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SGSCMF-W2-2001
E-Business and Supply Chain Integration
Stanford Global Supply Chain SGSCMF- W2-2001
Management Forum November 2001
E-Business and Supply Chain Integration
Hau L. Lee and Seungjin Whang
Stanford University
Abstract
E-business— the use of Internet-based computing and communications
to execute both front-end and back-end business processes — has
emerged as a key enabler to drive supply chain integration. Businesses
can use the Internet to gain global visibility across their extended network
of trading partners and help them respond quickly to a range of variables,
from customer demand to resource shortages. This paper examines the
impact of e-business on supply chain integration on four critical
dimensions: information integration, synchronized planning, coordinated
workflow, and new business models. By adopting e-business
approaches businesses can reap the benefits of supply chain integration
— reduced costs, increased flexibility, faster response times — more
rapidly and effectively.
1
SGSCMF-W1-2001
E-Business and Supply Chain Integration
I. Introduction
Over the past decade a combination of economic, technology and
market forces has compelled companies to examine and reinvent
their supply chain strategies. Some of these forces include the
globalization of businesses, the proliferation of product variety,
increasing complexity of supply networks, and the shortening of
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