494
Procedure for Modeling and Improving E-SCM Processes
RUJDQL]DWLRQDOLQWHUGHSHQGHQFLHVLGHQWL¿FDWLRQ
of inter-organizational interdependencies, and
decomposition structure of inter-organizational
interdependencies.
Structured Presentation of Processes
$VLWV¿UVWFRQWULEXWLRQ,'()SURYLGHVDJRRG
overview of the input, output, control, and mecha-
nism objects within the supply chain operation
aspect (see Figure 7). Using IDEF0, a process
is presented to show what data or materials are
consumed, what data or materials are produced,
data that constrain or regulate the process, and
also the resources (people, machines or systems)
that carry out the process.
,GHQWL¿FDWLRQRIOrganizational
Interdependencies
IDEF0 technique gives not only a good overview
of input, output, control, and mechanism for
each entity of the process, but also overviews
the relationship between each entity linked by
these objects. The relationships created by these
links assist companies in identifying four types
of interdependencies, which are listed below.
Interdependencies from the Relationship
Linked by Inputs
These interdependencies occur when the same
data, materials, or any other inputs that are con-
sumed to produce an output of a process are needed
by different processes (see Figure 8).

Interdependencies from the Relationship
Linked by Input and Output Objects
Once the data or materials are consumed to
a process, they transform into outputs. These
outputs are needed by another process, which
causes the interdependencies in a range of ways,
as presented in Figure 9.
Interdependencies from the Relationship
Linked by Output and Control
Data and information that form an output of a
process can also become a constraint or control of
other processes. These transformations of outputs
into control factors result in the output-control
interdependencies between processes, as shown
in Figure 10.
Interdependencies from the Relationship
Linked by Resources
Organization entities in the supply chain network
are interconnected to exchange critical resources,
such as raw materials, labor, access to markets,
specialized skills, and knowledge (Tillquist,
2002). The resource interdependencies in the sup-
ply chain process occur when different processes
need to use or share the same resources (including
Figure 7. IDEF0 structured presentation of process
Process A1
Output
Input
Control
Resource

Figure 8. Interdependencies from the relationship
linked by inputs
Process A1
Process A2
In
p
ut
495
Procedure for Modeling and Improving E-SCM Processes
Figure 9. Interdependencies from the relationship linked by input and output
A
B
C
Process A1
Process A2
Output
In
p
ut
In
p
ut
Process A1
Process A2
Out
p
ut
Process A3
Input
In

p
ut
Process A1
Process A2
Output
In
p
ut
Figure 10. Interdependencies from the relationship
linked by output and control
Process A1
Process A2
Out
p
ut
In
p
ut
Control
Figure 12. Organizational interdependencies using IDEF0
Supplier
Oi+1
Com pany
Oi
Customer
Oi-1
Controls
Inputs
Outputs
Resources

Process A1
Process A2
Resources
Figure 11. Interdependencies from the relationship
linked by resources
496
Procedure for Modeling and Improving E-SCM Processes
information), as shown in Figure 11. Managing
these inter-organizational dependencies requires
the use of information technology (IT) to tightly
integrate partner relations by binding operational
functions, processes, strategic plans, and knowl-
edge (Tillquist, 2002).
An example of organizational process in-
terdependencies including input, input-output,
output-control, and resources interdependencies
is exhibited in Figure 12. The company (denoted
as organization Oi in Figure 11) performs the top-
level supply chain processes based on the SCOR
model divided into: plan, source, make, deliver,
and return. Each of these processes has its own
input, output, control, and mechanism involved in
the processes. The relationships linked by connec-
tion of the input, output, control, and mechanism
create the interdependencies within the entity of
the supply chain.
7KH LGHQWL¿FDWLRQ RI WKHVH RUJDQL]DWLRQDO
interdependencies helps companies to avoid and
reduce dependencies when they analyze and
design processes. Companies can also manage

those interdependencies that cannot be avoided
for better coordination in their organization.
Decomposition Structure of
Organizational Interdependencies
The third contribution of IDEF0 is based on the
decomposition structure of IDEF0. IDEF0 allows
the decomposition of process into various hierar-
chical detailed levels. This feature makes IDEF0
an ideal technique for modeling processes based
on the SCOR four-level procedure.
Figure 13 shows the decomposition of organi-
zation Oi from organization level to top level and
level 1, respectively. From this decomposition, the
GHWDLORILQWHUGHSHQGHQFLHVFDQEHPRUHVSHFL¿-
cally observed at the extended level; for example,
level 1 extends to level 2, and level 2 extends to
level 3 of the SCOR model.
,GHQWL¿FDWLRQRIInter-Organizational
Interdependencies
,GHQWL¿FDWLRQ RI LQWHURUJDQL]DWLRQDO LQWHUGH-
pendencies is the extended scope of the second
contribution of ,'()LGHQWL¿FDWLRQRIRUJDQL-
zational interdependencies). At the organizational
OHYHO,'()LGHQWL¿HVWKHUHODWLRQVKLSRILQSXW
output, control, and resources between processes
within the company. Utilizing a combination of
SCOR and IDEF0 at the inter-organizational level
helps organizations identify and manage interde-
pendencies occurring in and between processes.
This ultimately leads to coordination of the entire

