Modelling as tool for networked extended enterprises

Abstract

The aim of the paper is to study supply chain modelling as a planning and execution tool for networked extended enterprises and to show how modelling can be used to increase the transparency of the supply chain. A system theoretical approach is used to describe the change from a traditional producer-distributor-wholesaler relationship to a new extended enterprise. The phases of the change as well as the most important factors are described. As a case study, the paper concentrates on modelling the large change process in one of the largest Finnish food supply chains. The change influences the producer and the constituencies of the food producer (about 25 companies, up to 700 people) and forces them to create a new networked consortium, an extended enterprise that has to be virtually managed by the participants.