The Philosophy of Supply Chain Management in the New Economy: Net Readiness in the Net Supply Chain

Topics: Supply chain management, Logistics, Supply chain Pages: 2 (480 words) Published: March 24, 2013
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. 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...
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