2. How the business process of supply
chain management (SCM) makes a
good candidate for E-Commerce
Technologies
Topic:
3. Intro to Supply Chain
A supply chain is a network between a company and its suppliers to produce and
distribute a specific product to the final buyer. This network includes different
activities, people, entities, information, and resources.
How it worked ?
4. How it changed?
Prior to the network technologies, the information transmission of a supply chain
management had been largely dependent on the formal processes of
requisition, purchase order preparation and transmittal of the purchase
order at the customer’s end.
From the supplier's perspective, the order had to be entered into the system; an
invoice had to be prepared upon the completion of the order; and then had to be
posted to the customer for the payment.
5. Requisition
Network technologies provides an opportunity to interconnect the buyers and
suppliers over the network and to develop electronic standards for
procurement document formats that can be interchanged over the network.
InvoicePurchase Order
8. Advantages
The consumers, suppliers, manufactures and dealers have easy access to information for making
choice based on global reach. Also reduce the impact of Bullwhip Effect
Business organizations can access and monitor consumer choices and trends globally.
E-commerce and its technology improve the inter-firm communication and thus, drastically reduce the
time lag between the transmission and the receipt of information.
The adoption of e-commerce technologies in the purchase process substantially reduces the
transaction costs.
The technology also reduces the response times of supply chain, can be even more substantial
where the products can be delivered through the web, eg: digital products such as music, software and e-
books.
The adoption also provides an opportunity for disintermediation. No/Less Middle Man