1. Introduction

Along with the advance of a network-based society, many companies have actively been investing in information technology (IT) for the purpose of improving the speed and efficiency of their businesses and promoting rationalization efforts. The movement toward networking, however, has not been limited to within companies, but rather has also been spreading to company groups and partner companies. Furthermore, such extensive networking is expected to produce major effects in the interoperability of information between companies. The business environment in which trading, distribution, financial, and other types of companies do business is significantly changing.
Although individual perspectives and objectives vary according to type of company and industry, investments made in IT generally incorporate the following basic objectives; (1) They allow business alliances to be formed that transcend group companies, (2) allow information to be shared during processes that range from research & development to distribution and service, (3) lead to improvements in quality, and reductions in product lead times/costs, (4) facilitate improvements in the overall business structure in which networks are positioned as core elements in the information infrastructure, (5) promote standardization that leads to open commerce, and (6) help to ensure overall improvements in the competitiveness of a company.
In 2000, the SCM (Supply Chain Management) Business Model SWG concentrated its efforts on "business models that small and medium-sized companies can adopt" based on "Japanese-style SCM business models," and subsequently conducted survey research. In particular, focus has recently been placed on "methods of creating SCM business models" that involve "ASP service" and "e-Marketplace" which are expected to be used by smaller sized companies.

2. Objectives and background

In order to provide proposals on the examination and creation of SCM business models as well as their applications to other industries, the SWG conducted survey research of SCM business models that utilize ASP service and the e-Marketplace as useful services for small and medium-sized companies, based on "Japanese-style SCM business models." During the research, (1) a study of the As Is (current) and To Be (future) models, (2) a study of SCM business models that utilize ASP service and e-Marketplace, and (3) a quantitative analysis using simulation models were conducted.

3. Results

(1) Scope of the studies (cautionary points)
Two industries (confectionery and luxury goods/sundries and toiletries) were selected out of four industries researched in 1999, while two different industries (textiles and home electronics) were newly selected in 2000 in order to carry out comparative studies of the As Is and To Be models. Virtual models involving the use of ASP service and e-Marketplace were also examined, and quantitative analysis and evaluation was subsequently conducted.

(2) Examination of SCM business models
Taking the characteristics of the two industries (confectionery and luxury goods/sundries and toiletries) into consideration, an indication was made of the structure of the related supply chain models, and the current (As Is) model was also formulated. Following that, the future (To Be) model was studied from multiple perspectives (order receipt/placement, inventory control, and demand forecast, etc.). Additionally, a simple simulation model was created for comparative study of the current and future models, and quantitative analysis and evaluation was subsequently conducted.

(3) Application of SCM business models to other industries
Two industries (textiles and home electronics) were newly selected for study as the current and future models similar to (2), and quantitative analysis and evaluation was later conducted using a simulation model.

(4) Proposal for establishing SCM business models
The problems and solutions related to structuring a supply chain (future model) for the two industries (textiles and home electronics) were examined. The textile industry is characterized by the problems of (1) loss of sales opportunities or returned goods/unserviceable inventory, (2) sewing companies in the industry face difficulty when participating in comprehensive portals and trading with SPAs (specialty store retailers of private label apparel) because they belong to commercial apparel company groups, and (3) difficulty in forecasting accurate demand for fashion merchandise.
The home electronics industry meanwhile is characterized by the problems of (1) uncertain demand compensated by smaller suppliers, (2) smaller suppliers have limited funds for IT investment, and (3) smaller suppliers are not widely known and have difficulty in finding new trading partners. Accordingly, possible measures to resolve these problems were studied.

(5) Survey on the current state of ASPs and establishment of a model case
In order to study "SCM business models" that utilize ASP service and the e-Marketplace, the SWG surveyed the current state of ASPs (application service providers) and their users, while studying four virtual models; 1) an SCM portal for demand forecasting, planning, and inventory optimization, 2) a cooperative SCM portal, 3) a logistical SCM portal, and 4) the e-Marketplace.

(6) Establishment of investment management models
Managers of small and medium-sized companies are generally under the impression that their investments in IT have so far not produced any significant effects. And although smaller companies are often forced to invest in IT under the initiatives of large companies, it still remains necessary for these smaller companies to quantify the actual effects of their own corporations. Therefore, studies were made on 1) the expected effects of SCM, 2) patterning of investment management models, 3) investment decision steps, 4) evaluation and analysis of models, and 5) systemization of investment management models.

(7) Evaluation of simulation tools
The simulation tools used in the quantitative analysis and evaluation of SCM business models were verified. Tools which could be easily used by owners and managers of small and medium-sized companies were selected through a comparison of various types of tools. In particular, 1) consideration of package evaluation items, 2) comparative evaluation of packages, and 3) comprehensive evaluation of packages were studied by looking at pamphlets and collecting opinions from tool vendors.

4. Remaining issues

It is hoped that "SCM business models" and "the theoretical effects attained by simulations" will be broadly understood and positively used by many companies and industries. Additionally, it is also hoped that on-site verification of "SCM business models" that utilize ASP service and the e-Marketplace will help smaller companies to more easily participate in EC in the future.