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Impact of e commerce on supply chain management

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Supply chain management (SCM) is the management of the flow of goods and services
The goal of supply chain management is for member organizations to work together in close, long-term relationships to increase the competitive advantage of the supply Chain as a whole by making Win-Win Situation
E-Commerce is the transaction or facilitation of transaction in products or services using computer networks, such as the Internet.
The supply chain management based on E-commerce can not only make every enterprise in the supply chain to reduce production cost, shorten demand response time and market change time, but also can provide overall service for customers, let customers acquire the best quality of products and services, and at the same time realize the largest value-added.
It can also provide whole e-commerce transaction service, realize global market and enterprise resource sharing. Supply and deliver order goods to customers in time, reduce operating and purchase cost, improve operating performance.

Published in: Business

Impact of e commerce on supply chain management

  1. 1. Presented By:- Aditya Kurundkar PGDM-Operations (2015-17) SIESCOMS Impact of E-Commerce on Supply Chain Management
  2. 2. Introduction  Supply chain management (SCM) is the management of the flow of goods and services  The goal of supply chain management is for member organizations to work together in close, long-term relationships to increase the competitive advantage of the supply Chain as a whole by making Win-Win Situation  E-Commerce is the transaction or facilitation of transaction in products or services using computer networks, such as the Internet.
  3. 3. Introduction (Cont’d)
  4. 4. Introduction (Cont’d)  The supply chain management based on E- commerce can not only make every enterprise in the supply chain to reduce production cost, shorten demand response time and market change time, but also can provide overall service for customers, let customers acquire the best quality of products and services, and at the same time realize the largest value-added.  It can also provide whole e-commerce transaction service, realize global market and enterprise resource sharing. Supply and deliver order goods to customers in time, reduce operating and purchase cost, improve operating performance.
  5. 5. Literature Review The researcher tells the impact of E-Commerce on a very broad perspective in the sense by effective implementation can help firms reduce costs, increase revenues, boost efficiencies, and expand market opportunities. these improvements have resulted in lowering inventory levels, reducing logistical costs, and streamlining procurement processes.  Yasir Saad Al-baya ti, The Impact of E-Commerce on Supply Chain Management (SCM) and E-Marketplace Usage, June 2011 Implementing e-commerce in companies that do not use  Basu A. and Siems T. F., The Impact Of E-Business Technologies On Supply Chain Operations: A Macroeconomic Perspective, November 2004
  6. 6. Research Methodology  Both Qualitative and Quantitative approach was conducted to describe the impact of E- Commerce on supply chain management  The study includes only secondary data. Data and information pertaining to e-commerce and SCM on annual reports, journals, and analyst’s insights were obtained through Web browsing and newspaper articles, Previous research reports etc.
  7. 7. Data Analysis Flipkart Amazon Sells more than 100000 items a day First to launch Two day delivery Bears cost of delivery First to launch delivery by 24 Hrs. In-house Logistics = eKart Incorporated Six sigma and TQM Better Customer Support and Technology integration Logistics through 3PL Companies Provide service to competitors also Logistics Management Reverse Logistics Management Flipkart Amazon Agents come to collect product or Customer has to courier it GenCorp handles all the customer returns Money is returned in Flipkart Wallet for 1 year use Customers as well as Vendors Money can be transferred to Customers Bank A/C Reverse Logistics through 3rd Party Vendors.
  8. 8. Data AnalysisInventory Management Flipkart Amazon Items ordered as per pre-Ordered sales data Increased inventory to satisfy customers Low demand items ordered as order-to-order basis Proximity of Warehouse location to reduce the delivery time Fast selling items are inventoried Cost increases drastically Just-in-Time for products with slow growth of sales Amazon has to bear the inventory holding cost and the depreciation of the inventory holding value Increased range of products Location Postponement Flipkart Amazon 7 Major warehouses and 500 regional distribution Centers Real Time quantities up gradation Inward Processing SkuVault - a third party Storage Management Made picklist by location Outward Processing Pull orders from other channels Centralized with SkuVault Bar coding system to every products for Manufacturers ease Warehouse Management
  9. 9. Learning's  Despite of having second largest population in the world, India is having a big potential for internet penetration. Currently only 30% population uses internet in India. So there is still 70% of untapped market which is yet to discovered.  Usefulness of supply chain and its importance in collaborating the member organizations.  Centralized Warehouse management process  Importance of Just-In-Time method to reduce the inventory cost and inventory holding cost  Role played by 3rd Party in logistics management.  The Operational effectiveness and the techniques such as Total Quality Management, Just-in-time.
  10. 10. Conclusion  E-Commerce has been benefited to the SCM by  Lower Cost  Economy  Better Customer Service  Quick Comparison  Teamwork  Information sharing, Convenience, and Control  Techniques like TQM,JIT etc.

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