Skip to main content

Benefits of Supply Chain in E-Commerce

  1. Order Taking: It can be done over the internet, EDI or an extranet, and it may be fully automated. For example, in B2B, orders are generated and transmitted automatically to suppliers when inventory levels fall below certain levels. The result is a fast, inexpensive, and more accurate (no need to re-key data) order-taking process. In B2C, web-based ordering using electronic forms expedites the process, makes it more accurate and reduces processing costs. 
  2. Order Fulfillment: It can become instant if the products can be digitized (e.g., software). In other cases, e-commerce (EC) order taking interfaces with the company's back-office systems, including logistics. Such an interface, or even integration, shortens cycle, time, and eliminates errors. 
  3. Electronic Payments: It can expedite both the order fulfillment cycle, and payment delivery period. Payment processing can be significantly less expensive and fraud can be better controlled.
  4. Managing Risk: It is to avoid supply-chain breakdown, it can be done in several ways. Inventories are effective but can be expensive. Also, in certain cases the risk increases because products may become obsolete.
  5. Inventories can be Minimised: Inventories can be minimized by introducing a build-to-order (on demand) manufacturing process as well as by providing fast and accurate information to suppliers. By allowing business partners to electronically track and monitor orders and production activities; inventory management can be improved and inventory levels and the expense of inventory management can be minimized.
  6. Collaborative Commerce: Collaborative commerce among members of the supply chain can be done in many areas, ranging from product design to demand forecasting. The results are shorter cycle times, minimal delays and work interruptions, lower inventories, and lower administrative costs.

Some more related topics:
Home (E-Commerce)


Labels:

Comments

Post a Comment

Popular Post

What is COVID-19 ?

COVID-19 is a disease caused due to the infection of novel coronavirus. The first case of COVID-19 disease was founded at Wuhan, China in December 2019. It also named as severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). COVID-19 is the most widely spread disease ever in the world. In most cases it infects the respiratory system that causes fever, dry cough, and shortness of breath. Previous : What is the difference between coronavirus and COVID-19 ?
Post a Comment
Read more

EDI and Business

Organisation that Uses EDI     1) Wal-Mart : An EDI link between Wal-Mart and one of its suppliers, Seminole Manufacturing Co. cut the delivery time of Seminole slacks by 50%. This resulted in a 31% sales increase of these slacks in the first 9 months after the link was established.   2) General Motors : General Motors have integrated EDI Electronic funds transfer at 30% of its assembly plants. Shipping receipts are sent electronically from the GM plant to an Electronic Data System (EDS is subsidiary of GM) computer center where they are matched against electronic invoices and purchase orders.   Suppliers group the shipping receipts, and one payment is made. This single payment may represent dozens of different shipments to different plants. These payments are also performed electronically via Electronic Funds Transfers.   3) J C Penney : Sales of Stafford suits jumped 59% after JC Penney linked up with their supplier Lanier Clothes. EDI allowed Penney to quickl...
Post a Comment
Read more

EDI Maturity Model

The development of EDI within an organisation or a trade sector goes through a number of stages. Saxena and Wagenaar suggest a three stage EDI maturity model as a part of a three-way analysis of EDI development in organisations, trade sectors and nations.  Figure 2.20 shows the concept of EDI maturity with a six-stage maturity model, and links it to the opportunities for competitive advantage. The stages of EDI development as represented in the model are:  Stage 1:Discovery : The first stage in EDI development is the discovery stage. Discovery can be by an organisation choosing to adopt EDI to gain competitive advantage or to solve an administrative problem.  Stage 2: Introductory : This stage requires investment hardware and software but, atleast significant, will be the time commitment in establishing the parameters of the electronic trading relationship. This stage, on its own, does not result in any cost saving or efficiency gain. there are direct costs in computer ...
Post a Comment
Read more