Optimizing Supply Chains through Service-Oriented Architecture

Supply chain is defined as a system of suppliers, producers, distributors, retailers and customers where material, financial and information flows connect participants in the directions. Most supply chains are composed of independent agents with individual preferences. It is expected that no single agent has the power to optimize the supply chain. Supply chain management is now seen as a governing element in strategy and as an effective way of creating value for customers. Service Oriented Architecture (SOA) is a systems architectural tool that support mission-critical transactions and improve systems integration for enterprises. A discussion on how to optimize enterprise’s supply chains by the entire development service-oriented architectures, to centralize information, and to increased information flows, reduced uncertainty, and a more profitable supply chains. In the paper, Modeling Dynamic Supply Chain Management (MDSCM) system is put forward, it allows a producer to select, dynamically from the MDSCM Registry, suppliers of components, based on the price, availability, and delivery time of those components. A producer can use one of several strategies to aggregate customers’ orders before it processes them and to accumulate suppliers’ quotes before it decides on a particular supplier. The use of a Service Oriented Architecture, such as MDSCM, can substantially improve the efficiency of a supply chain.