the cloud is now viewed as a complimentary delivery option, allowing for two types of next generation applications. The successes of cloud-based companies such as Salesforce.com have proven that cloud enterprise applications are not only cost cutting, but sustainable and innovative. Given this success, more companies are apt to start focusing on the cloud as their application delivery method of choice. The growth of cloud-promoting technologies (faster internet connectivity, mobile technology, net books, social networking, etc.) is helping to spur increased interest in cloud technology. This is evidenced through CDC Softwares recent acquisition of Trade Beam, a provider of on-demand software-as-a-service (SaaS) supply chain visibility and global trade management solutions, as well as e-Commerce giant GSI Commerces recent acquisition of Vendor Net, a provider of e-commerce SCMs, to expand its multi-channel expertise. 2.1 What is an SCM Cloud? The SCM cloud is a set of services that provide SCM functions to any cloud user in an efficient, scalable, reliable and secure way. It abstracts the inherent details of package implementation and the challenges associated with integrating these packages with the other enterprise applications. This enables the user to get a simplified view of SCM functions (rather than SCM applications) like order management, warehouse management, demand forecasting etc. A user merely signs up on the cloud, subscribes to the necessary SCM functions, and starts using it. It is that simple. Figure 1 provides an illustration of the layer of abstraction provided by the SCM functions that leverage machine instances from the infrastructure cloud. Figure 2 presents a detailed view of various tiers of SCM applications consisting of a variety of associated vendor-specific hardware and software components. Traditionally, retailers must go through a laborious and time-consuming exercise to find a suitable application that can place, manage and fulfill orders. They need to choose a product after evaluating many of the best-of-breed solutions and accommodate technology constraints that come with it. They must then configure the product to meet business logic, integrate the application with other applications, test, procure the hardware to host the application stack, and finally, go live. After this comes the additional challenge of post-production maintenance.

Figure 1 SCM Cloud providing an abstraction of SCM functions

F igure2 Detailed view of a multi-tiered SCM application

This is an onerous process considering the fact that most retailers are only asking for a simple mechanism to capture, manage and fulfill orders. Only retailers with mature IT departments and big budgets can sustain the long process of software implementation. However, with the advent of cloud computing, a layer of abstraction can be built to mask the inherent details to have an order management system offering in a more economical way. With SCM cloud, Figure 3 gets transformed to Figure 3 - a simple SCM function instance for order management. This model also works well for small businesses which lack dedicated IT departments and cannot afford a data center. The cloud also provides these abstractions in a scalable, reliable and secure way which aligns the solution in line with the business growth pattern. In sluggish economic conditions, downsizing the environment also becomes equally easy.

Figure 3 SCM function instance for order management.

2.2 Implementing an SCM Cloud

Although the enormous benefits of an SCM cloud are obvious, ranging from scalability and cost control and requirement-based expansion and reduction in capacity, much still needs to be done in terms of streamlining the process. The following are some key factors that must fall in place for SCM cloud implementation to succeed. The SCM Cloud can provide a win-win situation for all participants infrastructure vendors, SCM product vendors, service providers, and users. In the reverse order, users benefit because of reduced CAPEX and huge OPEX savings, service providers benefit because they are the builders of such logical groups of functions, SCM product vendors and infrastructure vendors gain because the SCM cloud opens up the gates to a legion of users who would have otherwise resorted to age-old ledgering and suffered growth. Further, it is possible for developers to come up with their own ideas and host them as a service on the cloud and get paid when users sign up and use their services. A good example is a rule-based engine for demand forecasting. Users can prepare the inputs for a forecasting function and use it only once every quarter to generate the demand forecast and unplug from the forecasting function. If Vendor A's forecasting service does not work well, user can easily switch over to Vendor B the next time. In essence, there is a lot of potential in Cloud Computing for everyone including IT service providers. It is therefore imperative to adapt to the change in the way IT applications are packaged, configured, hosted and used and accept the challenges

this notion has to offer and strategically work towards solving them. Sooner or later this is a cold that everyone ought to catch and when they do, they will want the luxury of proactive and reactive environments for their applications but at a cheaper price. This view of the cloud makes us, the service providers the best ones to take the cudgel to implement the CLOUD. We must therefore prepare a pool of requirements and a pool of plausible technologies and create a layer of abstraction to free the user from choosing packages, best-of-breed solutions, databases, integration middleware, and infrastructure and think only about the required functionality and how much he can/should pay for it. Here is a simplified tiered-illustration of SCM cloud components.

