Electronic trading in the supply chain: a holistic implementation framework

Discusses the effect of electronic commerce on the management of the supply chain. Particular emphasis is placed on electronic data interchange (EDI). EDI has in the past been confined to larger companies. However, as more companies are becoming switched on to the benefits, so it is becoming a prerequisite for all businesses. The benefits and costs associated with electronic commerce are highlighted using results from a survey and follow‐up cases. Analysis showed that the main benefit is faster transactions. Additionally, better co‐operation between trading partners, reduced administration costs and improved accuracy resulted. The impact of the Internet on electronic commerce, including possible future directions, is then discussed. The paper closes by proposing a framework to assist companies with the change towards introducing electronic commerce into the supply chain.