supply chain. The example of identifying interde-
pendencies between organizations based on SCOR
and IDEF0 is exhibited in Figure 14.
2UJDQL]DWLRQDOLQWHUGHSHQGHQFLHVLGHQWL¿FD-
tion results in the recognition of interdependen-
cies within organizations. Inter-organizational
LQWHUGHSHQGHQFLHVLGHQWL¿FDWLRQLQDGYDQFHKHOSV
companies to recognize the links and relationships
between organizations. This eventually consti-
tutes supply chain integration and coordination.
Decomposition Structure of
Inter-Organizational Interdependencies
7KH¿IWKFRQWULEXWLRQRI,'()GHFRPSRVLWLRQRI
structure of inter-organizational interdependen-
cies, is based on the combination of process decom-
position and inter-organization interdependencies
relationship presentation. The decomposition of
process to the detailed level between organizations
allows companies to enter into the consideration
OHYHORILQWHUGHSHQGHQFLHVLGHQWL¿FDWLRQEHWZHHQ
them. This will also facilitate companies to keep
these interdependencies at a manageable level for
the goals of supply chain improvement.
Figure 15 displays the example of decompo-
sition at two organizations, a company (Oi) and
497
Procedure for Modeling and Improving E-SCM Processes
Figure 13. Decomposition of organizational business process
O
2

O
4
O
5
O
7
O
3
O
1
O
6
C1
M4 M3 M2 M1
I1
I2
I3
P5: Plan Return
A15
P4: Plan Deliver
A14
P3: Plan Make
A13
P2: Plan
Source
A12
P1: Plan Supply
Chain
A11
Return Plans

Production Requirements
Return Plan Schedule
Source Requirements
Point of Sale Data (daily)
Vendor Lead Time/ Transit Time
Delivery Plans
Stocking Requirements
Inventory Availability
Production Plans
Sourcing Plans
Customer Requirements
Order Backlog, Shipments Establish and Communicate Supply Chain Plans
Customer Replenishment Signal
Supplier Inventory Avilability
Supply Chain Plans
Capacity Requirements
Routings
Service LevelsGovernment Regulations
Customer
Budget
Systems
Staff
Supplier
Planning Decision Policies
Inventory Strategies
No d e: A1 Tit le: Sup p ly Chain Oper at io n Number:
Used at :
A
uthor: Date:
Pro ject : Rev:

Notes: 1 2 3 4 5 6 7 8 9 10 Time:
Working READER Date
Draft
Recommended
Publication
Co nt ext
Supplier
Oi+1
Company
Oi
Customer
Oi-1
Controls
Inputs
Outputs
Resources
No d e: A0 Tit le: Sup p ly Chain Oper at io n Number:
Used at :
A
uthor: Date:
Pro ject : Rev:
Notes: 1 2 3 4 5 6 7 8 9 10 Time:
Working READER Date
Draft
Recommended
Publication
Co nt ext
O
4
I3

O
7
I2
I1
O
6
O
5
C4 C5
O
1
O
3
C3
O
2
C2
M2
C1
M1M3 M4M5
I4
I5
R: Return
A5
D: Deliver
A4
M: Make
A3
S: Source
A2

P: Plan
A1
Return Product Authorization
Product Replacement Data
Return Shipment
Receipt Transaction
Customer Inquiry
Customer Order
Replenishment Signal
Validated Order
Payment
Delivered End Items
Shipments
Shipping Documents
Inventory Availability
Production Schedule
Finished Product Release
Product Location Information
Product Release
Supplier Agreement
Customer Requirements
Sourcing Plans
Production Plans
Delivery Plans
Supply Chain Plans
Return Plans
Production Requirements
Supplier Inventory Avilability
Customer Replenishment Signal
Capacity Requirements

