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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). I essence, te supply chain starts with the extraction of raw material (or origination of raw concepts for services), ad each link in the chain processes the material or the concept in some way or supports this processing. Te supply chain thus extends from the raw material extraction or raw concept origination through many processes to the sale of the final product, wether goods or services, t the consumer.

Mny organizations, oten too late, ae now realizing that they should have paid as much attention to their internal business processes, teir orderfulfilment resources and systems, ad the integration of those processes and systems with those of their suppliers of goods and order-fulfilment services, a they did to their customer-facing Web site. Te need is for a seamless end-toend ‘order to cash’ process incorporating the Web site, te business’ accounting systems and the delivery mechanism. Te accounting should embrace, a a minimum, acounts payable, acounts receivable, iventory, prchase orders, ivoicing and credit control.

Te delivery mechanisms in many organizations cannot cope, wen Internet trading is added to the traditional market offering, wth the requirement for a large number of small orders requiring, t all intents and purposes, istant shipping. Tey may have historically been shipping relatively large orders to a few intermediate supply chain points on a two to three day lead time basis. (hopra, 2003)The business processes, ad perhaps more importantly the business systems, tat required to manage a large number of small orders are different from those required to manage the traditional business.

(ellarocas, 2001) The potential for making mistakes is high when an organization attempts to manage Internet business in the same way as the traditional business. Al 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. Te situation is made even more complex by the 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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