I. Introduction
In the past decade, joint power of economic, technology and markets forced the company to investigate and thoroughly transform their supply chain strategy. These strengths include enterprise globalization, product type combinations, and increased complexity of supply networks, and shortening product life cycles.
In order to maintain a leading competitive advantage, the company is trying to be a "supply chain integration" approach to obtain a larger supply chain partner cooperation and adjustment. Information technology, especially the Internet plays an important role in promoting supply chain integration. When most significant roles of Internet appears in electronic commerce, Internet is likely to interact to B2B, especially in the field of supply chain integration. The Internet can redefine the backend operation - product design and development, procurement, production, inventory, distribution, after-sales service support and even marketing - how to change the role and relationship between the parties, predict new Supply network, service and business model.
The term "e-commerce" is obviously different from "Electronic Commerce", which is used to describe the goal of adopting Internet acceleration to achieve supply chain integration. In the article, e-commerce specifically refers to "preparation and implementation of the front and back-end operations" in the supply chain of the Internet.
In fact, e-commerce has already had a huge impact on supply chain integration, but it can be safely said that we tightly dig all the things. The new model is constantly evolving. By using e-commerce in the supply chain, companies can recognize the improvement efficiency, improve asset utilization, faster investment market, reduce the total order fulfillment cycle, enhance customer service and improve the reaction speed, penetrate the new market, and get more High assets returns and ultimate shareholders value, companies can get huge returns.
This article examines the impact of e-commerce on supply chain integration, emphasizes four major areas: information sharing, synchronous plan preparation, workflow coordination, and new business model. It expounds the power of e-commerce in innovative technology solutions. Finally, the article discusses how the supply chain performance control will become an important successful factor in obtaining the inner advantage of supply chain.
II. Supply Chain Integration and E-Commerce
How do we or where can I see the impact of e-commerce on supply chain integration? We can see these impact in four main dimensions:
Information integration synchronous preparation plan workflow coordination new business model
These four dimensions accelerate the level of integration and coordination between members in the supply chain in order, accounting for an important position in all guidance services.
Table 1: Supply Chain Integration Dimensions
Information Integration
Information integration refers to sharing information between members within the supply chain. This includes any form of data that can affect the actions and performance of other members of the supply chain. Some examples include: demand data, inventory status, capacity diagram, production schedule, promotional plan, and shipping schedule. In fact, this information can be easily acquired only on real-time and online, without having to pay huge efforts.
Synchronization plan
Synchronization planning is a plan for joint design and implementation of product promotion introductions, forecasting and replenishment. In essence, synchronous plan preparation details should do what should be done in the case of information sharing; there is a common agreement based on the specific actions based on shared information between partner members. Therefore, the supply chain member can coordinate their order fulfillment programs so that the level of replenishment that meets the same goal - the final customer needs.
Workflow coordination
Workflow coordination refers to the latest, automated workflow between supply chain partners. Here, we will integrate with further research, mainly, not only on the basis of sharing information, but what "do", but "how to do". For example, from the manufacturer to the supplier's procurement action may be closely linked, so that the company can get the efficiency of accuracy, time, cost measurement. Product development actions containing multiple companies can also be integrated for the same efficiency. In the ideal state, the supply chain partner relies on the technical solution to truly implement multiple or all internal and cross-enterprise workflow steps.
New business model
The supply chain integration taken by e-commerce means that it is not only an improvement in terms of efficiency. Many companies have discovered all new methods for guiding the business and even new services that were not possible before. E-commerce allows partners to redefine logistics, which can change the role and responsibility of the member to improve the overall supply chain. A supply chain network can jointly create new products, pursue large-scale customization, infiltration, and segment customers. The emergence of new rules for supply chain games is the result of Internet promoting integration. Integration = collaboration
There is no tight join between organizational relationship between companies, and integration cannot be completed. This connection happens in many levels:
The exchange channel must be well defined and maintained, role and responsibilities clearly clearly explain the measurement of the performance of the supply chain member needs to be explained and supervised. Members within the supply chain may also need to be responsible for certain performance measurements of other members, and some companies may be responsible for some performance measures. This extension performance measure encourages cooperation and coordination between supply chain partners. In order to integrate the supply chain, all members must reach a consistent action incentive. Incentive Alliance needs a detailed definition of the operation mechanism. Under this mechanism, the risks and related gains of integration should be equal to equal sharing, and each member's incentives need to be comparable to their investment and risk.
Any successful supply chain integration effort is based on close cooperation, which is driven by a perception of common interests. As we have seen, e-commerce is also needed to take a considerable path to cultivate trust and commitment.
Technology and the role of Internet
Supply chain integration is not a new thing, and many companies use it as one of the ways to compete. Information technology has also become a major factor. Relational database, customer / server device, TCP / IP network protocol, multimedia, wireless technology, and latest Internet have spurred new innovation and new things in their respective ways.
E-commerce or Internet processing mode appears as the most mandatory factor that may be the supply chain integration. Because it is open, standard and substantially universally exist, companies can use Internet to achieve global visual operations through their trading partners, helping them to change business conditions such as consumer demand and resources. Sex changes to make a fast reaction. The following sections provide sufficient evidence in this regard, using a large number of companies and industries explain how the Internet changes their supply chain strategies at all.
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