| Chapter 1: | Objectives, methodology, approach and definition of terms |
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Michael Dell, founder of the Dell company,66 describes a virtually integrated organization as an organization that is not networked by physical objects of wealth, but by information67 – or, alternatively expressed, by information technology (IT).
The Supply Chain is, therefore, a component of a superior Electronic Business (E-Business) concept. This association is illustrated by the definition developed by Seibt:
An organization practices Electronic Business, if several or all business processes
In the interests of clarity, it is important to differentiate here between E-Business and the related concept of Electronic Commerce (E-Commerce) that generally denotes the electronic execution of business transactions.69 The part of the E-Business concept relevant to the Supply Chain is also often referred to as Electronic Supply Chain Management (E-SCM).70
Ross describes E-SCM as the tactical and strategic components of the business strategy that aim to combine the common production capacities and resources of overlapping SC systems by means of internet technology, with the objective of creating customer advantages.71 The main difference from the “traditional” SCM or respective value chain management is thus seen in the fact that information technology is applied in the process in order to support the optimal completion of the flow of goods and information.72
1.3.2 Categories of Supply Chains
The definitions included above focus on various Supply Chain features or characteristics. Building upon these, however, a variety of extra categorizations should also be included in the equation, and these are summarized below.