Figure4 illustration of SCM cloud components Manufacturing companies around the world, with their inherent penchant for low IT budget, are paying much closer attention to cloud computing and its potential value to supply chain processes - from sourcing to after-sale service. Supply Chain Management space is the ideal breeding ground for cloud computing. Let's start with procurement. Enterprise applications in supply chain space, and especially in procurement domain, are mostly about B2B or inter-company coordination and collaboration among hundreds of supplier companies on a global scale. This geographical spread and need for collaboration makes it an ideal candidate for Cloud computing. One of the main value-proposition from Cloud computing is said to be reduction in 'total cost of ownership' and it is also the most commonly cited success metric in sourcing and procurement. Now let's move to Supply Chain Planning. Production planning and forecasting are not normally the core components of companies' ERP systems. Clients therefore can run one vendor's ERP application and can leverage another's best-of-breed planning/ forecasting application via the Internet. Now coming to Supply Chain Execution and visibility, Control Tower Systems, the most recent addition to supply chain visibility tools is now available in cloud. Control Tower technology for supply chain, in simple terms, is a Single-Version of Supply Chain Truth. A platform that makes that truth available across the value chain in an

agile manner and that connect trading partners and service providers to create a vibrant, "always on" electronic community. This inevitable and imminent adoption of cloud is going to bring about a paradigm shift in the way enterprise applications are dealt within manufacturing industry. The supply chain application vendors who are quick to internalize this change are going to hugely benefit from this.

3.0 MOBILE SUPPLY CHAIN MANAGEMENT TECHNOLOGIES AND APPLICATIONS

(mSCM)-

KEY

Modern supply chain management is often based on extensive usage of information communication technologies. In order to improve the quality of service and goods and provide more efficient work and better communication and coordination among all participants in the supply chain, in the recent years a special emphasis was put on the implementation of mobile devices and wireless communication systems. Also, the main characteristics and applications of mobile supply chain management are presented. The most obvious advantage of using modern wireless and mobile technologies in supply chain management is in providing highly efficient, fast and accurate means of collecting and sharing information and data on the movement of goods and other important events. These features make it easier to control and monitor work activities and provide updated information on the status process, which enables a company to establish and maintain complex adaptive supply chain network.

3.1 Mobile Supply Chain Management

Mobile supply chain management (mSCM) is defined as the use of mobile devices and applications to assist in the efficient and effective management of various activities in modern supply chains, contributing to better company's operations by reducing costs, faster response system and achieving competitive advantage. The most obvious advantage of using wireless and mobile technologies in the management of modern supply chains is that companies are now able to provide customer service no matter where they are and at a time that best suits them. In addition, mobile applications for supply chain management can be used to improve the business processes of different business functions by ensuring efficient flow and exchange of information and goods between the various supply chain activities, from product concept, its design, manufacturing, sales, customer service, and all by the end of its life cycle, i.e. use. Mobile systems for supply chain management integrate software applications with mobile devices (e.g. mobile phones, PDAs, pocket computers, etc.), in order to provide flexibility for users to work in the wireless computing environment from any location (e.g. shop or warehouse, using mobile devices and possibly other wireless units (e.g. RFID readers)). Mobile devices connect to the company server via a wireless infrastructure (mobile network or WiFiWLAN), which enables data and information exchange between different functions within a company and along the supply chain. In this way, a software application for mobile supply chain management enables intra-company and inter-company business systems, enabling participants in the supply chain to realize business activities such as online transactions, share and exchange of updated information, providing customer service, logistics and transport management, warehouse management, and so on.

