Extended ERP: Dynamic Strategic Supply Network Development

Based on changing market conditions and pressure on cost and productiv- ity, companies in different industries have started to concentrate on their core com- petencies and to decrease vertical range of manufacture. This resulted in an increas- ing dependency between the producing companies and their suppliers, and therefore also between the producing companies and their supply networks. Supplier Rela- tionship Management (SRM) offers methods and tools to identify, evaluate, select and qualify suppliers. In order to support the paradigm switch from a supplier ori- ented relationship view to a supply network dominated view, these methods and tools need to be extended into Supply Network Management (SNM). This paper is based on preparatory work done in the area of strategic supply network development (SSND) and introduces business functions for the identification, evaluation and se- lection of complete supply networks. Additionally, a component model, a system framework and a prototype for Strategic Supply Network Modeling (SSNM) are intro- duced in order to extend existing ERP and respectively SRM systems with the func- tionality mentioned above.