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value chain integration

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value chain integration

Integration of the three distinct elements to the value chain: the interface with the customer; the back room and supply chain; and the connecting of the two. Enterprise Resource Planning (ERP) was the early 1990s' attempt to optimize the supply chain. Advances in software development and networking meant that companies could connect their empires and automate and coordinate their procurement programs. Software manufacturers such as PeopleSoft, SAP, and Oracle provided the technologies. ERP applications have now moved on to Web-based solutions. Industry-specific procurement sites have been set up on the Internet and the flexibility of the Web-based approach has allowed companies to source more efficiently from a range of suppliers.
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