Application areas Information Information management i.e. fast and efficient reception, transfer and exchange of information is one of the key aspects of mobile supply chain management. Mobile inventory management Accurate and efficient inventory management, based on the solutions with bar codes or RFID tags, is used to track the level of the stocks of those products that are critical for the company. In this way, companies can reduce the problems of duplication or lack of entries, and enable people to know exactly where some item is. Mobile sale - Using mobile systems for supply chain management, retailers can increase sales by providing the right amount of right products at the right place at the right time. The system improves customer satisfaction by informing them about the status of their orders and reducing the probability of delays or incomplete orders. Tracking goods in supply chains By using GPS systems, mobile devices and networks, now is possible to monitor the progress of each transport vehicle in real time efficiently, and thus to know exactly its position and time of arrival at the final destination, and the type and quantity of goods carried by transporter, thus opening to possibilities of transport optimization and lowering the costs. 4.0 RFID RFID (Radio Frequency Identification) is a technology which uses radio waves to communicate and exchange data between a reader and tags attached to an object, for purposes of identification and tracking. RFID tags are being developed to replace bar codes. Bar codes have a number of limitations: they require optical visibility with scanner, are printed on paper and can easily be tear, soil or lose, only identify the manufacturer and product, but not individual items, etc. Each RFID tag has a unique identifier, assigned to a particular product or packaging. Depending on whether they have their own power supply (battery) or not, tags are divided into active (with own power supply) and passive. Reader through the electromagnetic (radio) waves reads data from the tag and forwards them to the system for data exchange and management for further processing. Active RFID tag reading range is 10-100 m, and for passive ones is 10 mm to 5 m. Tags are becoming smaller and smaller (Hitachi has made RFID chip measuring 0,05 x 0,05 mm, which can store 38-digit number). Compared with its predecessor, the bar code technology, RFID has the following advantages: does not require optical visibility for reading, can store a larger amount of data than bar code (e.g. it is possible to keep the information on each individual product, not just a class of type) smaller size, come in many forms and shapes,

Much safer. Given that the electronic nature, may use content protection code, so it's not easy to read and forge the content data is stored in the RFID tag can be changed or added, resistant for work in dangerous environments, a large number of RFID tags can be read almost instantaneously, rapid response system,

Cost reduction (in the long run), and so on.

Figure 5 The structure of RFID-based Chain RFID technology has increasingly been applied in different areas of the economy and parts of the supply chain, such as: the production, receipt and issue of goods, transportation, distribution, warehouse operations, retail, etc. Some of the world largest retailers (e.g. Wal-Mart in the U.S., Tesco in the UK) and government institutions (US Ministry of Defense) bind all of its suppliers to introduce RFID technology.

4.1 RFID Applications in Supply Chain Management

There are as many RFID applications as there are businesses. Some RFID applications have been around for decades, others are just starting to emerge. RFID, itself, is not a new technology; however, it is being used in many new and different ways. The roots of RFID technology can be traced back to World War II when radio waves were used to identify friendly aircrafts; in the 1970s New York Port Authority introduced an RFID device used for toll collection. While RFID applications used earlier are still around today, many more RFID applications have emerged since then. Today, the largest RFID application aids companies and governments in supply chain management. RFID is being used to manage products through production, distribution and retail. Manufacturers can especially benefit from implementing RFID applications in supply chains because they can decrease costs associated with product tracking and inventory management and increase the accuracy and timeliness of inventory data. Experts say that early adaptors of RFID applications in supply chains have seen a significant increase in revenue. RFID Applications in the Distribution Chain: RFID Applications can be used to monitor and manage the movement of the finished products throughout a supply chain. RFDI tags can be attached directly to the items and materials or they can be attached to the containers that carry them. Pallets, trailers, totes, carts, cargo containers, and reusable transport items can all be tagged. Readers placed throughout a facility can monitor movement and location of inventory, thus providing real time data. This can be within a warehouse, a freight yard or within a retail location. RFID applications in the supply chain enable more frequent and accurate inventory counts RFID applications in the supply chain can also decrease costs associated with inventory counting

