Benefits of Supply Chain in E-Commerce

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.
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.
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.
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.
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.
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.

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