Supply Chain

Definition
All activities associated with the flow and
transformation of goods from raw materials to end users
Upstream Internal Downstream
2nd Tier Distribution
Customers
Supplier 1st Tier Centers
2nd Tier Supplier Assembly/
Supplier Manufacturing and
1st Tier
Packaging
2nd Tier Supplier
Packaged Retailers
Supplier Cereal
Grain Grain Processing Cereal
Packaging Distributor Customers
Producer Facility
Paperboard
Corrugate
Manufacturer Labels Store
Word
Lumber Label
Company Manufacturer
© Prentice Hall, 2000 1
 Characteristics of B2B EC

Key Entities of B2B EC

Buying company with procurement management perspective
Selling company with marketing management perspective
Electronic Intermediary, an optional third party directory service
provider (the scope of service may be extended to order fulfillment)
Deliverer who can fulfill a just-in-time delivery
Network platform such as the Internet, VAN, intranet and extranet
Protocol of communication such as EDI and comparison
shopping possibly using software agents
Back-end information system possibly implemented using the
intranet and Enterprise Resource Planning (ERP) systems

© Prentice Hall, 2000 2