In addition, RFID applications in fleet management have demonstrated significant ROI. RFID applications in fleet management enable a more cost-effective long-range tracking solution, global tracking of containers and cargo, reliable tracking of capital and inventory assets during transportation and increased security. By placing RFID tags on long range vehicles, trailers or other mobile assets, companies can gain visibility into their business assets utilization. RFID Applications in Retail and Product Marketing: As in the distribution chain, RFID application in retail can greatly aid in reducing the cost of keeping accurate inventory data. With fewer people and less time, retailers can keep accurate inventories. Associates can spend more time providing service to customers rather than counting product. RFID Applications in retail can greatly aid in ensuring proper product mix and availability are maintained for customers. The accuracy of the real time inventory data that is provided by RFID applications, enables product marketing managers to ensure that hot selling items are properly stocked and to ensure replenishment order for these items are placed as quickly as possible. Slow moving items can be quickly identified. This allows product marketing managers to take corrective action to goose demand through promotional or advertising activity before a fire sale is needed. Thus RFID applications help product marketing managers maintain their margins. RFID applications are, also, a significant aid in deterring theft in retail environments. Items tagged with RFID devices can trigger alarms when they are removed from the store without being properly deactivated. RFID applications have been successfully deployed for anti-theft purposes for several decades. RFID Applications in Brand Protection: RFID applications can be used to protect brand identity by product marketing managers and to protect consumers from counterfeited products. RFID applications in anti-counterfeiting are, generally, aimed at high-value end consumer products. The unique identification number on standard RFID tags can be used to verify the authenticity of the products to which they are attached. These unique numbers combined with encryption algorithms can create authentication schemes that are extremely difficult for counterfeiters to circumvent. RFID applications in anti-counterfeiting can be used in many industries, including pharmaceuticals, electronics, entertainment, retail, IT and many more. It is estimated that counterfeiting costs legitimate companies nearly $600B worldwide each year. The payback even modestly successful anti-counterfeiting efforts can be very high. RFID applications represent one of the most promising methods for countering this major problem. By placing RFID tags on products at the point of manufacture, manufacturers can trace products throughout the supply chain. The pharmaceutical industry is creating an RFID application that will document the authenticity of their products at retail. Not only will the products have a unique ID, but information about the chain of custody for the product will be stored on the RFID tag or in an associated database. If the product is not properly tagged or the tag is not associated with the proper chain of custody then you know the product is counterfeit. While many anti-counterfeiting efforts are a large expense that most US companies face, RFID applications in anti-counterfeiting have a high ROI. By placing RFID tags on products at the point of manufacture, not only can products be traced throughout the supply chain, but it can also prevent counterfeit products from entering into the supply chain.

5.0 ENHANCING SCM WITH VOICE TECHNOLOGY

With small mobile computers, smart phones and applications hosted offsite and accessed through the internet cloud, users with only the need of a web browser can perform the same tasks as it used to take dozens of individuals working on a large enterprise system. The newest technology impacting how business is operated is the implementation of voice technology. Now employees with mobile computers do not even have to touch a keyboard in order to run business applications. Voice technology is even providing new opportunities in supply chain management. Now voice recognition software and associated technologies provide efficiencies to the supply chain management process by allowing employees to order and ship supplies using simple language instead of a computer keyboard. Using the most widely used supply chain management software, employees selecting orders from a supply warehouse have reported as much as a 25% increase in productivity and a 35% decrease in human error. When integrating voice technology into the supply chain management system, workers use a headset and microphone connected to a mobile computer that they carry with them. The mobile computer communicates wirelessly with a server that hosts the supply chain management software package. Information from the server is translated into simple language that can be heard through the headset. For example, the worker is told that an order has been filled and is then directed to the location where the items can be retrieved in the warehouse. The worker can also communicate information back to the server using simple language spoken through the microphone. Without the need to input information or read a screen, the worker can tell the supply chain management system that the order has been physically filled and that it has been transferred to shipping. This type of voice technology integration is not limited to supply chain management but has also been used to operate factories and distribution centers for almost a decade. Applications that have proven to be very successful are those that support quality control, package sorting, and inventory management. Right now the use of voice technology for supply chain management has still only been implemented in a small percentage of the large distribution centers. In addition to decreasing costs, new features such as multilingual voice recognition and synthesis and new supply management functions, such as restocking, will increase utility and drive continuous growth in sales and market penetration. Although, at this point, voice technology integration with supply chain management may not be a solution for all small businesses, it is a tool that will eventually be part of most warehouse and distribution centers. Business owners should take the time and research existing solutions to see if any of them would be appropriate for their particular business. It seems that the continued trend for supply chain management is to increase safety, decrease errors, and decrease management costs by freeing employees from the need to physically interact with the companys computer system.

