The Role of the Internet in Supply Chain Management

1872 Words Feb 26th, 2018 7 Pages
Hence, supply chain consists of a group of different companies working together to produce finished goods sold to customers out of raw materials.

Company strikes to gain competitive advantages through improving their supply chain. Supply Chain Management (SCM)oversees different company’s activities and makes sure that they collaborate well. Supply Chain Management is therefore defined as the management of upstream and downstream relationships in order to deliver superior customer value at less cost to the supply chain as a whole. (Christopher, 1998). An increase in competitions means that companies must combine together to form a network of organizations. Failure or refusal of doing so would result in falling behind to the company’s rivals.

The Internet has an important role in supply chain management because it enables real-time information and collaboration between trading partners, which makes decision making easier. Gunasekaran and Ngai (2004) refers e-SCM as the integration of Internet-enable activities within the supply chain. In order for the e-SCM system to work, applications such as determining the best way to fill an order, to track goods and to manage materials require state-of-the-art IT…