The extended enterprise is the concept of a company’s management team looking beyond the traditional view of the organization as defined by its physical walls. In today’s business environment, companies are often part of a global supply chain, with different parts of the organization located in different parts of the world. The extended enterprise view takes into account all of the different moving parts that make up a company’s supply chain, and strives to optimize efficiency and communication between all of them.
An important component of the extended enterprise is effective management of supplier relationships. In order to maintain a competitive edge, companies must have visibility into their entire supply chain and be able to quickly adapt to changes. They also need to be able to work collaboratively with suppliers to improve quality and reduce costs.
The extended enterprise view is becoming increasingly important as companies strive to remain agile and responsive in a rapidly changing business environment. It is also an important factor in management’s efforts to create a sustainable competitive advantage. By looking beyond the traditional view of the organization, management teams can identify new opportunities for cost savings and efficiency gains.