Architecture for the Payment of Suppliers in the Supply Chain Through Web Services

Author:

Barrad Sherif1,Valverde Raul2

Affiliation:

1. MIT, Cambridge, USA

2. Concordia University, Montreal, Canada and CONAIC, Mexico

Abstract

As organizations embrace globalization, procurement must assess international supply markets and secure partnerships with key suppliers from all over the world. In fact, as local companies continue to expand their operations internationally, they remain bound to local financial institutions and their fees. This article proposes a model aimed at minimizing transaction fees by introducing an architecture and a prototype enabling “low-fee” transaction processing between customers and suppliers across the entire supply chain. The notion of web services is proposed as a communications method to open up options to new and international financial institutions. Vendors can now negotiate fees with financial institutions from all over the world. Both the literature review and the prototype clearly demonstrate that a more efficient and cost-effective solution and technology is on the horizon to support globalization and minimize supply chain transaction costs.

Publisher

IGI Global

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