Term Paper: Supply Chain Standards

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Supply Chain Standards

How will setting supply chain standards improve supply chain management?

The integration points between supplier and buyers are so complex and

numerous, accentuated in their complexity by the need for enabling

transactions across supply chains, that many industries need supply chain

standards to ensure their competitiveness. These supply chain standards

look to set the foundation for ensuring efficient and accurate transfer of

content between buyers, suppliers, partners, distributors and manufacturing

partners throughout a supplier network. Given the myriad of supply chain

interactions in these networks and taking into account the slight

variations each supplier has in their approach to delivering content to

buyers, the need for a consistent standard for communicating both content

and completing transactions is critical.

Many standards organizations look to first create taxonomies of all the

content-based interactions and transactions completed in a given industry's

supply chain. After having created the taxonomies, the specific content

sharing processes and transactions can be crystallized into a specific set

of instructions, or in the case of RosettaNet standard, a container-based

technology called Partner Interface Processes (PIP), according to Askegar

and Columbus (1). PIPs are designed for agility and conformance to the

taxonomies created, in the case of RosettaNet, for the high tech supply

chain. The role of PIPs is further strengthened in the taxonomy with the

support of transactions and order management (OM) key processes.

In their research, Askegar and Columbus found that the top market makers in

the high-tech industry including Dell, Hewlett-Packard, IBM, Intel, and

Ingram Micro could not agree on the use of PIPs for content (1) yet all

could agree on the most critical PIP of all, which is order management (3).

What these findings suggest is that while the RosettaNet framework is

considered a suitable alternative for automating transactions including the

Electronic Data Interchange (EDI) approach to batch processing, it is not

seen as suitable enough for sharing content across a supply chain. The

conclusion is that in the context of this specific standard, that those

processes and taxonomies directly relating to inventory and order

management velocity have the greatest payoff. Further, this shows that

distributed order management systems specifically in the high tech industry

are susceptible to substitute technologies. Further, this also shows that

even with industry taxonomies in place for managing content and exchanging

it across partners, buyers, and suppliers, each member of the supply chains

contacted by Askegar and Columbus are reticent to interlink on these

systems. It's common knowledge that many of the content management systems

throughout the high tech industry are often isolated and siloed within

specific departments, making them very difficult to use in the context of a

PIP-based approach… [END OF PREVIEW]

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Supply Chain Standards.  (2007, May 14).  Retrieved October 24, 2019, from https://www.essaytown.com/subjects/paper/supply-chain-standards/834373

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"Supply Chain Standards."  Essaytown.com.  May 14, 2007.  Accessed October 24, 2019.
https://www.essaytown.com/subjects/paper/supply-chain-standards/834373.