Supply Chain Management

Topics: Supply chain management, Supply chain, Management Pages: 10 (2929 words) Published: November 25, 2010
Introduction

The recent advancement of information and communication technologies, in particular the Internet, transformed the traditional economy into network-based economy where e-business plays an important role. Globalization of the markets has lead to greater competition. In order to achieve efficient supply chain management in this global competitive environment, many companies nowadays are turning to Internet technologies to virtualize its supply chain processes. Advanced technologies enabled to consumers to have access to many suppliers and to find the supplier that provides services levels desired by customer. Internet created opportunities for supply chain reconfiguration and it is the driving force for the supply chain virtualization. The impact of Internet on SCM is a focus area of many managers and researchers. E-supply chain improves SCM decisions by providing real-time information and allowing coordination among trading partners. Doing business on the web enabled creation of new B2B marketplaces, which are called e-hubs. However, there are some critical issues, such as mistrust and competition throughout supply chain which prevent the evolution of supply chain management. This paper aims to enlighten definition of e-SCM and e-hubs, describe virtual e-chain model, as well as, benefits and concerns with e-SCM integration will be discussed.

1.Definition of e - Supply Chain Management (e-SCM)

To define e-SCM, it is important to know what the supply chain management is. There are many definitions of supply chain management proposed by the literature. Hertz (2006) defines supply chain management as a network of firms involved in upstream and downstream flows from sub-supplier to ultimate customer which uses information technology to help support and manage the links in that particular network. According to O´Brian & Marakas (2009) a supply chain consists of relationships between suppliers, customers, distributors, and other businesses. Stock & Boyer (2009) suggest a consensus definition according to qualitative study of 173 definitions of SCM published in multiple journals and books. Supply chain management is “ the management of a network of relationships within a firm and between interdependent organizations and business units consisting of material suppliers, purchasing, production facilities, logistics, marketing, and related systems that facilitate the forward and reverse flow of materials, services, finances and information from the original producer to final customer with the benefits of adding value, maximizing profitability through efficiencies, and achieving customer satisfaction” (Stock & Boyer, 2009, p. 17).

The e-supply chain connects suppliers, trading partners and customers on the base of a virtual network as one collaborating unit (Manthou, Vlachopoulou & Folinas, 2004). Lancaster, Yen and Ku (2006) emphasize that e-SCM must integrate the internet in order to achieve fluent information flow throughout the supply chain. Technology allows this communication to be automated, so every partner in the supply chain has an access to real-time information. The automated communication limits the amount of paperwork, filing and record keeping. The key factor in SCM is inventory, however in e-SCM the key factors are information and knowledge and the collaboration of all partners is of great importance (Manthou, Vlachopoulou & Folinas, 2004).

2.From EDI to e-HUB

The earliest information systems invented for supply chains supported mainly particular functions of supply chains, such as purchasing department. These systems were often developed individually for each company to match internal departmental processing requirements (Sherer, 2005). Interorganizational coordination was accomplished with electronic data interchange (EDI). EDI allows electronic exchange of business transaction documents, such as purchase orders, invoices and shipping notices over the internet between supply chain...

References: Clarke, M.P. (1998). Virtual logistics: An introduction and overview of the concepts. International Journal of Physical Distribution & Logistics Management, 28(7), 486-507.
Hertz, S. (2006). Supply chain myopia and overlapping supply chains. Journal of Business & Industrial Marketing 21(4), 208-217.
Kaplan, S., & Sawhney, M. (2000). E-hubs: The new B2B marketplaces. Harvard Business Review, 78(3), 97-104.
Kathawala, Y., Abdou, K., & Franck, C. (2002). Supply chain/electronic hubs: a comparative analysis. Benchmarking: An International Journal 9(5), 450-470.
Lancaster, S., Yen, D.C., & Ku, C.Y. (2006). E-supply chain management: an evaluation of current web Initiatives. Information Management & Computer Security 14(2), 167-184.
Manthou, V., Vlachopoulou, M., & Folinas, D. (2004). Virtual e-Chain (VeC) model for supply chain collaboration. International Journal of Production Economics, 87, 241-250.
O´Brian, J.A., & Marakas, G.M. (2009) – Management Information Systems. New York, NY: Mc-Graw-Hill/Irwin.
Sherer, S.A. (2005). From supply-chain management to value network advocacy: implications for e-supply chains. Supply Chain Management: An International Journal
10(2), 77–83.
Stock, J.R., & Boyer, S.L. (2009). Developing a consensus definition of supply chain management: a qualitative study. International Journal of Physical Distribution & Logistics Management 39(8), 690-711.
Zeng, A.Z., & Pathak, B.K. (2003). Achieving information integration in supply chain management through B2B e-hubs: concepts and analyses. Industrial management & Data systems 103(9), 657-665.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • SOME SUCCESS STORIES IN SUPPLY CHAIN MANAGEMENT Essay
  • Discuss the significance and recent trends in operations management Essay
  • Supply Chain Management Essay
  • Essay on Quality Management and Supply Chain Management Case Study: Pars Food
  • Essay about Supply Chain Management
  • Essay on Supply Chain Management
  • Supply Chain Management Essay
  • Supply Chain Management Research Paper

Become a StudyMode Member

Sign Up - It's Free