readings icon presentation iconquiz iconresources icon

IT and supply chain management

Overview

Within 18 months, all of our suppliers will supply us on the Internet, or they won’t do business with us. (Jack Welsh, CEO, General Electric, statement made 2001, cited in Donovan, 2003:2)

This chapter will overview the role and effect e-commerce has on supply chain management. We will revisit the supply chain from an ‘e’ (electronic) perspective. What appears to be the addition to these common supply stages of the simple letter ‘e’ in reality amounts to a profound change to these activities through deployment of information technology.

As we have established in earlier chapters, e-commerce is the electronic enablement of physical activities using IT. It usually involves goods and services being selected, ordered and paid for via the Internet, though it can also involve various services, electronic processes and transactions that occur within and between businesses (Chapter 10).

Confronted with the global drive to lower costs, improve service and responsiveness to customer demands and accelerate the delivery cycles, businesses have had to confront supply chain inefficiencies. The need to address supply chain inefficiencies has been reinforced by the efficiencies IT deployment can bring not only to transaction processes but also to collaboration between businesses involved in the logistics and fulfilment processes.

In this chapter we will specifically examine e-commerce as a backdrop to:

Learning outcomes

At the completion of this chapter, you should be able to:

Next page next page arrow