Warranty Data
Manage Regulatory Return Policy
Routing Guide
Rated Carrier Data
Deliver Contract Terms
Inventory Level
WIP Location Rules
Equipment and Facilities Schedules and Plans
Tariffs and Duties
Supplier
Government Regulations
Customer
Systems
Budget
Staff
No d e: A0 Tit le: Sup p ly Chain Oper at io n Number:
Used at :
A
uthor: Date:
Pro ject : Rev:
Notes: 1 2 3 4 5 6 7 8 9 10 Time:
Working READER Date
Draft
Recommended
Publication
Co nt ext
SCOR: Supply
Chain Management
A0
Customer Requirements

Customer Order
Customer Inquiry
Supplier Inventory Avilability
Customer Replenishment Signal
Finished Product Release
Inventory Availability
Product Location Information
Replenishment Signal
Shipping Documents
Delivered End Items
Shipments
Government Regulations
Tariffs and Duties
Inventory Level
Customer
Supplier
Systems
Budget
Staff
Routing Guide
Deliver Contract Terms
498
Procedure for Modeling and Improving E-SCM Processes
LWV FXVWRPHU 2L 7KH ¿JXUH LOOXVWUDWHV WKDW
at the inter-organizational level, there are many
interdependencies occurring. One is caused by
WKHLQSXWRXWSXWUHODWLRQVKLS7KH¿JXUHVKRZV
that one input customer replenishment signal
of company (Oi) is derived from the output that
was created by customer (Oi-1). With decomposi-

tion to level 1, it can be found that the customer
replenishment signal is actually produced from
deliver process in customer organization, and it
goes to plan process in the company organization.
If the company further decomposes its plan pro-
cess to level 2, it can be found that this customer
replenishment signal is needed as an input to
all processes in the level including: plan supply
chain, plan source, plan make, plan deliver, and
plan return.
Figure 14. Detailed inter-organization using IDEF0 technique
SCOR
(Oi-1):customer
A3
SCOR
(Oi):company
A2
SCOR
(Oi+1):supplier
A1
Customer Requirements
Customer Replenishment Signal
Customer's Order
Customer's Inventory Availability
Customer Shipment
Customer Shipping Document
Company Requirements
Company Inventory Availability
Company Replenishment Signal
Company Shipment

Company's Order
Company Supply Chain Plan
Company Shipping Document
Supplier Inventory Availability
Supplier's Finished Product Release
Supplier Shipment
Supplier Supply Chain Plan
Supplier's Replenishment Signal
Supplier Shipping Document
Customer's Customer
Customer's Customer Inventory Level
Supplier
Customer
Customer Inventory Level
Government Regulations
Budgets
Systems
Company
Supplier's Supplier
Company Inventory Level
Routing Guide
Node: A0
Title: Supply Chain Operation Number :
Used at:
Author: Date:
Project: Rev:
Notes: 1 2 3 4 5 6 7 8 9 10 Time:
Working REA DER
Draf t
Recommended

Public ation
Context
Supplier
Oi+1
Company
Oi
Customer
Oi-1
Controls
Inputs
Outputs
Resources
499
Procedure for Modeling and Improving E-SCM Processes
Figure 15. Decomposition structure of inter-organizational interdependencies
Node: A0 Title: Supply Chain Operation Number:
Used at:
A utho r: Dat e:
P ro ject : Rev :
No tes: 1 2 3 4 5 6 7 8 9 10
Ti
Wo rk in
g
REA DER Dat e
Draft
Reco mmended
Publicatio n
Co nt ex
O
4

I3
O
I2
I1
O
O
C4 C5
O
O
C3
O
C2
M2
C1
M1M3M4M5
I4
I5
R: Return
A5
D: Deliver
A4
M: Make
A3
S: Source
A2
P: Plan
A1
Return Product Authorization
Product Replacement Data
Return Shipment

Receipt Transaction
Customer Inquiry
Customer Order
Replenishment Signal
Validated Order
Payment
Delivered End Items
Shipments
Shipping Documents
Inventory Availability
Production Schedule
Finished Product Release
Product Location Information
Product Release
Supplier Agreement
Customer Requirements
Sourcing Plans
Production Plans
Delivery Plans
Supply Chain Plans
Return Plans
Production Requirements
Supplier Inventory Avilability
Customer Replenishment Signal
Capacity Requirements
Warranty Data
Manage Regulatory Return Policy
Routing Guide
Rated Carrier Data
Deliver Contract Terms

Inventory Level
WIP Location Rules
Equipment and Facilities Schedules and Plans
Tariffs and Duties
Supplier
Government Regulations
Customer
Systems
Budget
Staff
Node: A0
Title: Supply Chain Operation Number:
Used at :
A
ut hor : Dat e:
P r oj ect : Rev:
Not es: 1 2 3 4 5 6 7 8 9 10 T i me:
Wor king READER Date
Dr af t
Recommended
Publ i cati on
Cont ext
O
4
I3
O
7
I2
I1
O

