Re-engineering Distribution Using Web-based B2B Technology

The focus of Business Process Re-engineering (BPR) has been extended to inter-business process that cuts across independent companies. Combined with Supply Chain Management (SCM), inter-business process reengineering (IBPR) focuses on synchronization of business activities among trading partners to achieve performance improvements in inventory management and cycle time. This paper reviews the business process reengineering movement from the historical perspective and presents a case of inter-business process reengineering using the latest internet-based Business-to- Business (B2B) technology based on Collaborative Planning, Forecasting, and Replenishment (CPFR). The case demonstrates how CPFR technology reengineers the distribution process between Heineken USA and its distributors. As world's first implementor of web-based collaborative planning system, Heineken USA reduces cycle time from determining the customer need to delivery of the need by 50% and increases sales revenue by 10％. B2B commerce on the internet is predicted to grow from $90 billion in 1999 to $2.0 trillion in 2003. This paper provides the management with the bench-marking case on inter-business process reengineering using B2B e-commerce technology.