B2B Integration : A Practical Guide to Collaborative E-commerce

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Chapter "| 4 Supply Chain Management (SCM) The focus of this chapter Supply chain management (SCM) is one of the most important applications enabled by B2B integration for various industries. B2Bi helps businesses effectively Web-enable all processes of supply chain management and allows tight integration with processes of customers, suppliers, distributors and marketplaces. In this chapter, we have presented the fundamentals of SCM, along with an in-depth discussion of how B2Bi automates it. You will learn about the differences between a push and a pull-based supply chain, challenges involved in implementing a supply chain management solution, different SCM techniques and features of SCM systems. 409
410 B2B Integration — A Practical Guide to Collaborative E-commerce 14.1. Introduction B2B integration opens a world of opportunities for effective and successful supply chain management which coordinates and integrates all activities, internal and external, into a seamless process. The internal activities pertain to various departments within an organization and external activities relate to trading partners, such as vendors, carriers and third-party companies. A company that is able to automate all activities through B2Bi is in a position to deliver products with low operational costs and high profitability and would stand the market competition and flourish. B2Bi helps businesses effectively Web-enable all processes of supply chain management and allows tight integration with processes of customers, suppliers and marketplaces. 14.2. Fundamentals of Supply Chain Management In this section we will go over some of the fundamentals of SCM. SCM is a subject in itself, thus it is not possible to cover each section in-depth. Our goal is to provide differentiation between a B2Bi-enabled and a legacy supply chain. 14.2.1. A few definitions of SCM There are numerous definitions of SCM. Here are a few of them: • SCM is the process of maximizing a company's internal practices and its interaction with suppliers and customers, in order to bring products into market more efficiently. • SCM is a business strategy to strengthen the shareholder and customer value by optimizing the flow of products, services and related information from point of origin (source) to the end user. • SCM enfolds processes of creating and fulfilling the demand for goods and services. • SCM is a set of business processes that covers a trading partner community engaged in a common goal of gratifying the end customer.
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B2B Integration : A Practical Guide to Collaborative E-commerce

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