Supply Chain Integration Essay Example | Topics and Well Written Essays - 3750 words

Supply Chain Integration - Essay Example The study "Supply Chain Integration" will help to understand than the coordination of information for the common benefit of businesses in the supply chain is more effectively accomplished via the internet. The internet in supply chain integration is important for the sharing of information relative to supply and demand in a more timely manner and as such signifies the significance that information and knowledge have in the creation of â€Å"value†. It is useful for efficiently facilitating the means for adopting â€Å"an integrated approach throughout the supply chain† and allows for the more effective balancing of â€Å"autonomy and control† among the individual supply chain partners. GE’s online business network is indicative of the significance of using the internet for integrating supply chain management. GE’s online trading process is a significant improvement on the prior process which involves prolonged â€Å"labor intensive contract biding and award processes†. By using the internet, businesses are able to reach out to new markets by providing reduced costs for entrants, less â€Å"complexity with more flexibility† and more importantly offer a far more efficient method for doing business. Another development in international business behavior necessitating integrating the supply chain via the internet and via tB2B is the tendency to outsource and the formation of tactical partnerships among industries. The internet provides a forum by which supply chain integration is accomplished at minimal cost with optimal success.... The internet in supply chain integration is important for the sharing of information relative to supply and demand in a more timely manner and as such signifies the significance that information and knowledge has in the creation of â€Å"value† (Graham & Hardaker, 2000, p. 287). Graham and Hardaker (2000) maintain that the internet is useful for efficiently facilitating the means for adopting â€Å"an integrated approach throughout the supply chain† and allows for the more effective balancing of â€Å"autonomy and control† among the individual supply chain partners (p. 287). GE’s online business network is indicative of the significance of using the internet for integrating supply chain management (Graham & Hardaker, 2000). GE maintains an online trading process network which facilitates the transaction of approximately US$1 billion in business among over 1,400 suppliers located around the world. GE’s online trading process is a significant improvem ent on the prior process which involves prolonged â€Å"labour intensive contract biding and award processes† (Graham & Hardaker, 2000, p. 287). By using the internet, businesses are able to reach out to new markets by providing reduced costs for entrants, less â€Å"complexity with more flexibility† and more importantly offer a far more efficient method for doing business (Graham & Hardaker, 2000, p. 287). Another development in international business behaviour necessitating integrating the supply chain via the internet and via tB2B is the tendency to outsource and the formation of tactical partnerships among industries. These kinds of developments obviate the need for information and