Typically the term ÒSupply chainÓ refers to physical inventory management. However, in the virtual world, supply chain efficacy pertains to companies that have physical inventory as well as companies that only store, alter, and supply information. The components of a virtual supply chain include a network, applications, processes, and business intelligence. Creating an eSupply Chain involves designing and implementing mature processes and IT systems. MIT and SAP research found that companies that accomplished both critical tasks experienced 75%% higher profits in their product/service spaces. Key processes include forecasting information supply and demand, capacity planning, strategic and tactical implications of IT requirements, redundancy, BI requirements, the speed of industry change, process optimization, cost analysis, project management, information sharing, service delivery, and service support.