6
O
5
C4 C5
O
1
O
3
C3
O
2
C2
M2
C1
M1M3 M4M5
I4
I5
R: Return
A5
D: Deliver
A4
M: Make
A3
S: Source
A2
P: Plan
A1
Return Product Authorization
Product Replacement Data
Return Shipment

Receipt Transaction
Customer Inquiry
Customer Order
Replenishment Signal
Validated Order
Payment
Delivered End Items
Shipments
Shipping Documents
Inventory Availability
Production Schedule
Finished Product Release
Product Location Information
Product Release
Supplier Agreement
Customer Requirements
Sourcing Plans
Production Plans
Delivery Plans
Supply Chain Plans
Return Plans
Production Requirements
Supplier Inventory Avilability
Customer Replenishment Signal
Capacity Requirements
Warranty Data
Manage Regulatory Return Policy
Routing Guide
Rated Carrier Data
Deliver Contract Terms

Inventory Level
WIP Location Rules
Equipment and Facilities Schedules and Plans
Tariffs and Duties
Supplier
Government Regulations
Customer
Systems
Budget
Staff
Node: A0
Title: Supply Chain Operation Number:
Used at:
A
uthor:
Date:
Project:
R
Workin
g
READER
Draf t
Recommended
Publication
Contex t
SCOR
(Oi-1):customer
A3
SCOR
(Oi):company

A2
SCOR
(Oi+1):supplier
A1
Customer Requirements
Customer Replenishment Signal
Customer's Order
Customer's Inventory Availability
Customer Shipment
Customer Shipping Document
Company Requirements
Company Inventory Availability
Company Replenishment Signal
Company Shipment
Company's Order
Company Supply Chain Plan
Company Shipping Document
Supplier Inventory Availability
Supplier's Finished Product Release
Supplier Shipment
Supplier Supply Chain Plan
Supplier's Replenishment Signal
Supplier Shipping Document
Customer's Customer
Customer's Customer Inventory Level
Supplier
Customer
Customer Inventory Level
Government Regulations
Budgets

Systems
Company
Supplier's Supplier
Company Inventory Level
Routing Guide
O
O
4
O
O
O
O
O
C1
M4M3M2 M1
I1
I2
I3
P5: Plan Return
A15
P4: Plan Deliver
A14
P3: Plan Make
A13
P2: Plan
Source
A12
P1: Plan Supply
Chain
A11

Return Plans
Production Requirements
Return Plan Schedule
Source Requirements
Point of Sale Data (daily)
Vendor Lead Time/ Transit Time
Delivery Plans
Stocking Requirements
Inventory Availability
Production Plans
Sourcing Plans
Customer Requirements
Order Backlog, Shipments Establish and Communicate Supply Chain Plans
Customer Replenishment Signal
Supplier Inventory Avilability
Supply Chain Plans
Capacity Requirements
Routings
Service LevelsGovernment Regulations
Customer
Budget
Systems
Staff
Supplier
Planning Decision Policies
Inventory Strategies
Node: A1 Title: Supply Chain Operation Number:
Used at:
A utho r: Dat e:
P ro ject : Rev :

No tes: 1 2 3 4 5 6 7 8 9 10
Ti
Wo rk in
g
REA DER Dat e
Draft
Reco mmended
Publicatio n
Co nt ex
Inter-organisation
Level
Organizational Level:
To
p
Level
(
Level 1
)
Organizational Level:
To
p
Level
(
Level 2
)
500
Procedure for Modeling and Improving E-SCM Processes
Step 3: Benchmarking
and Identifying Best Practices
Business process benchmarking and the selec-

WLRQRIEHVWSUDFWLFHVDUHLGHQWL¿HGDVWKHWRROV
for supply chain improvement. The SCOR model
provides a list of best-in-class practices for each
process element. However, SCOR best-in-class
practices are generic lists. A best practice that has
D V L J Q L ¿F D Q W H I IH F W R Q W K H S H U IR U P D Q F H RIDF H U W D L Q 
stage and certain process in an organization may
not necessarily have the same effect on other
processes of the supply chain. Thus, in selecting
a best practice to improve the entire supply chain,
WKHHQWLUHÀRZRISURFHVVOLQNHGWRWKHSDUWQHUV
VKRXOGEHFRQVLGHUHG)RUWKLVSXUSRVHWKH¿UVW
level of the Web-based system introduced by Al-
Hakim (2003) plays a major role.
7KH¿UVWOHYHORIWKH:HEEDVHGV\VWHPDOORZV
an individual partner of an e-network to analyze,
compare, and evaluate their practices with the
practices of other partners of the e-network. The
feature allows e-network partners or e-SCM ex-
perts to simulate the effect of practices along the
supply chain and to select practices that achieve the
EHVWÀRZRIPDWHULDODORQJWKHVXSSO\FKDLQ
Step 4: Gap Determination
After selection of best practices which need to be
applied from the previous step, a gap analysis is
used to measure the current performance of each
e-network partner with those targets desired to
EHDFKLHYHGDQGWKHQWRGH¿QHWKHFKDQJHWKDWLV
needed to be made to the process. Applying the
alternative business improvement approaches

