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Internet-Enabled SCM

Strategies and structures vary from company to company, but the goal remains the same. SCM will be a focal point of business strategy during the next decade. With so many product options—from forecasting and purchasing to warehousing and shipping—and with countless variations in SCM terminology used relating to various supply chain functions, corporate managers often struggle to improve their SCM infrastructures. In order to relieve the confusion, it is important to understand that SCM's basics are the same whether companies make PCs or conduct financial transactions.

Interenterprise Integration

Interenterprise integration is the ultimate goal of SCM. As Figure 9.4 illustrates, SCM is evolving from the current enterprise-centric models, such as Nabisco in the food industry, to more collaborative, partnership-oriented models, such as Procter & Gamble's and Wal-Mart's continuous-replenishment model in the consumer packaged-goods industry. Leading-edge companies, such as Intel and Dell in the high-tech industry, have gone even further to create a streamlined supply chain model with mass-customization and customer-direct capabilities.


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