Final answer:
SCM systems are referred to as InterOrganizational systems because they support collaboration across different companies to manage the supply chain efficiently. These systems resemble intergovernmental organizations by providing a structured environment for collective management while respecting the independent operations of each participating entity. The complexity of managing such inter-organizational relationships often necessitates advanced technology and powerful computing resources.
Step-by-step explanation:
Supply Chain Management (SCM) systems are called InterOrganizational systems because they facilitate coordination and collaboration across multiple organizations. These systems allow different companies, such as suppliers, manufacturers, distributors, and retailers, to work together in managing the flow of goods and information from the origin of the product to the consumer. The notion of SCM as an InterOrganizational system is akin to intergovernmental organizations, where different states collaborate on common issues despite having their own governance structures.
Organizations are increasingly adopting flat organizational structures, which emphasize teamwork and collaborative decision-making across all levels of the hierarchy. Likewise, SCM systems aim to integrate business processes across firms to achieve a more harmonious and efficient supply chain network. By operating as InterOrganizational systems, SCM systems align multiple enterprises towards common goals, such as reducing costs and improving customer service, by leveraging shared information and optimally coordinating activities.
Within such systems, there is an inherent complexity due to the multitude of interactions between different entities, each with its own goals and strategies. This complexity can often require powerful computers to manage the data and advanced algorithms to optimize the flow of goods and information. The key to effective SCM systems is creating an environment that supports this level of integration while maintaining each organization's ability to operate effectively within the larger system.