Friday, July 2, 2010

What does supply chain integration mean?

When eBusiness is integrated with ERP, the whole extended system provides a vision of business processes that span multiple businesses and enterprises. In the most ideal case companies should be able to connect disparate platforms, applications and data formats across the value chain, including not only suppliers but customers as well. Furthermore, companies should retain the flexibility to change and add functions to applications as business needs evolve. Companies need to be able to adapt their ERP systems to the emerging world of eBusiness.

The major partners of the supply chain are the suppliers, the organization and the consumers and any other partners involved in the business transactions (like banks, middlemen, etc.). Supply chain refers t the complex network of relationships that organizations maintain with trading partners to procure manufacture and deliver products or services. Supply chain encompasses the facilities where raw materials, intermediate products and finished goods are acquired, transformed, stored and sold.

These facilities are connected by transportation links along which materials and products flow. Supply chain consists of many companies, individuals and institutions. Supply chain management is the coordination of material, information and financial flows between and among all the participants.

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