This paper consists of three main sections. The first section discusses mar
ket turbulence and the transition from mass production to mass customizatio
n as driving forces for organizational change and optimization, which leads
to IT-support and virtual enterprises. The second section describes the ke
y-elements of supply chain management as one building block for virtual ent
erprises. Low-cost and flexible Electronic Data Interchange (EDI) is the ke
y-enabler to automate the interactions between companies and their partners
. In the third section, a complete concept and a prototype realization for
Internet EDI using XML (eXtensible Markup Language) is proposed. This appro
ach is based on Internet and XML, because the implementation of traditional
EDI (e.g. EDI-FACT, ANSI X. 12) is mostly too costly for small and medium
sized enterprises, which has to be integrated as suppliers and customers in
a supply chain. XML will be the international standard for Internet commun
ication in the near future.