The Influence of E-Commerce on Supply Chain Management

Abstract

The Influence of E-Commerce on Supply chain management (SCM) is a crucial topic in the last decade since the conventional supply chain activities are transformed into an Information technology oriented practices. A number of big companies and startups have been trying to dominate the e-commerce B2C sector. E-commerce industry has influenced so many variables in the supply chain; suppliers, consumer purchasing behavior, information technologies, logistics, inventory and warehousing management.

In the competitive economy where many big companies and several start-ups are trying to take hold of the market share, it is very essential to understand the overall impact of the ecommerce industry on different levels of Supply chain management. The Supply chain management distribution channel is mainly concentrated for this research and it starts from the moment the product is available with the retailer or supplier and ends with the order fulfillment of the customer.

This research focuses on how Indian e-commerce industry have impacted the field of Supply chain management and the case studies of two big giants of Indian e-commerce; Flipkart and Amazon enhances the knowledge about the impact of e-commerce sector on several supply chain activities. By interviewing the top management from both the companies, it gives a proper insight to know the impact in real time.

E-commerce

E-commerce Definition

Defined E-commerce as the process of the process of buying, selling ,or exchanging products, services, or information via computer. It as commercial activity of buying and selling over the Internet. E-commerce as an technology that provide the capability to buy and sell online – including market creation, ordering, supply chain management , and transfers through opening protocol.

How Does Ecommerce Works

Despite controversies surrounding e-commerce and the burst of the “dot com” bubble, many large companies continue to deploy e-commerce extensively in their enterprise value chain and develop internet-enable initiating to manage inventor using electronic links to suppliers, to strengthen online integration with distributors and business partners, to design and customize product and service and to attempt to serve customer more effectively. Today, e commerce has been widely used and many business have moved from the offline world in the order to serve the global Internet population.

E-commerce Classifications

E-commerce utilize information and communication technology to carry out market transaction among two or more parties usually businesses and consumers. At time one of these parties may be the government as well. In (2010) classified e-commerce by the nature transactions or the relationship among the participants into these categories:

Types of Ecommerce

Business to Business B2B

  • E-commerce model in which all the participants are business or other organizations for example dell sells its products to other companies.

Business to Consumer B2C

  • E-commerce model in which business sell to individual shoppers for example any person can enter amzon.com and buy product from that website.

Business to Business to Consumer B2BC

  • E-commerce model in which a business provide some product or service to a client business that maintain its own customer for example Intel manufacturing computer processor and sell it to HP which make computer that final consumer can buy even e-retail giant like Alibaba uses same model.

Consumer to Consumer C2C

  • E-commerce model which consumers sell directly to other consumer. Various marketplace [lay the role of mediator by enable the user to buy from other users like ebay.com and olx.in.

Supply Chain Management

Supply Chain Management is a complex process that required the coordination of many activities so that the shipment of goods and services from the suppliers right through to customer is done efficiently and effectively. Defined supply chain management as the coordination of all supply activities of an organization from its suppliers and partners to its customer. It also classified supply chain management to:

Supply Chain Management

Upstream supply chain:

  • Transaction between an organization and its suppliers and intermediaries, equivalent to buy-side e-commerce.

Downstream supply chain:

  • Transaction between an organization and its customer and intermediaries, equivalent to buy-side e-commerce.

Supply chain management was originally developed as a way to reduce costs. It focused on very specific element in the supply chain and tried to opportunities for process efficiency. Today, supply chain management is used to add value in the form of benefits to the ultimate consumer at the end of the supply chain. This required more view of the entries supply chain than had been common in the early days of supply chain management.

Infrastructure of Supply Chain Management

  • Electronic data interchange(EDI)
  • Extranets
  • Intranets
  • Corporate portals
  • Groupware and other collaboration tools
  • Identification and tracking tools

Relationship between E-Commerce and Supply chain

With the continuous development of e-commerce, enterprise supply chain has undergone enormous changes, which increasingly reflected in the supply chain management based on the e-commerce. With the wide spread of computer network, communication technology and internet, e commerce as an advance transaction method, which based on the computer network, is fashionable all over the world. Supply chain management under e-commerce environment is a combination of e-commerce and supply chain management. It focus on customers, integrates whole the process of supply chain, makes full use of external resources ,realizes rapid and sharp reaction, immensely reduce the level of stock. The development of e commerce provides good situation for the implement of supply chain management, and at the same time it also raise higher requirement, electronic supply chain management will truly become the format of enterprise supply chain management and will be known and applied by more and more enterprises. Supply chain management become an important way for enterprise to improve adaptability and competitiveness, and also is the important direction and international business management

Ecommerce and Supply Chain Management

Components of a Project Report

A project report varies according to the MBA final year project course at top colleges, depending on the consequences and the requirements of the concerned project. But broadly, a project covers the following components:

  • Title page
  • Table of contents
  • Introduction
  • Background of the project
  • Project objectives
  • Methodology
  • Results
  • Discussion and Analysis
  • Conclusion
  • Bibliography or references
  • Appendices

Project Report Pages : 80

Can be used in : Operations Management Final Year Project

Delivery Time : Within 2 hours.

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