with the aim of improving supply chain in this
procedure is based on performance strategies. The
business process reengineering (BPR) approach
primarily aims to gain dramatic improvements,
while the continuous process improvement (CPI)
approach comprises improvements that are
LQGLYLGXDOO\ VPDOO FRQ¿QHG ZLWKLQ IXQFWLRQDO
boundaries. The CPI approach therefore focuses
on improving the existing system by closing small
performance gaps.
Therefore, as depicted in Figure 16, if the
performance gap is wide, substantial improve-
ment and a high degree of change is needed at a
VSHFL¿FVWDJH'UDPDWLFSURFHVVWUDQVIRUPDWLRQ
is required for breakthrough performance change.
In contrast, if the performance gap and degrees
Figure 16. Gap determination for selecting BPI approaches
Company (Oi)
Supplier (Oi+1)
Customer (Oi-1)
: GAP
Best Practices
Applying CPIApplying BPR Applying CPI
501
Procedure for Modeling and Improving E-SCM Processes
of change are small, incremental improvement is
needed to achieve small but meaningful improve-
ment in business results. Again, the Web-based
system (in Al-Hakim, 2003) allows e-SCM experts
to evaluate the action required for each e-network

partner to take.
CONCLUSION
This research attempts to develop a procedure
referred to as eSCM-I to improve supply chain
business processes, taking into consideration
the Internet and e-business communication
WHFKQRORJLHV7KHSURFHGXUHLGHQWL¿HVSURFHVV
interdependencies and managing supply chain
coordination.
The eSCM-I procedure uses the SCOR model
for purposes of process standardization. This
standardization step plays an essential role as a
coordination mechanism to manage interdepen-
dencies within a supply chain network.
IDEF0 was selected to model SCOR business
processes. The IDEF0 technique has been found
suitable for the purpose of describing SCOR
SURFHVVHVLQJHQHUDOZKHQWKHÀRZRILQIRUPD-
tion and the independency relationships are to be
considered. The IDEF0 method has the potential
t o c ont r i but e a d d it i on al a sp ec ts th at a re not re pre -
sented in the current SCOR models, resulting in
a more comprehensive representation of supply
FKDLQSURFHVVHV,'()LGHQWL¿HVWKHLQWHUGH-
pendency relationships in terms of input, output,
FRQWURODQGPHFKDQLVP7KLVLGHQWL¿FDWLRQLVYHU\
useful for effective modeling and management of
the supply chain coordination.
The SCOR model provides a list of best-in-
class practices and features for each process ele-

ment which allows individual trading partners to
analyze, compare, and apply the best practices.
However, there is no indication of how to select
and apply the various alternative best practices
at the microanalysis level. This research suggests
WKHVXLWDELOLW\RIXVLQJWKHWUDGLWLRQDOÀRZFKDUWLQJ
method for selecting best practices in the SCOR
HQYLURQPHQWXVLQJD³JDSDQDO\VLV´DSSURDFK
By identifying the gap between existing
SUDFWLFHVDQGEHVWSUDFWLFHWKH¿QDOVWHSRIWKH
eSCM-I procedure provides an introduction to
improvement approaches such as business pro-
cess reengineering (BPR) or continuous process
improvement (CPI) from the holistic viewpoint.
Ultimately, the SCOR-based eSCM-I procedure
LQWURGXFHG LQ WKLV FKDSWHU SURYLGHG ¿YH PDLQ
contributions to supply chain improvement,
including structured presentation of processes,
LGHQWL¿FDWLRQRIRUJDQL]DWLRQDOLQWHUGHSHQGHQFLHV
decomposition structure of organizational interde-
SHQGHQFLHVLGHQWL¿FDWLRQRILQWHURUJDQL]DWLRQDO
interdependencies, and decomposition structure
of inter-organizational interdependencies.
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2007 by Information Science Reference (an imprint of IGI Global).