Process Flow Supply Chain Management

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Running head: PROCESS FLOW: SUPPLY CHAIN MANAGEMENT

PROCESS FLOW: SUPPLY CHAIN MANAGEMENT AND ELECTRONIC DATA INTERCHANGE (EDI)

Clifford Butler

Operation Management

November 1, 2009

Table of Contents
Abstract……………………………………………………………………………………………3 Introduction………………………………………………………………………………………..4 The Internet-based supply chain system for mass customized markets………..………………..4 The role of electronic data interchange (EDI) and the Internet in supply chain integration..…...5 Why do the mass customization of demands warrant a new business model…..………………6 The LEAP communication infrastructure, analyze how EDI integrates into the process flow...6

The necessity of a high degree of EDI presence in the Supply Chain Process Flow.………......7

Conclusions7
Reference…………..…………………………………………………………………………….. 8

Abstract

This paper reviews the case study by Ghiassia and Spera (2003), Defining the Internet-based supply chain system for mass customized markets. Many corporations have identified their success by the way in which they set up their business operations. The process flow or the supply chain management has become a fundamental function the way in which consumers receive their products (Reid and Sanders, 2007). This paper analyzes the process of the internet based supply chain system for mass customization becoming more of necessity for many corporations. Which system is better suited for the supply chain management of mass production is evaluated. The greatest benefit of this matter which is globalization of the overall process flow is explored (Reid and Sanders, 2007).

Introduction
Since the 1970’s Electronic Data Interchange (EDI) has emerged (Reid and Sanders, 2007). The EDI has modernized and made the supply chain process more efficient. In addition to Reid and Sanders (2007), another study in the supply chain management is the case study of the “Defining the Internet-based supply chain system for mass customized markets” by Ghiassia and Spera (2003). The assessment by Ghiassia and Spera (2003) further emphasizes the impact of internet use to the supply chain system and how it has changed mass customized markets, the role of electronic data interchange (EDI), the demands of new business models due to mass customization, the LEAP infrastructure, and the EDI presence in the supply chain process flow. The Internet-based supply chain system for mass customized markets. Reid and Sanders (2007) has defined a supply chain system as a network of all the activities involved in delivering a finished product to the customer. In fact, Ghiassia and Spera (2003) supports the above statement about the mass customized markets, by explaining how the infusion of information technology into business operations is drastically changing the way businesses operate. It is apparent through this case study that large businesses can achieve more efficiency through internet-based supply chain system. Ghiassia and Spera (2003) has outlined in their case study how managing supply chain relationships in this new environment, necessitates the adoption of a new production characterized by centralizing a strategy but decentralized operation, a synchronized supply chain system, a collaborative partnership among suppliers, a new interoperable open information system infrastructure and a agent-based trading system. An excellent example of a company is provided by Reid and Sanders (2007), Dell Computer Corporation who uses supply chain management has optimized their overall business sustainability, competitive advantage, quick response time, low cost, state-of-the-art quality design, and operational flexibility (Reid and Sanders, 2007). Based on the finding of the above authors, it is safe to conclude that many large companies who occupy a mass customize market will have to rethink their overall operations production, if they have not done so already. The role of electronic data interchange (EDI) and...
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