The supply chain gang

No longer in its infancy, e-business proves its worth by streamlining operations along the supply chain.

The Internet for all its glory is about more than click and order, as many in industry have had to learn the hard way over the past few years. Rather than merely focusing on getting an ordered part or product to a buyer, companies that plan to succeed now know they need to have a state-of-the-art supply-chain process in place.

Effective supply-chain management (SCM) is a key component of the Internet's capabilities, and companies that have adopted such a strategy have reaped major rewards. Conversely, companies that were not proactive have suffered: much of former retail-giant Kmart's struggles are reportedly blamed on an ailing supply chain, including a system that poorly managed product demand and allowed inventory to stockpile. While not every supplier has yet to embrace the new landscape of e-business, those that have set the standard for efficiency and trust, bringing the relationship between buyers and suppliers to a new level.