Recalibrating Demand-Supply Chains for the Digital Economy

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Vol: 12, Issue: 2

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Rai, Arun; Bush, Ashley A.
Supply chain configuration;Digital coordination;Supply chain transformation;Demand fulfillment
article description
Firms are integrating segmented supply chains to improve their dynamic resource management processes and reduce buffers, such as lead times and inventory levels. Yet, supply chain integration, if inappropriately conceptualized, can have a detrimental impact on market responsiveness and value generation capability. Innovations in Internet technologies, e-business, and process standards, such as RosettaNet, are challenging assumptions to manage resources across supply chains and to create value. As a consequence, firms need to reevaluate supply chain partners, processes, and enabling digital capabilities. Five supply chain configurations, i.e., integrated firm, fragmented chains, end-to-end integration, modular chains, and solution webs, are profiled. Assumptions for value creation and process capabilities for resource management that are associated with each configuration are discussed. Key issues in moving from one configuration to another are evaluated.