Supply Chain Management: Integration and Globalization in the Age of e-Business

This research evaluates General Motors' approach and implementation of e-business techniques in supply chain management. The level of integration achieved is identified and discussed.

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Supply Chain Management: Integration and Globalization in
the Age of e-Business
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Table of contents
Abstract…………………………………………………. 1
Introduction ……………………………………………. 2
Aim of the research ……………………………………… 3
Methodology ………………………………………………4
Results and discussion ………………………………… .5
Future work …………………………………………… .6
Conclusion …………………………………………………7
Reference ………………………………………………… 8

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Abstract
The main aims of this research are to evaluate General Motors company in its
approach and implementation of new emerging trends in e-business techniques. The
mechanisms, for example, involves eProcurement of the vehicles available in market auctions
and exchanges. The aims are clearly to identify whether supply chain integration is
established to reach the company goals. The level of integration is also achieved in this case.
General Motors have been one of the most successful companies dealing with a motor
vehicle. It has an annual sales volume of more than $ 8 billion.
Introduction
Supply chain management has risen at an optimum rate since its development in the
1980s. Over the years it's been transformed significantly from a primary operational activity
that takes into account on providing support to the company's manufacturing aims and
currently considered as a strategic concept which spans various functions bridges the inter-
organizational boundary regions. The main players involved in professional managing supply
chains in the global market upstream focusing on the downstream suppliers takes in to
account the level of consumer target group (Prajogo & Olhager 2012). This supply chain
concept has become the main domain in the achievement of cost and service increment ad
also played a more crucial role in enterprise planning and service delivery successful
improvements of a particular company. For example, in this case, General Motors
Corporation has engineered its supply chain by incorporating making orders, low inventories
maximized logistical and direct deliveries to customers with an aim to achieve an important
competitive benefit over its rival companies dealing with a similar range of products in the
global market.

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This company looks forward to leveraging supply chain as a way of increased overall
performance thus emphasized highly on growth and development of closer relationships with
various product suppliers, distributors, and consumers. There has also existed prospective
propelling of stronger relationships policies and increased [partnership program. This
situation is based in terms of cooperative philosophy resulting upholding of various
integration of processes and systems with companies in the supply chain that creates a wide
range of globalized trade with enhanced greater risks. This integration in the supply chain
management will require advanced information system and a more developed electronic
technology.
The development of internet and other advanced technologies which ensure that
companies acquire maximum information sharing and data exchange such as interrelated
ERP techniques, electronic company portals, and online order and inquiry processing systems
can basically maintain strong closer links with consumers, motor vendors, and suppliers
(Fernie & Sparks 2014). For example, logistic providers. Factors that have driven forward
supply chain includes competition cultures, information technology, process alignment and
firm legacies that positively transforms this concept. A gradual development of the
companies e-business projects will enable the top level managers and key market players to
understand the success or failure in acquiring such integration.
Supply chain management and e-business integration
This approach grew out of the rise in significant logistic planning processes across a
variety of companies including General Motors. As enterprises improved further on their
operational activity performance it became efficient to find intercompany solutions regarding
logistic difficulties composed with an external focus and sharing of resources thus utilizing a
high level of expertise. This resulted in core development for example outsourcing

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operations, increase in assets and motors vendor based inventory in the management sector
(Wagner & Sweeney 2011). Driven forward, the companies started to experiment with a
wide range of potential advantages of more cooperation with suppliers and consumers at
various points of the supply chain. The main purposes of these developments have been to
facilitate the concept of integration of operations and process between the main players of the
supply chain in the international market (Fernie & Sparks 2014).
General motors maintain massive support for external integration thus different
research proposes that they exist several advantages that raise the level of supply chain
integration increase gradually. Research evidences have indicated that the utilization of e-
business tools results to a much greater level of integration within the frameworks of the
supply chain system. High cooperation among different riding partners is important for
successful management of the concept to all transactions parties who get merits on the
efficacy acquired. (Wagner & Sweeney 2011). Despite the theories that increase strong
working relationships and some successful operations, most companies for example General
Motors have proved to be problematic in getting maximum integration between enterprise
working efficiently in the chain. Researchers show that even in the US where these
techniques are mostly used and understood, the level of the integration process between the
business is often limited. The measurement of discussion is often prevented by the lack of a
complete standard adopted a definition of its deeper meaning. Further research help
practitioners in the study of integration success. There exist several types of integration in the
supply chain as shown below;
 Functional thinking
 Integration based on an internal process
 Backward integration
 Forward integration