6.0 SOFTWARE AGENTS

Monitoring and Surveillance agents and Data mining agents are being considered for applications in SCM. For example, NASA's Jet Propulsion Laboratory has an agent that monitors inventory, planning, and scheduling equipment ordering to keep costs down, as well as food storage facilities. These agents usually monitor complex

computer networks that can keep track of the configuration of each computer connected to the network. Agent-based solutions are being introduced for SCM. Air Liquide America LP, a producer of liquefied industrial gages, reduced its production and distribution costs using agents. Merck and Co, a leading research-driven pharmaceutical company used agents to help it find more efficient ways to distribute anti-HIV drugs. Proctor and Gamble used agents to transform its supply chain network into a network of software agents whose behaviors are programmed through rules. Artificial Intelligence emerged into the paradigm of software agents with the application area of multi-agent systems. A software agent is a software system, which has attributes of intelligence, autonomy, perception or acting on behalf of a user. Agents can behave autonomously or proactively. The intelligence of an agent refers to its ability of performing tasks or actions using relevant information gathered as part of different problem-solving techniques such as influencing, reasoning and application specific knowledge. Java has been the most common tool for building such intelligent agents which are increasingly becoming mobile. Most of the agent platforms available today like AgentBuilder, Aglets, Voyager, JADE, ZEUS and FIPA are implemented using this language. One classification of agents given by Haag (2006) suggests that there are only four essential types of intelligent software agents: Buyer agents or shopping bots - Buyer agents travel around network (i.e. the internet) retrieving information about goods and services. These agents, also known as 'shopping bots', work very efficiently for commodity products such as CDs, books, electronic components, and other one-size fits- all products. Amazon.com is a good example of a shopping bot. The website will offer you a list of books that you might like to buy on the basis of what you're buying now and what you have bought in the past. Monitoring and Surveillance Agents are used to observe and report on equipment, usually computer systems. The agents may keep track of company inventory levels, observe competitors' Prices and relay them back to the company, watch stock manipulation by insider trading and rumors, etc. User agents (personal agents) - User agents, or personal agents, are intelligent agents that take action on your behalf. In this category belong those intelligent agents that perform tasks like checking your e-mail and sorting it according to the user's order of preference, and alert you when important emails arrive; Play computer games as your opponent or patrol game areas for you; Assemble customized news reports for you. There are several versions of these, including newshub and CNN. Data mining agents - This agent uses information technology to find trends and patterns in an abundance of information from many different sources. The user can sort through this information in order to find whatever information they are seeking. Classification is one of the most common types of data mining, which finds patterns in information and categorizes them into different classes.

7.0 ELECTRONIC COMMERCE

Electronic commerce refers to the wide range of tools and techniques utilized to conduct business in a paperless environment. Electronic commerce therefore includes electronic data interchange, e-mail, electronic fund transfers, electronic publishing, image processing, electronic bulletin boards, shared databases and magnetic/optical data capture. Companies are able to automate the process of

