The effectiveness of information systems in supporting the extended supply chain

P. Edwards, Melvyn Peters, G.J. Sharman

Research output: Contribution to journalArticleAcademicpeer-review

84 Citations (Scopus)
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Abstract

Abrupt changes in the economic environment are forcing businesses to absorb and integrate new ways of delivering value to their customers. The opening of new markets, the increase in globalization, and the growth in cross-border mergers and acquisitions have focused the attention of many companies on how best to deliver their products and services across a complex network of suppliers, manufacturers, and intermediaries. Greater differentiation of products and services through an emphasis on customer service combined with the emergence of new technology has provided an incentive for many companies to rethink their business models. At the same time, many companies are recognizing that, in order to provide global reach and local responsiveness, the traditional vertically integrated business model requires re-evaluation. To meet these growing challenges, more and more companies are looking to co-operate with their supply chain partners. In order to gain supply chain efficiencies, companies need to exchange large amounts of planning and operational data, ranging from information for annual contracts and periodic progress reporting to real-time delivery and invoicing data. The emergence of the Internet and new software applications has provided an opportunity for some companies to move towards an extended enterprise business model--{)ne that enhances value across traditional corporate boundaries. To support the transfer of information between supply chain partners there is a requirement to utilize technology in an effective way. But in the last decade, business information systems development has focused on internal process integration of traditional functions, such as sales, production, and materials management. The prime driver of this trend has been the implementation of Enterprise Resource Planning (ERP) systems, such as SAP R/3, Baan, and Oracle.
Original languageEnglish
Pages (from-to)1-28
Number of pages27
JournalJournal of Business Logistics
Volume22
Issue number1
Publication statusPublished - 2001

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