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Chapter 17 : Supply Chain Management and E-Business

Supply Chain Management: An Overview

    E-Supply Chain

        Components of the E-Supply Chain
        Inter-Enterprise Integration
        Supply Chain Planning
        Supply Chain Execution

    Managing Relationships in the E-Supply Chain

        Commodity-Based Supplier Relationships
        Strategic Supplier Relationships

    Issues in E-Supply Chain Management

        Appropriate Supply Chain Structure
        Differentiation
        Order Fulfillment Capabilities
        Adequate Infrastructure

    Future of the E-Supply Chain

        Integrated Make-to-Stock
        Continuous Replenishment
        Build-to-Order
        Outsourcing Supply Chain Management

Chapter Summary

We started our discussion by defining the supply chain as a set of processes for creating and delivering products. Then we moved on to e-supply chains that use information systems to coordinate the processes in supply chain management. E supply chains help improve speed, agility and customer satisfaction in B2B businesses through the use of new technology. The e-supply chain comprises of five components, namely, supply chain replenishment, collaborative planning, collaborative product development, e-procurement and e-logistics. Inter-enterprise integration is the backbone of SCM. The different types of enterprise integration are: responsive supply chains, enterprising supply chains and intelligent supply chains.

Supply chain planning comprises of advanced scheduling and manufacturing planning modules, distribution planning modules, demand planning modules, and transportation planning modules. Supply chain planning is followed by supply chain execution. Supply chain execution comprises of order planning, production, replenishment, distribution management and reverse logistics.

The different relationships in a supply chain are: the commodity supplier relationship and the strategic supplier relationship. Companies have to consider a few factors before implementing SCM. They have to seek answers to the following questions: What is the right supply chain structure for my company? How does the chain enable effective differentiation capabilities? Does my supply chain facilitate effective order fulfillment capabilities? Does my company have the right infrastructure capabilities? The future of e-business is expected to be established through integrated make-to-stock, continuous replenishment and build-to order models.

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