moving documents electronically between suppliers and customers. This system provides access to customers all over the world and thus eliminates geographical limitations. Some of the E-commerce applications with applications in B2C (Business to Consumer) and B2B (Business to Business) space, which are changing the dynamics of Supply Chain Management include: E-tailing: using the Internet for selling goods over the internet. The archetypal e-tailing application is that of a bookseller such as Amazon. This company is renowned for the fact that it only sells books over the internet and doesn't even take telephone orders. Customers of Amazon interact with its website and carry out a number of functions including: browsing readers reviews of books; reading feature articles about books and authors similar to those found in magazines and newspapers; searching for details of a book based on information such as the author's name or the title of the book; browsing the books which are the Amazon bestsellers; ordering books using credit cards or some other similar payment method; tracking the progress of an order. e- Procurement: The term procurement is used to describe the purchase of goods and services which are not directly used in the main business of a company. For example, a car manufacturer will procure stationery for its employees or procure training courses for them to attend in order to improve their skills. An e-procurement system which would automatically take the form produced by the person making the procurement, check that it satisfies all the company rules for procuring the item that is required, carry out authorization if it is below a certain limit or send the form to someone who can carry out authorization and then log the purchaser into the site of the supplier. He or she is then able to use this site to make the purchase, quoting an automatically generated procurement requisition number. E-Auctions: These are sites on the web which run conventional auctions. There are two types of auction: those that are carried out in real time, where participants log in to an auction site using a browser at a specified time and bid for an article until the highest price is reached and no other bids are forthcoming. The other type of site and the most common is where an item is offered for sale and a date advertised after which no more bids are accepted. Such sites make a profit from two sources: first they usually charge a commission on the items that are sold and, second, they display adverts which are viewed by visitors to the site. The auction site will then receive some fee for displaying the advert, a further fee if a visitor clicks on an advert and it takes them to the advertiser's website and another fee if they purchase something from this site. Again, this is just an online analogue of a conventional business.

7.1 Electronic Supply Chains

Electronic Supply Chains (ESC) refers to those supply chains that are electronically facilitated between or among participating firms. Also called Virtual Supply Chains, these are realized in two forms, EDI-based or Internet based. EDI generally connects

firms through proprietary Value Added Networks (VAN), whereas the Internet generally connects firms through open networks which use standard protocols. The ESC links trading partners to allow them to buy, sell and move products, services and cash. Due to the low implementation costs, the introduction of the Internet has brought about opportunities that allow firms to transact with other enterprises electronically. Amazon is one such example. New types of intermediaries have been created as a result of virtual supply chains. The e-supply chain also envisages use of internet-based applications to transact and exchange information like product and inventory information with their downstream or upstream trading partners. Supply Chain initiatives like Collaborative Planning, Forecasting and Replenishment (CPFR), Vendor Managed Inventory (VMI), Efficient Customer Response (ECR) and Quick Response have been increasingly facilitated in the new e-supply chain paradigm. Information sharing among suppliers, manufacturers, distributors and retailers are greatly improved.

7.2 Virtual Market Places

Virtual marketplaces have many names such as e-markets, net market places, and electronic markets. These markets all have common characteristics:

Producers Reliance on the Internet Buyers and Sellers come together without an intermediary Neutrality (all buyers and sellers are treated the same) Information is provided about sellers and products MetalJunction is the virtual marketplace owned by two of Indias largest steel. In its most fundamental form, a virtual market place brings together buyers and sellers through the internet. At its highest level, a virtual market place gives a purchaser and supplier the opportunity to re-engineer the sales administration process, improve forecasting and scheduling, renew its go-to-market approach, shorten its order-tocash cycle, and enhance customer service. Ideally, virtual market places are centered on a particular industry. Some prominent examples are steel, agricultural products, and automotive parts. In addition to providing information on vendors and general information about its products, a virtual market may also offer product specifications, side-by-side comparisons, technical papers, and market analysis. Many challenges exist in setting up an e-marketplace. Primary among these are identifying the tools necessary to use the market, providing a secure environment, pricing, payment, and fulfillment. For an orderly marketplace, Internet protocols must be selected. The cost of the technology to access and engage in the market must not be prohibitive. Security and privacy must be adequate to ensure confidential transactions. Authentication and authorization of users from many organizations must be possible. Private communication must be assured. Pricing policies may be set or bartered. A common example of bartering, or auctioning, is E-Bay for consumer products. Payment procedures can be predetermined or arranged between the buyer and the seller. Finally, fulfillment of orders must be insured. As in the case of traditional marketplaces, failure to deliver in a timely manner will result in firms losing market power and ultimately may lead to failure.

