To a world class organisation, a happy and satisfied customer is of the utmost importance. In a modern supply chain customers can reside next door or across the globe, and in either case they must be well served.
There are several capabilities that have been related to E-SCM flexibility. These includes logistics capabilities; inventory and fulfillment capabilities; managerial IT knowledge and IT deployment capabilities; information technology resources, IT
human resource and partner readiness capabilities etc. You can refer to the following literature review paper for details: - Siddiqui, A.W. & Raza S.A. (2015) Electronic Supply Chains: Status and Perspective”. Computers & Industrial Engineering, 88, 536–556. Link is also provided below.
As far as I am concerned facilitating the accurate information flow within the network is the main advantages of using E-SCM. As you know the lack of knowledge about on-time changes in the customers' needs have a huge effects on the network.
Hossein, I agree fully. Just to add it has not only contributed to bring accuracy as well as efficiency into the information flows, but it has also brought other changes including new business models such as dual channel supply chain model.
Atiq, yes you are right. What I wrote was the main advantages of ESCM from my point of view. Otherwise, all the things that are mentioned here are right.
Overall, the implications of IT infrastructure to create IT-enabled sharing capability suggest that the key to competitive performance through IT is not reflected solely in network complexity or the acquisition of cutting edge technology, but rather how firms use what they have and exploit the advantages generated from SCM partner relationships with both suppliers and customers. To improve an overall procurement process, one has to be able to qualify it, to know where the weaknesses are or what improvements can be done, compared to best practices as lean system. Such vision through IT is called Procurement Maturity Assessment. Procurement may possibly be one of the most appropriate, as it is the root of the whole Supply cycle is linked directly or indirectly to every step of SCM through the IT network flexibility.
Due to the increase in market competitiveness and complexity, the traditional statistical models of forecasting demand, based on time series, no longer met the needs imposed on businesses to maintain adequate levels of their inventory and supply interruptions. With the intent to meet these market demands, e-SCM systems appear to be more flexible. Nevertheless, even if we allow for a more adequate level of inventory and supply interruptions achieved mainly by the optimization of internal processes and the reduction in lead time, ERP systems did not contribute to reach the SCM's desired levels of inventory that we can aim at more competitive businesses. This is because ERP limits itself to an internal analysis of the business.
By contrast, inventory management depends on the consumption information. Aiming to improve even further the level of services delivered to the end consumer, new solutions have been developed, among them the e-SCM, which, since it makes consumption information available in real time, ends up being more dynamic and efficient than the traditional demand forecasting models, Therefore, the study can aims to analyze how the e-SCM can collaborate to have adequate levels of inventory and minimum interruptions in the supply chains.