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Another definition is the management of a chain or of operations and centres through which supplies move from the source of supply to the final customer or point of use (Chng, 2000). In essence, the supply chain starts with the extraction of raw material (or origination of raw concepts for services), and each link in the chain processes the material or the concept in some way or supports this processing. The supply chain thus extends from the raw material extraction or raw concept origination through many processes to the ultimate sale of the final product, whether goods or services, to the consumer.Many organizations, often too late, are now realizing that they should have paid as much attention to their internal business processes, their orderfulfilment resources and systems, and the integration of those processes and systems with those of their suppliers of goods and order-fulfilment services, as they did to their customer-facing Web site. The need is for a seamless end-toend ‘order to cash’ process incorporating the Web site, the business’ accounting systems and the delivery mechanism. The accounting needs should embrace, as a minimum, accounts payable, accounts receivable, inventory, purchase orders, invoicing and credit control.The delivery mechanisms in many organizations cannot cope, when Internet trading is added to the traditional market offering, with the requirement for a large number of small orders requiring, to all intents and purposes, instant shipping. They may have historically been shipping relatively large orders to a few intermediate supply chain points on a two to three day lead time basis. (Chopra, 2003)The business processes, and perhaps more importantly the business systems, that are required to manage a large number of small orders are different from those required to manage the traditional business. (Dellarocas, 2001) The potential for making mistakes is high when an organization attempts to manage Internet business in the same way as the traditional business. All of the effort and resources that went into winning the business could be wasted as a result of not retaining that business because of the inadequate processes and systems in place to support order fulfilment.The situation is made even more complex by the fact that the rise in Internet trading has provided the potential to

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  • Pages: 12 (3000 words)
  • Document Type: Essay
  • Subject: Unsorted
  • Level: Undergraduate
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