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• Figure 2 describes the value-adding activities of an e-supply chain. In networked e-supply chains, information flows are integrated by ICT, particularly the Internet technology. Supply chain members are directly connected with customer demands and real-time operational information of all supply chain stages.

• With the help of intranet, an organization can maintain communication within the boundaries of the company. It is said that the ultimate goal of any effective SCM is to reduce inventory. E-supply chain enables to link the supplier with the customer by exchanging information instantaneously. The organization has sufficient inventory when required.

• Electronic applications enhance information flow between production and sales forces to improve sales force productivity. Workgroup communication and electronic publishing of internal business information are likewise made more efficient. We shall now discuss how e- business can provide a virtual supply chain over the internet.

The recent advancement of Internet technology has brought more powerful support to improving supply chain performance. In this context, e-supply chain management becomes a new term that distinguishes itself by net-centric and real-time features from traditional supply chain management.

Figure 2 describes the value-adding activities of an e-supply chain. In networked e-supply chains, information flows are integrated by ICT, particularly the Internet technology. Supply chain members are directly connected with customer demands and real-time operational information of all supply chain stages.

With the help of intranet, an organization can maintain communication within the boundaries of the company. It is said that the ultimate goal of any effective SCM is to reduce inventory. E-supply chain enables to link the supplier with the customer by exchanging information instantaneously. The organization has sufficient inventory when required.

The term, supply chain, is a simplified description for vertically related business processes. Nowadays, it is more frequently referred as supply networks or supply chain networks because a company is likely to be involved in more than one supply chain and the related companies form business networks.