The Philosophy of Supply Chain Management in the New Economy Free Essays

THE PHILOSOPHY OF SUPPLY CHAIN MANAGEMENT IN THE NEW ECONOMY: NET READINESS IN THE NET SUPPLY CHAIN The use of Internet in business can bring change in business sector that can lead the traditional enterprise to collapse. Globalization processes, massive implementation of Information Technology and the establishment of virtual enterprises are the basic elements in the era of the Digital Revolution. Net readiness is the ability of the enterprise to adapt to the new technologies. We will write a custom essay sample on The Philosophy of Supply Chain Management in the New Economy or any similar topic only for you Order Now With the vast development of internet technology, there is a tremendous development in the supply chain management and traditional SCM has been transformed into e-SCM. So the new economic system is largely based on the information technology. Based on a huge implementation of Information Technology foundations for the New Economy are laid. D. Tapscott gave 12 principles of the New Economy. A continuous process of adaptation is required to these processes to meet evolving consumers’ needs. New principles of operation are applied by new economy enterprises. Within the Time Based Management an ever-increasing effectiveness is guaranteed in the implementation of the Internet. Physical, informational and financial flows are present on the logistics pipeline. Virtual organizations are treated as production systems used to create products and satisfy customers’ needs. These virtual organizations utilize a concrete supply that is input and output to satisfy the needs and ensure expected profit. Users, telecommunications businesses and suppliers are the three groups of enterprises that utilize Internet infrastructure. They offer a wide variety of services to both traditional and virtual enterprises, which is based on the ‘5C’. Based on the flow of goods and services the created virtual chain is connected with traditional supply chain. The synergy effect of traditional business solutions and Internet technology applications are the two specific characteristics of the supply chain functioning. The utilizations of the resources and advantages of e-SCM can be directly related to the term called â€Å"Net Readiness† (NR) described by the employees of Cisco which means that the ability of the existing enterprise to adapt to new technologies and conduct their activities using the web. NR evaluation chart is the main NR research tool, which describes the level of involvement of an enterprise in e-business solutions. In relation to the best representative in its group it enables the position of the enterprise to be determined. Enterprises are divided into five groups: Internet visionary, Internet expert, Internet savvy, Internet aware, Internet agnostic. Modern supply chains have many advantages, but they have threats resulting from characteristics of e-economy. Due to a world-wide economic stratification and a clear division into digital civilization and outsiders limits in new opportunities can be noticed. Due to the e-businesses in the new economy, the society is evolving into information society and a lot of innovative techniques which saves time are being implemented which adds value to the production and customer service. How to cite The Philosophy of Supply Chain Management in the New Economy, Essay examples