Issues Relating to ESCM
The purpose of ESCM is to allow effective sharing of information like forecasts and orders among the supply chain partners. Utilization of data relating to customers and suppliers through Internet technologies results in a virtual corporation that facilitates real time information flow between various supply chain partners.
ESCM has many benefits, but together with the benefits, there are issues that must be addressed to improve the efficiency of ESCM. These issues include:
Security issues
Security is the most sensitive issue when information is shared or exchanged over the Internet. An organization has to ensure that the rightful recipient views the information. One way of doing this is to encrypt the data as this ensures that the data is secure and members of supply chain can view only that information which is relevant to them.
Changes to existing business processes
An electronic supply chain transforms a business process significantly. The changes arise in the way companies deal with each other. All channel partners should be willing to exchange information such as inventory levels, production schedules, forecasts, promotion plans, etc. Sometimes, partners may be apprehensive of sharing too much information. In order to tide over such apprehensions, a culture of openness and trust should be developed between all the channel partners.
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