Streamlining the Supply Chain With Electronic Commerce: A Key to Success in the Digital Economy

The central aim of supply chain management, to have the right product in the right quantities (at the right place) at the right moment at minimal cost. Advancements in information technologies have enabled major innovations in the reengineering of industry's supply chains, redefining the ways companies operate their supply chains. New ventures have emerged to create values for business partners and the consumers in supply chain integration. Information technologies have advanced supply chain integration and coordination at a cost-effective way. In addition, technological developments in this century have transformed the majority of wealth-creating work from physically based to "knowledge-based." The Electronic commerce is the new paradigm shift in business. Obviously, information technology is an essential component of electronic commerce. The proper integration of supply chain with electronic commerce should bring an enormous value to a digital firm. The paper examines the effect of information technology (IT) on the Supply Chain Process and explains how EDI and Electronic Commerce have potential to revolutionize the integrated supply chain management. The author suggests that the organization must be adaptive to change with the advent of new technology to remain competitive in this era of digital economy.