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326 Chapter 11 • Supply Chain Management

dependent more on agreed policy and stan- •Enterprise application integration process is
dards with other trading partners. very complex and has a multiphase life
•Integration with SCM system is of many cycle. If done correctly, it can produce a
types (e.g., supply chain, ERP system, and consolidated, consistent, and coherent view
enterprise application). In addition, there of critical information from anywhere and
are four levels of integration. Integration at anytime, with authorized access to differ-
has to occur at the information-sharing ent users in the organization. EAI has
level, at the design and planning level, at tremendous long-term benefits to the orga-
the workflow collaboration level, and at the nization, including improved efficiency and
new product development cycle. increased productivity at cost reductions.

Exercises

1. Your boss is interested in purchasing SCM soft- 2. Locate a company that you know or work at and
ware and has requested that you find out about the find out the details of the SCM system used in this
major SCM systems and the vendors. Write a two- company. Your survey could include questions on
page report with a short summary and a table of the SCM drivers for this company, the vendor used,
SCM systems, vendor names, major functionality components, benefits and drawbacks, and the level
or features of the software, key clients, licensing of integration between SCM and ERP or EAI at
cost, support and upgrade policy, and so on. Rank this company. Write a two-page report summariz-
the SCM system or vendor in terms of size and ing your findings as well as providing recommen-
popularity. dations for improvement.

Review Questions

1. What are the motivations for an organization to 6. Why is SCM implementation critical for the
have a good supply chain management (SCM) success of e-Business?
system? 7. What are the major components of e-SCM?
2. Define SCM in your own words. 8. What is e-procurement?
3. List the four drivers of SCM and how they impact 9. How should organizations design SCM systems?
the system’s responsiveness. Stand alone or collaborative?
4. What are the major types of SCM software? 10. What are the elements and benefits of SCM
5. Briefly describe the SCM processes. integration?

Discussion Questions

1. Discuss the relationship between a company’s 5. Discuss the differences between e-procurement
supply chain strategy and competitive strategy. and e-fulfillment.
2. Discuss the role and flow of SCM software. 6. Discuss the critical components in design of SCM
3. Which SCM process according to you is most systems.
critical? Explain why. 7. How is EAI different from the integration of SCM
4. Discuss the role of SCM in e-Business and and ERP systems? Explain.
e-commerce.