Globalization
and a connected economy have seen the emergence of several business models and
practices such as collaborative commerce, e-business, outsourcing, vendor managed
inventory, multi-channel strategies, etc. These business models are not only changing
the scope and nature of today's business environment drastically, but also the
applications supporting them. This trend has called for incorporating new capabilities
to support a seamless `virtual enterprise,' which has become a critical factor
for success. Above and beyond these business scenarios, capabilities such as agility,
innovation and optimization have arisen as cornerstones for enterprises to excel,
now and in the future. Enterprises can realize such capabilities by subscribing
to a new IT mantra, i.e., converging information and processes present in `silos'
of related systems across the enterprise. However, limiting to internal integration
is not adequate in today's increasingly connected and outsourced business environment,
as the delivery of most products or services involves collaboration with globally
distributed supply and trading partners.
Suppliers
and channel partners, once considered as the source for business inputs and support
have now transformed into sources for gaining strategic advantage. They are influencing
costs, product development, lead times, inventory turnover, manufacturing schedules
and the timeliness of delivery of goods and services. Consequently, they are directly
impacting the financial performance and profitability of the enterprise. While
managing and improving supply chain is driving collaborative performances in the
extended enterprise landscape, establishing and optimizing `strategic relationships'
with the supply and buy-side partners is now emerging as the business imperative
for any enterprise to gain the strategic edge. |
