The Supply Chain Concept

1622 Words Jul 18th, 2005 7 Pages
Supply Chain Concept
Introduction
In today 's competitive business environment many firms face the arduous mission of managing their supply chain. In an effort to gain competitive advantage, firms must make key decision involving logistics and operations management to move products and service across the supply chain. The materialization and attractiveness of the Internet has made supply chain management more attainable for business enterprises. Research shows that Internet-derived technology has enabled companies to build and deploy supply chain management systems to perform key business decisions involving product flow and scheduling, process design and selection, product sourcing, layout, job design, and technology management.
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In fact, Young (2001) also states, "particular product categories may work better in certain channels than in others. Clothing sells better for us online, while boot wear works best in the catalog. So we would tailor our promotions accordingly."
The use of internal market research does not only facilitate in developing a distribution strategy, but also assists the procurement, logistics, marketing, and inventory departments to order, distribute, promote, and maintain the right products to meet consumer demand.
EBusiness plays a key role in gathering information to allow firms to improve supply chain processes that increases productivity and distribution of the right products to the right place to meet the customer 's needs.
The benefits of the Supply Chain to eBusiness
EBusiness is very beneficial in improving and maintaining product quality and reducing cost. By using Internet technologies across the supply chain a firm can determine the best ways to implement eBusiness strategies by analyzing business processes throughout the entire organization. Schneider (2004, p. 230) illustrates that Internet technologies provide suppliers with the following advantages in an eBusiness environment:
• Share information about customer demand fluctuations.
• Receive rapid notification of product design
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