Representative Examples Of Virtual Collaboration

Leading businesses are moving quickly to realize the benefits of virtual collaboration. For example, the real estate franchiser RE/MAX uses an e-collaboration platform to improve communications and collaboration among its nationwide network of independently owned real estate franchises, sales associates, and suppliers. Similarly, Marriott International, the world's largest hospitality company, started with an online brochure and then developed a c-commerce system that links corporations, franchisees, partners, and suppliers, as well as customers, around the world. In addition, Nygard of Canada has developed a collaborative system along its entire supply chain. There ara many examples of virtual collaboration. Here we present some additional representative ones. Information Sharing Between Retailers and Their Suppliers: P&G and Walmart. One of the most notable examples of information sharing is between Procter & Gamble (P&G) and Walmart. Walmart Providers P&G access to sales information on every item Walmart buys from P&G. The information is collected by P&G on a daily basis from every Walmart store, and P&G uses the information to manage the inventory replenishment for Walmart. By monitoring the inventory level of each P&G item in every Walmart store, P&G knows when the inventories fall below the threshold that triggers a shipment. All this is done electronically. The benefit for P&G is that they can sell to a good customer, and the benefit to Walmart is adequate inventory on its shelves. P&G has similar agreements with other major retailers. Retailer-Supplier Collaboration: Target Corporation. Target Corporation (targetcorp.com) is a large retail conglomerate (owner of Target Stores, Marshall Field, Mervyn's, and Target.direct.com). It needs to conduct EC activities with about 20,000 suppliers. In 1998, the operating under the name Dayton-Hudson Corporation, The company established an extranet-based system for those suppliers that were not connected to its VAN-based EDI. The extranet enabled the company not only to reach many more partners, but also to use many applications not available on the traditional EDI. The system enabled the company to streamline its communications and collaboration with suppliers. It also allowed the company's business customers to create personalized Web pages that were accessible via either the Internet or the company's private VAN. Reduction of Product Development Time: Caterpillar, Inc. Caterpillar, Inc. is a multinational heavy-machinery manufacturer. In the traditional mode of operation, cycle time along the supply chain was long because the process involved paper-document transfers among managers, salespeople, and technical staff. To solve the problem, Caterpillar connected its engineering and manufacturing divisions with its active suppliers, distributors, overseas factories, and customers through an extranet-based global collaboration system. By means of the collaboration system, a request for a customized tractor component, for example, can be transmitted from a customer to a Caterpilar dealer and on to designers and suppliers, all in a very short time. Customers also can use the extranet to retrieve and modify detailed order information while the vehicle is still on the assembly line. Remote collaboration capabilities between the customer and product developers have decreased cycle time delays caused by rework time. Suppliers are also connected to the system, so they can deliver materials or parts directly to Caterpillar's repair shops or directly to the customer if appropriate. The system also is used for expediting maintenance and repairs.

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