On-Demand Supply Chain Management Systems: Current State of Research and Practical Solutions

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While the economic conditions are changing faster and faster, new technologies are invented at an enormous speed and competitive pressure increases due to globalized markets, companies have to change their behavior. Since companies supply chains are highly integrated nowadays, therefore ?competition is moving from one enterprise against another, to one supply chain against another supply chain? as stated by Chujo, Fukuda, Hisatomi and Wilson (2008, p.2). Supply chains have to increase their flexibility, responsiveness and efficiency in order to cope with the economic conditions or even better to achieve a competitive advantage. Traditionally Supply Chain Management (SCM) systems have been deployed in-house independently from each other and companies were not willing to either share data with their suppliers,transportation carriers or customers as stated by Lancioni, Smith and Oliva. This was caused by the fear of loosing competitive advantage when sharing this information. But it has been realized that the gains from collaborating with supply chain partners exceed the losses incurred by far. To enable Make-To-order and Just-In-Time (JIT) production techniques integration initiatives concerning material management were started and soon extended to Electronic Data Interchange (EDI), monitoring of transportation carriers and performance measurement of suppliers and transportation carriers (2000). Regarding the fact, that most enterprise systems evolved historically and hence are isolated, this integration is a non-trivial task, from a technological as well as from a process perspective.

Carl Heckmann – On-Demand SCM Systems Current State of Research and Practical Solutions

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