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...Before widespread expansion of the Internet, most supply chains were operated according to the so-called Traditional Model, where companies doing business together did so "directly" (i.e. with separately managed links at every stage between suppliers and customers); this model is illustrated in the figure below, in which the blue lines represent information, financial, and material flows:
With the Internet emerging as an important way to conduct business, an alternative model has emerged, often called the Net Model, in which intermediate nodes link many buyers and sellers. This model is illustrated in the figure below. As we'll see later on, these intermediate nodes can be exchanges (either public or private) or e-hubs; again the blue lines represent information, financial, and material flows (although material flows may bypass the hub to minimize transportation costs)...
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SCM104 Specifications
Rating:
(962 ratings)Total Reading Time: Approx. 1 hour (for average readers)
Word Count: Approx. 10,800 words
Author: Dr. Warren H. Hausman
Professor of Management Science & Engineering, Stanford University
Certificate: Counts toward Fundamentals of Supply Chain Management
Datasheet: 
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Contents
- Getting Started
- Traditional vs. Net Model
- Framework for Internet Impact
- Example: Cisco
- Example: Dell
- Example: Adaptec
- Examples: Zara, Texas Instruments
- E-Business Relationships
- Spot Markets vs. Contracts
- Spot Market Simulation
- Requirements
- Web Services
- RosettaNet
- Future Supply Chains
- Conclusions
- Test Your Knowledge
- Feedback