Operations Management: An Integrated Approach, 5th Edition

MAJOR ISSUES AFFECTING SUPPLY CHAIN MANAGEMENT

Information Technology

Information technology enablers for supply chain management include the Internet, the Web, EDI (electronic data interchange), intranets and extranets, bar code scanners, and point-of-sale demand information. We begin by looking at the use of the Internet and the Web as a way of doing business.

E-Commerce

E-commerce

Using the Internet and Web to transact business.

E-commerce and e-business are defined as the use of the Internet and the Web to transact business. E-business refers to transactions and processes within an organization, such as a company's on-line inventory control system, that support supply chain management. E-commerce includes B2B (business-to-business) and B2C (business-to-consumer) transactions. Let's take a closer look B2B e-commerce.

Business-to-Business (B2B) E-Commerce

In business-to-business e-commerce, companies sell and buy products to and from other businesses. B2B represents the largest segment of e-commerce sales transactions. Prior to the Internet, B2B was relatively inefficient. It took time and resources for companies to search for products, to arrange for purchase and payment, to handle shipment, and finally to receive the items. Using the Internet allowed companies to automate at least parts of the procurement process. Significant dollars are saved by organizations due to effective ...