E-business and Information Integration in Supply Chain Management

The central theme of supply chain management is integration. General system theory provides the theoretical framework of integration, whereas information integration is the foundation of broader supply chain integration. E-business opens up communication and enlarges networking opportunities and thus tremendously affects information integration. By analyzing one recent trend of e-business, the e-hub, we explore the mechanism of information integration as well as managerial and technical limitations. Although there are many challenges, e-hubs create value by aggregating buyers and sellers, creating marketplace liquidity, and reducing transaction cost. E-hubs also provide exchange information on transportation and logistics. Therefore, e-hubs could be a crucial solution to supply chain management