Virtual supply chain
Q1. What is the virtual supply chain?
Virtual supply chain (VSC), which has been actively implemented by Amazon.com, is a supply chain integrating several different businesses in the sequence of delivering a product or service to the final customer. Since online retailers themselves do not manufacture any product, the cooperation with actual manufacturers is very important for customer service. It makes suppliers, manufacturers, distributors and warehousing agents of different tiers work as one body, although they are not one body in a physical sense. Thanks to advanced information technology, many different bodies can compose one virtual organization by sending, receiving and sharing supply and purchase information via internet or cloud, therefore enabling cross-checking of information like inventory levels, order status or product delivery schedule. Virtual supply chain also brings the concept of virtual inventory, which includes all of the products or services no matter where they are located along the supply chain. Thus, a virtual supply chain relies on the flow of information, both inside an organization and also between the relevant organizations.
Virtual supply chain has become vital for e-commerce retailers like Amazon.com because in e-commerce, retailers need to provide customers with wide variety and also enough quantity of products with speed. Virtual supply chain also enables online retailers to respond instantly to fluctuations of the demand on products or services they provide by quickly increasing or decreasing production capacities, reducing both capacity redundancy and shortage.
Q2. What are the key properties of virtual supply chain? In order to a virtual supply chain works successfully, there are several key properties required. Most fundamentally, all parties should be in a strategic alliance. They should be working for each other, even if that would be a temporary relationship. And of course, there should be well-developed web-based
Virtual supply chain (VSC), which has been actively implemented by Amazon.com, is a supply chain integrating several different businesses in the sequence of delivering a product or service to the final customer. Since online retailers themselves do not manufacture any product, the cooperation with actual manufacturers is very important for customer service. It makes suppliers, manufacturers, distributors and warehousing agents of different tiers work as one body, although they are not one body in a physical sense. Thanks to advanced information technology, many different bodies can compose one virtual organization by sending, receiving and sharing supply and purchase information via internet or cloud, therefore enabling cross-checking of information like inventory levels, order status or product delivery schedule. Virtual supply chain also brings the concept of virtual inventory, which includes all of the products or services no matter where they are located along the supply chain. Thus, a virtual supply chain relies on the flow of information, both inside an organization and also between the relevant organizations.
Virtual supply chain has become vital for e-commerce retailers like Amazon.com because in e-commerce, retailers need to provide customers with wide variety and also enough quantity of products with speed. Virtual supply chain also enables online retailers to respond instantly to fluctuations of the demand on products or services they provide by quickly increasing or decreasing production capacities, reducing both capacity redundancy and shortage.
Q2. What are the key properties of virtual supply chain? In order to a virtual supply chain works successfully, there are several key properties required. Most fundamentally, all parties should be in a strategic alliance. They should be working for each other, even if that would be a temporary relationship. And of course, there should be well-developed web-based