Process Flow Supply Chain Management

1528 Words Feb 24th, 2011 7 Pages
Running head: PROCESS FLOW: SUPPLY CHAIN MANAGEMENT

PROCESS FLOW: SUPPLY CHAIN MANAGEMENT AND ELECTRONIC DATA INTERCHANGE (EDI)

Clifford Butler

Operation Management

November 1, 2009

Table of Contents
Abstract……………………………………………………………………………………………3
Introduction………………………………………………………………………………………..4
The Internet-based supply chain system for mass customized markets………..………………..4
The role of electronic data interchange (EDI) and the Internet in supply chain integration..…...5 Why do the mass customization of demands warrant a new business model…..………………6 The LEAP communication infrastructure, analyze how EDI integrates into the process flow...6

The necessity of a high degree of EDI presence in the Supply Chain
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According to Reid and Sanders (2007) e-commerce are defined as the use of the internet and the Web to transact business. Over the years, EDI has become the most common method of using computer-to-computer links to exchange data between supply chain partners in a standardized format (Reid and Sanders, 2007). This integration of EDI in supply chain system has created many benefits for companies around the world. Some of these benefits have been outlined by Reid and Sanders (2007) which include but not limited to, qquick transfer of information, reduced paperwork & administration, and improved data accuracy & tracking capability (pg. 105). Ghiassia and Spera (2003) have made a great case in describing how the use of internet base supply chain systems can only be profitable if it seamlessly integrates front and back-end Web operations. For example, Ghiassia and Spera (2003) provided in their case study, “If, however, an e-commerce solution that accepts orders from customers does not also automatically transmit them to the back-end supply chain or enterprise resource planning (ERP) application responsible for processing requests, the solution is largely unprofitable and inefficient” or the other way around. This is an excellent example of how many companies fail today when they try to incorporate EDI and internet supply chain into their overall operations without fully
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