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 Compete forward and a backward integration.
In order to ensure a supply chain is propelled forward by customer demand,
information integration is very important. This is typically the most convenient manner to
solve the problem of demand information bias that is commonly referred to as the bullwhip
effect. This can result from various factors such as companies making use of available local
information and dataset to demand anticipated forecasts and giving them to the local
upstream partners considering the decisions regarding economic factors, constraints and
expected performance measures favoring the supply conducive environment. The bullwhip
effect is preventing by having a transparent demand information in the supply chain
management. It's usually considered a key base aspect of supply chain integration in the
motor vehicle industry and other companies existing across the world (Wagner & Sweeney
2011).
General motors company engage in information sharing for example sales
information, inventory dataset assembling and production time frame, advertisement effort
plans, and various market demand forecast at given period of time (Fosso Wamba 2012). The
internet has created large availability of significant opportunities for cross-company
integration for example including operations like procurement, design maximization, and
financial exchanges. The outcomes of these include fast, reliable and economical supply
chain operation. Over the internet buyers of the vehicles can complete purchasing activities
like order change. The internet also enables companies to tap into larger supply base thus
ensuring convenient and effective supply of important products.
New business models
New emerging internet related enterprise models are becoming more evident in the
supply chain. It facilitates information searches in order for resources such as inventory can

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be withheld to satisfy the needs of the company. With the increased development of
technology companies can modify the logistic flows of the products to gain conveniences.
The internet, therefore, allows information flow to overlap the physical flows (Laudon &
Traver 2013). Different advanced innovation ideas should be ensured to provide integration
change in the supply chain. The internet allows companies to use the website in searching for
consumers tastes and preferences. New business models indicate that in the coming years,
companies will apply the internet to develop business paradigms. Due to these advancements,
the supply chain becomes a possible reality. Therefore, General motors company will
effectively utilize e-business to promote their integration efforts in order to acquire a high
competitive benefit over their rivals in the global market.
Work methodology
Research methods
As the literature involves in the supply within the chain management continued to
enlarge, there is little evidence showing how, why and where the supply chain integration is
highly achieved within the implementations of the e-business (Cao et al,2010). Different
sources which were referenced at the initial stages regarding the concept of the e-Business
was targeting to enhance the promotion rate as compared to the support from the failures of
various companies. The research reflects the goals mentioned above. Basically, the aim of the
research was to come up with the description of the intensity of integration found in different
supply chains whereby the concept of the business has been used to implement. For the
project to be successful, a case study was used that is there was an investigation about the real
functions of the General Motors company whereby its commercial and the industrial
information was recorded (Cao et al,2010).

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The theoretical sampling technique was used whereby it involved comparison of the various
data from other companies manufacturing cars and the company of our study the General
Motors company. This suggests that a single company cannot be taken since the e-Business
strategies are not displayed by a single company.
The most part of collecting information in the research involved the use of the interview. This
involved interviewing the managers from the companies selected. The managers were
believed to come from different departments within the companies (Cavinato,2010). They
were from the marketing departments, the chain department, the purchasing department and
the information technology department. During the research different people were
interviewed thus reducing cases of the personal bias. The concept used during the research
through the interview mechanisms was used vital factors. This included the motives on the e-
Business usage, the advantages and the disadvantages faced in the project and the level of the
integration within the companies(De Vries & Huijsman2011).
Most of the respondents within the companies replied fully depending on their area of
operation or the level of the responsibility. The areas of the subject were selected thus
providing adequate support which will relate to the aims of the project. The continuity and
the coherence between the employees were maintained through the use of the structured
themes during the research. The interviewing process was carried out at the different time and
at different places. In order to verify the results from the employees in the companies, some
key data collection from the other parts of the company such interview from the customers,
number of the products produced and the rate of saving incurred within the organizations
(Ranganathan et al,2011).
However, there was the direct observation in other sections of the companies in order
to determine the activities carried out.The research accounts for the analysis and the whole

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concept of examination on the impact that the integration ha on the customers and how the
company is affected by the e-Business.
Results
General Motors Company is a large company dealing with the distribution of the
motor vehicle spares, the electronics and the other industrial products. This means that the
company is serving as private and also a business user in different countries over the world. It
was noted that General Motors had a total stock of $560,000 in supplying the products to
their customers (Ranganathan et al,2011). Every order was fulfilled for a short period. This
shows that its products were fetching huge prices in the market. The investigation revealed
that the company used to use the traditional methods for keeping stocks for the last ten years.
The company later realised the use of the electronic techniques for storing stocks in the
company. It realised that internet was the key factor for the business to survive. This led them
to launch a new website which targeted to increase the online marketing concepts within the
business (Awad,2010). Use of the sell side techniques were developed by the company and
thus using the internet as the sale thus order placed by the customer being described as the
tool. The use of the sales order software's helped the company to record various data type that
could be linked to the internet thus enhancing the rate of invoicing, the order processing
mechanisms and also helping the company to settle (Liu et al,2013). The eProcurement side
of the firm used different buying strategies. The company was based on the buying model
meaning the buying potential of the company was high.
General motors company focused on the particular segments of the business. Since
general motors is a big company, it focused to reduce the purchase of the tail prices to their

