E‐supply Chain: Using the Internet to Revolutionize Your Business

Citation

Poirier, C.C. and Bauer, M.J. (2002), "E‐supply Chain: Using the Internet to Revolutionize Your Business", International Journal of Quality & Reliability Management, Vol. 19 No. 4, pp. 485-486. https://doi.org/10.1108/ijqrm.2002.19.4.485.1

It is the worst of times in Internet‐oriented businesses and also, the time to rethink the role of the Internet. Despite the current market and economic plight, the Internet will continue to be the communication backbone to boost productivity and quality as years roll by. Learning, adapting, and growing with the Internet is a challenge facing business leaders today. The transformation to e‐business‐enabled organization will come from application of sound management principles. This will be the key to success.

Poirier and Bauer’s new book, E‐supply Chain: Using the Internet to Revolutionize Your Business, is written to provide a comprehensive introduction of the electronic supply chain to business leaders and quality/IT practitioners. The book’s thesis is simple and direct: the Internet will have an enormous effect on every aspect of business. All units in the supply chain must align themselves with the new digital format and transform themselves to e‐business‐enabled organizations. A detailed roadmap on how to construct a cyber model that complements the existing physical structure is proposed.

As we all know, best efforts need to be guided by good theories. An integral part of the good theory is the operation of a good system. To this aim, the authors discussed thoroughly the following system components: information technology, procurement, marketing and customer service, engineering and manufacturing, logistics, customer care, and human resources. The progress of each system component along the e‐transformation is clearly identified in four stages: internal supply chain optimization; network formation; value chain constellation; and full network connectivity. With this roadmap, readers can appreciate the major issues involved in e‐supply chain systems, and the process to address them in order to transform the entire supply networks. If management’s job is prediction, then this book is a major premise for providing such a prediction in the digital age. The benefits of transformation to the e‐business‐based supply chain network can be stated from two hierarchical levels: strategic and operational.

At the strategic level, the benefits are:

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  Information will replace inventory;

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  Coordination will replace functional silos;

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  Win‐win will replace sub‐optimization; and

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  Knowledge will replace condemnation.

At the operational level, the possible benefits include, but are not limited to, the following:

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  the highest possible fill rate,

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  on time delivery excellence,

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  minimal inventory, and

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  zero obsolescence.

Seeking the next level of excellence is management’s job. This effort demands a new way of thinking, and a shift in conceptualization regarding the new digital economy. A framework for understanding and explaining new digital reality is needed. Poirier and Bauer’s book arrived just in time to provide a broad model for understanding and rethinking Web‐based reality. This book is a must read for business leaders and quality/IT practitioners who want to prepare a transformation plan for the integration of physical supply chain and cyber channels.