Supply Chain Management Supported by E-Invoicing: Cluster Analysis Approach to E-Invoicing

Literature Review

Supply chain management is defined as „the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, to improve the long-term performance of the individual companies and the supply chain as a whole“ (Mentzer et al., 2011). In other words, supply chain management refers to the affiliation of firms aiming to deliver products or services to the final customer (Klueber, O’Keefe, 2013). Managing the supply chain refers to the coordination of the customers’ demands and the flow of materials from suppliers (Stevens, 1989). As such, management of the supply chain is oriented towards advances in cost management, product development, cycle times, and total quality control (Monczka et al., 2009). Furthermore, Mentzer and his co-authors (2011) highlighted that management of supply chain enhances efficiency (i.e., cost reduction) and effectiveness (i.e., customer service) in a strategic context so organizations can create competitive advantage concerning its competitors and consequently achieve higher profitability.