Trend In Supply Chain Management

Question: Discuss about the Trend In Supply Chain Management. Answer: Introduction: E-Commerce: A Trend In Supply Chain Management Supply chain management is the movement and organization of resources, money and information to the customers at a minim3um price possible (Rouse, 2010). Electronic commerce has the greatest impact on the supply chain management. E-commerce is the process of purchasing and selling of products and services through internet (Cole, 2016). E-commerce guarantees to increase the speed, efficiency, superiority and price of a business transaction and manages a supply chain. Many of the companies have applied and organize e-commerce in their business value chains on a large scale and has cultivated enterprises which uses internet to build inventories to the sellers, to toughen incorporation with the wholesalers and business associates online, to design and modify materials and amenities, to attend consumers more efficiently (Zhu Kraemer, 2002). In recent years many business have shifted online from offline to assist the whole world population (Rachjaibun, 2007). Supply chain management with e-commerce gives benefits to the customers. Impact Of E-Commerce On Supply Chain Management Designing of materials and services: E-commerce have increased the superiority of design and reduced the time required to make such a design and has made interaction possible between all people related with the company. Dell, a computer company has become one of the leader in market of computers. It was the first company which provide PC online for sale by applying e-commerce and thus increased its sales and thus new models were being invented (Harsono, 2014). Direct and indirect attainment- e-commerce has effect on both direct and indirect obtaining of products and services. Mixing e-commerce with the MRP of the product increases larger savings. A dell computer can reach the customer within 36 hours of order. Making: e-commerce have an effect on the companys making process and so the company becomes more elastic and alert in whatever they design and also on the limit of mass production which the system can supply. Plan regarding the demand and supply- It is very problematic to handle planning when many variables are used. So e-commerce can be helpful to increase the success of planning. It also permits larger communication between systems regarding planning in areas involving team work. Fulfilment and e-fulfilment: orders can be delivered through e-commerce and thus fulfilling the promise done by the company. At any time the consumer can trace and track the status of his product. The person name and identity, the courier service who will deliver their product. This has completely modernize the way the products are reached to the customers. It has also revolutionized the correlation between consumers, distributors, wholesalers. W.W.Grainger is a distributor of machine parts. It is widespread for its catalogue which is quite thick. In 1995 it developed its website and online orders were taken 24 hours and also consumer selection if products is made easy which decreases the cost as well as time. Also the customers can be informed regarding their orders (Mieghem, Chopra, 2000) Transport- E-commerce permits big or small transport companies to interchange courier papers through internet. E-commerce helps the courier services like DTDC, shipment to make papers management more easy without the use of more money and the time required by the old systems that are required for delivery. Through the use of latest trends like e-commerce in supply chain management the price can be reduced in transportation, there are less chances of error, simplify the complex processes involved in business, speed up the processes, and increase services to customers according to their satisfaction. For example company like ocean carriers interchange bills of loading of cargo, freight bill (containing information regarding the weight, point of origin, name of shipment, charges), parcel status instruction with their business partners to make transportation effective and precise (Maria, 2011) Service and support: This is other sphere in which e-commerce has made changes and still there is scope of changes. The process by which the maintenance and return or exchange of products is made has also become easy (Harsono, 2014). For example in companies like Flipkart, Jabong, Amazon return and exchange is possible of an item already purchased. We have to give the details of the item and courier man is ready to receive the parcel back. Economic- In E-commerce rent is not given of the space used for storage, the set up and the materials are not required (Al-bayati, 2011). Increased margin: Applying E-commerce to the processes symbolizes greater margins. For example in olden times the price of taking out a ticket of a flight was 8$ but now using e-commerce the cost of processing the similar ticket is 1$ (Al-bayati, 2011). Healthier Customer Service: E-commerce gives healthier and faster consumer service. Through the use of e-commerce or internet the customers benefit can be increased and the feel more contended (Al-bayati, 2011). For example In previous times the order was given on phone and there was a possibility of error and also the consumer has to hold the phone, or the line came out to be busy because of inflow of so many calls or has to wait for the worker to take out your account information but now these are not the cases. The entry of the name of the consumer take out all the details of the person in one second and also the order are also given online. Fast Comparison: E-commerce is in a way beneficial for the customers as the client can check prices of the products at different sites and thus can purchase the product at less price and can see the fair deals available. For example a consumer can check the price of a mobile phone on various online sites and can purchase on that site where the price is less. Productivity profits: Searching on the internet implies superior productivity profits. For example in an American company IBM (International Business Machine) on an average 20 people search on the site through each and every corner, for it IBM could protect its 750 million dollars by making consumers helping themselves and searching for the replies of technical problems on the site by internet. Working in cooperation: E-commerce is very helpful for the people to work together as a team. Through e-mail workers can interchange information and arrive at some particular solutions. It will change and make it better in a way by which the company relates itself with the business associates, distributors, wholesalers and consumers. Information markets: E-commerce can form information markets. Very minute firms can work inside larger firms in exchange of money to help them to grow and cultivate new thoughts. Education and training: It is very important for its workers and also for the company to grow. The new technology and new updates in the fields required can be given to the workers online and also they can check themselves and find new techniques (The ecommerce impacts, 2015). Conclusion So we can conclude that E-commerce is very important for business to grow and flourish with so much of competition. Incorporating E-commerce in the supply chain management simplifies many processes to give good and superior quality products to the consumers. The main constituents of E Commerce-permitted Supply Chain Management consist of 6 areas: (i) planning, (ii) virtual enterprise, (iii) e-commerce, (iv) basic physical structures (v) management and (vi) execution. The fundamentals of a well-established supply chain management having e-commerce lies on the basis of effective planning and materials from the development originates. In the supply chain management e-Commerce is single-minded by the higher officials in the plan. The senior officials have to realize its importance and also without its sustenance it becomes problematic to give information on the best verdicts of supply chain. List of References Rouse, M. (2010). Supply Chain Management. Tech Target. Cole, B. (2016). E-commerce (Electronic commerce or EC). Tech Target. Chopra, S. Mieghem, V. (2000). WHICH E-BUSINESS IS RIGHT FOR YOUR SUPPLY CHAIN?. Supply Chain Management Review. Harsono, A. (2014). THE IMPACT OF E-COMMERCE IN SUPPLY CHAIN MANAGEMENT AT DELL INC. 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