The extended enterprise - a concept of co-operation

This paper describes the idea of the extended enterprise, in which manufacturing companies co-operate closely to maximize the benefits of the business they are all involved in. The concept of the extended enterprise is explored, and its effect on purchasing relationships is considered. Production planning considerations are dealt with and the extended enterprise is considered from the viewpoint of the supplier. Modelling and analysis of the extended enterprise in connection with process improvement is reviewed, and some questions that arise from the co-operative approach are presented. The paper concludes that the concept stems from supply chain management and the interest in integration across boundaries. The extended enterprise presents many challenges, but may be a new source of competitive advantage.