Extended enterprise

Extended enterprise
See also
Integrative function of logistics Product structure Logistics chain Value chain model Price and non-price competition Principles of Supply Chain Management Efficient Consumer Response Operational management Logistics system

Concept of extended enterprise is the most advanced form of added value chain concept. Treating supply chain as "extended enterprise" is associated with a specific approach to enterprise collaboration, which involves the elimination of many existing barriers between entities. The primary goals are to enable the management and coordination of movements of products ranging from raw materials to finished goods purchased by consumers and other users.

Implementation of the presented concept is associated with a change in the approach to business management. The functioning of the market can not be seen only as lonely struggle with competitors and the desire to win benefits with suppliers or customers. It is necessary to understand that everyone involved in the production and distribution of the product should work closely in providing the highest possible benefits to end-users and customers.

References

• Sheridan J.H., Managing the Value Chain for Growth, Industry Week, vol. 248, is. 16, September 1999
• Pyke, D. F., & Johnson, M. E. (2004). Sourcing strategy and supplier relationships: alliances versus eProcurement. In The Practice of Supply Chain Management: Where Theory and Application Converge (p. 77-89). Springer US.