ICT and e-Business in the Pulp, Paper and Paper ... - empirica

Pulp, paper and paper products
This finding is somewhat in conflict with the fact that many large firms that have
established (or are establishing) sophisticated e-procurement schemes have the explicit
target to streamline their supplier base. ICT empowers them to bundle procurement
activities of different establishments or even branches in order to exploit economies of
scale. However, previous sector studies by e-Business W@tch have already shown that it
is hardly possible to support this evidence by data from the e-Business Survey. The main
reason is that supplier consolidation is a strategy which is mainly used by the largest
firms; thus, results do not really show up in this SME-focused survey. However, effects
have clearly an economic impact.
3.5.2 e-Integrated supply chains: SCM, financial e-processes and ICT
links with suppliers
SCM – Supply chain management
Supply chain management (SCM) software can help companies from the P&P industry to
match supply and demand through integrated and collaborative interaction tools. SCM
provides an oversight of the flows of products/materials, information and finances, as they
move in a process from supplier to manufacturer to wholesaler to retailer to consumer.
SCM coordinates and integrates these flows both within and among companies. One of
the key objectives of any effective SCM system is to reduce inventory (with the
assumption that products are available when needed). 56
Exhibit 3-27: Supply chain integration: use of SCM and ICT links with suppliers
40
30
20
41
10
0
21
13
Total Pulp &
Paper (EU-
10)
6
Micro (1-9
empl.)
13 13
8 7 10
Small (10-49
empl.)
Medium (50-
249 empl.)
19
Large (250+
empl.)
16
12
All 10
sectors (EU-
10)
Use SCM
ICT system linked w ith suppliers
Base (100%): Companies using computers. N (for sector, EU-10) = 964
Weighting: Totals (for the sector and for all 10 sectors) are weighted by employment and should be read as
"enterprises comprising …% of employment in the sector(s)". Figures for size-bands are in % of enterprises
from the size-band. Questionnaire reference: D1f, F13a
Source: e-Business W@tch (Survey 2006)
56
Cf. www.mariosalexandrou.com/definition/scm.asp: "Definition of Supply Chain Management"
64