8.0 GREEN SUPPLY CHAIN MANAGEMENT (GSCM)

Patrick Penfield of the Whiteman School of Management defines Green Supply Chain Management (GSCM) as "the process of using environmentally friendly inputs and transforming these inputs into outputs that can be reclaimed and re-used at the end of their lifecycle thus, creating a sustainable supply chain. GSCM integrates ecological factors with supply chain management principles to address how an organization's supply chain processes impact the environment. Organizations are increasingly becoming aware of the impact of tight integration of supply chain and environmental management systems in enabling a sustainable business strategy. Many are now seeking out solutions and guidance on how to implement a sustainable supply chain. A sustainable supply chain is supply chain that is not only optimal for the organization, but is optimal relative to its limited environmental impact.

8.1 Software Perspective - Streamlining / Transforming Business Processes

Green Supply Chain Planning: Information Technology can optimize transportation planning routes and ensure that goods/services are delivered in the most energy efficient and cost- effective manner. Automation of the transportation planning process enables transportation managers to manage by exception to mitigate the effects of unexpected events. The Supply Chain Council has documented the best practices for transportation and distribution in its SCOR framework. Some organizations like IBM have developed Business Process Modeling software based on the SCOR framework to enable efficient planning of supply chain functions. Many IT solutions exist that can evaluate the impact that various supply-chain network configurations and transportation strategies have on the carbon footprint. For example, LogicNet plus XE solution with the carbon extension from ILOG takes into consideration multiple parameters-including environmental factors - to help organizations choose the right kind of supply network configuration. Green Supply Chain Execution: Information can help in streamlining business processes and thereby, enable reduction in resource usage while executing business processes. For example, visibility solutions provided by Cognizant to leading logistics players for asset tracking helped them reduce their resource consumption while achieving higher service levels. Automation for enabling end-to-end paperless operations is a major target for waste reduction. RFID technology can also be a huge enabler for GSCM strategies. RFID-enabled tracking of energy footprint data can make it possible for organizations to understand the who, why and how a product reached a particular stage in the supply chain. RFID labels can carry information related to the carbon/energy footprint and help organizations more accurately analyze their supply chains from a variety of environmental perspectives. At Cognizant, there is a dedicated Center of Excellence for RFID that has helped in the implementation of RFID solutions for leading logistics providers and retailers. Green Supply Chain Collaboration: Collaborative Transport Management (CTM) goes hand-in-hand with GSCM. IT solutions for facilitating the involvement of all partners in the supply chain can help organizations

achieve better utilization of transportation assets and reduce overall energy requirements. IT can also facilitate collaborative planning forecasting and replenishment resulting in higher accuracy of forecasting thus reducing the resources consumed in production.

9.0 CONCLUSION
There is estimated to be around $107 billion in overall revenue opportunity for the cloud-based market in the next three to five years, and there is seemingly no limit to what the cloud can contain for enterprise applications. As the definition of cloud becomes more all encompassing, so does the technology companies are rolling out for clients. The market for cloud-based services is expected to reach nearly $150bn by 2014. Manufacturing companies around the world, with their inherent penchant for low IT budget, are paying much closer attention to cloud computing and its potential value to supply chain processes - from sourcing to after-sale service. RFID application in the supply chain offer solutions when it is impractical to use other technologies or manual labor to collect data. RFID applications have many benefits; RFID applications can help in asset tracking, inventory and product management and provide solutions for anti-counterfeiting. Data collected to accomplish all these goals can provide suppliers and end users with the tools and information to make management decisions on the fly resulting in a better ROI. Voice technology is even providing new opportunities in supply chain management. Now voice recognition software and associated technologies provide efficiencies to the supply chain management process by allowing employees to order and ship supplies using simple language instead of a computer keyboard. Using the most widely used supply chain management software, employees selecting orders from a supply warehouse have reported as much as a 25% increase in productivity and a 35% decrease in human error. With increase in environmental concerns during the past decade, a consensus is growing that environmental pollution issues accompanying industrial development should be addressed together with supply chain management, thereby contributing to green supply chain management. Green supply chain management has emerged as a proactive approach for improving environmental performance of processes and products in accordance with the requirements of environmental regulations.