Question

Locate two articles on the topic of virtual supply chains. Synthesize each article into a one-page summary using your own words (for a total of two pages). Include the following:

 • Definitions of virtual supply chains
 • How virtual supply chains function
 • Advantages of virtual supply chains
 • Disadvantages of virtual supply chains
 • How virtual supply chains have reshaped business sectors

Answer 1

A supply chain (network) that is connected through electronic links and characterized by its inherent flexibility to quickly adopt and adapt to changes in the business environment. Meaning that, new members can be continually added and old members deleted or have roles reassigned to them within the chain. As a result, a virtual supply chain is a combination of a computer-based structure and a temporary organized supply chain network.

Supply Chain as a Service offers companies a new flexible service model to attain virtual economies of scale day one without all the upfront investment in people, processes, and equipment. Supply Chain as a Service is an innovative new approach to supply chain that allows companies to generate a 4-5x return on investment by partnering with one service partner to support all or part of their supply chain needs including procurement, production control, manufacturing, quality, warehousing, and logistics. Companies that leverage Supply Chain as a Service realize lower and variable cost structures, leverage proven technology and systems, and attain instant scalability.

advantage is that a virtual supply chain that connects all parties as one is an item that is necessary to reduce costs and increment productivity (Chandrashekar, 1999). Virtual supply chains offer adaptability and flexibility to supply chain management, optimizing the capacity to modify the supply chain at will as required to react to modifications in the business atmosphere. It has the ability to reconfigure organisations structure providing customised solution.

drawbacks of virtual supply chains are that it is expensive to enforce technical components of a virtual supply chain. Integration with suppliers is sophisticated and time-consuming (Chandrashekar, 1999). Establishing associations with particular suppliers can be challenging owing to geography. Small glitches could result in huge losses, and the impacts of miscalculation can take years to correct

Virtual supply chains have reshaped business sectors in that normal system principles thatenable efficient collaboration, communication, and coordination among dissimilar vendors allow everyone to work together as if they were a single enormous organization Moreover, internet based infrastructure enables the ease of enforcement of cross-checkingof the inventory degree, anticipated product delivery schedules as well as order status . Issues can be recognized and dealt with speedily to lessen downtime or impacts on the production schedule. Finally, customer contentment is of priority, and each personworks towards one objective of ascertaining that their best is offered.