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products in the market. It also targeted to save more than the rate of the purchase. To
maintain the adoptions of the customers from the market the company adopted new
mechanisms such as the purchasing manager. The purchasing managers carries the duties of
buying and always targeting to increase the production volume within the business
environment (Liu et al,2013).
Here supply chain management is recorded by the fact that customers who purchase products
from the company enjoy the savings. This was achieved through the discounts and selling
products through online and also selling the standard products to the customers.
General Motors on the other side is able to determine the integration levels through
the accessing data and selling orders through the online (Johnson,2014). However, the
customer cannot access the integration since no one can access the integration back to the
system. Also, the purchase manager in the company cannot be used by the company in the
web measures received for their competitors. The results show the benefits of the sell-side
model to the suppliers whereby the company has a firm supply chain management since it has
control over the sales channel meaning the sale of the products is also reduced. The supply
chain management in the General Motors company is mostly found in the suppliers (Kurien
et al,2011). This means that the supplier in the company is able to automate the information
that is flowing through the company. The rate of coordination between the customers and the
concept of the supply chain integration is limited thus proving that the supply chain
management is highly illustrated by the supplier.
Finding and the discussion
The impact of e-Business is displayed by the company. From the results provided the
company is defined to have the inward facing and the outward type of integration. The
information of the integration in General Motors company can be said to be high (Kurien et

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al,2011). The company exchanges information's through the use of the technology whereby
some of the processes in the company is directly involved in online.
Information flow in management.
In the company, sharing business information serve as a key factor. The information
is expected to flow freely from the supplier to the end consumers in General motors
company. The supply chain between the organizational functions is achieved (Baltzan,2012).
This means that when a failure results in the cause of the supply chain management then the
whole process of the chain is distorted. Within the company, the flow of the material is
maintained starting from the source point all the way to the end consumers. The profits are
incurred meaning that money follows a chain back to the company. The concept of the supply
chain in this company defines supply as a function meaning different identities work hand to
hand. The company's supply network consists of the manufacturers, the suppliers, the
distributors and the details to the consumers.
(Fig 1) The external and the internal chain supply of the company (Su &
Yang,2010).

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Role of the ERP to supply chain in the company.
Due to the changes in the technology, General Motors is seen to change the chain
supply due to large competition experienced in the market. The enterprise resource planning
(ERP) is a system which acts as an image in displaying the material requirement planning
concept of the company. This means that ERP connects various functions within the
company, they also link the supply chain of the company thus facilitating different entities in
the business to access information both internally and externally. Due to the changing
technology in world General motors company is extending the market potential at high rates
(Su & Yang,2010). The ERP technique helps the company in;
1.it helps the company to standardize various types of the data and also the processes
incurred.
2.assists in integrating the core concepts of the business in the world.
3.helps in analysing the huge customization within the company that is identifying the vital
products and coming up with the predefined strategies or mechanisms.
(Fig 2) the e-business of the ERP in the company (Pardalos &
Tsitsiringos,2013).

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Future work
E-business is not used online only it’s also applied in human factors. Failure to
incorporate human force in the business with the e-business has resulted in many failures
within the business. The concept of technology and the social environment should serve as
function meaning they ought to go hand in hand. In small companies where they cannot
access the human force then the e-business will be limited (Pardalos & Tsitsiringos,2013).
There is need to provide maximum knowledge on the concept of the e-business. Adequate
training is vital for the business to thrive. Most of the barriers to e-business come from
human force meaning the idea of insufficient funds, lack of proper communications strategies
and also fear forms barriers. Therefore, further research can be done time to time so as to
cope with the changing e-business.
Conclusion
The following conclusions were identified in the research concerning the concept of
the e-business.

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1. The various web designs or the online measures designed by the sellers in the company
helps to expand marketing and also supporting the company's goals and the objectives
(Waters & Rinsler,2014). The selling strategies cannot work on their own meaning concepts
of ERP are incorporated so as to satisfy the chain supply management in the market.
2. In the concept of the e-procurement, it has been identified that eProcurement strategies
should be incorporated into the supply chain management. The e-Procurement strategy is
controlled by the purchasing power of the company. When the functions are integrated
together in the supply chain the company will advance in integration system.
3. Online provides a platform for the buyers to purchase products from the company. This
means there no huge implementations of the concept of the supply chain in the company.
Also, many of the suppliers can incur huge benefits during the supply through either getting
new tenders or even reducing the products costs and this implies that the integration level in
the company is minimal (Waters & Rinsler,2014). The eProcurement basically provided
profits to the buyers within the supply chain management.
Therefore, the research in General Motors Company studies how the idea of e-business has
been used in supply chain management. The evidence is well shown on the concept of the
buyer to seller integration. Technology facilitated the integration of the e-business in the
supply chain management (Leuschner et al,2013). Use of supply chain solutions has been
identified so as to reduce inefficiency that may emanate during the e-business integration
mechanism.

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