E-business is the execution of business transactions via the internet.One of the primary benefits of e-business is its ability to cut costs. This technology eliminates the need to have a physical presence.e-business strategies like social media and online advertising involve lower costs than traditional marketing which allows startups and small companies to reach their target audience.

1. The Role of E-Business in
supply chain management
BY
JOHNS JOSEPH
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2. The Role of E-Business
E-business is the execution of business transactions via the
internet:
• One of the primary benefits of e-business is its ability to cut
costs. This technology eliminates the need to have a
physical presence
• e-business strategies like social media and online
advertising involve lower costs than traditional marketing
which allows startups and small companies to reach their
target audience
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3. CATEGORIES
Three types
• BETWEEN COMPANY AND A CUSTOMER (B2C)
• BETWEEN TWO COMPANIES (B2B)
• CONSUMER-TO-CONSUMER (C2C)
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4. BUSINESS-TO-CONSUMER (B2C)
• The most common form of e-commerce, B2C e-commerce deals with
electronic business relationships between businesses and consumers.
• Many people enjoy this avenue of e-commerce because it allows them to
shop around for the best prices, read customer reviews and often find
different products that they wouldn’t otherwise be exposed to in the retail
world.
• This e-commerce category also enables businesses to develop a more
personalized relationship with their customers.
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5. BUSINESS-TO-BUSINESS (B2B)
• B2B e-commerce refers to all electronic transactions of goods and sales that
are conducted between two companies.
• This type of e-commerce typically explains the relationship between the
producers of a product and the wholesalers who advertise the product for
purchase to consumers.
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6. CONSUMER-TO-CONSUMER (C2C)
• This level of e-commerce encompasses all electronic transactions that take
place between consumers.
• Generally, these transactions are provided by online platforms (such as PayPal),
but often are conducted through the use of social media networks (Facebook
marketplace) and websites
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7. FUNCTIONS
• Provides information across the supply chain
• Negotiation of prices
• Allows customers to place orders
• Allows customers to track orders
• Filling and delivering orders
• Receive payment from customers
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8. Functions Involved
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9. The E-business Framework
• Impact on responsiveness. (which primarily
affects a company’s ability to grow and
protect revenue).
• Impact on efficacy. (which primarily affects
a company’s cost).
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10. Impact of E-Business on
Responsiveness
Enables a company to gain new revenues or to protect
existing revenues.
• Direct Sales to Customers.
• 24 Hour access from any location.
• Wider Product portfolio and Information Aggregation.
• Personalization/Customization.
• Faster time to Market.
• Flexible pricing, product portfolio, and promotions
• Price and Service discrimination
• Efficient funds Transfer
• Lower stock out levels.
• Convenience/automated processes
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11. Cost Impact
• Reduces product handling with a shorter supply
chain
• Decreases inventory cost
• Decreases delivery cost and time
• Reduces facility and processing costs
• Improve SC co-ordination
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13. The Role of E-Commerce in Supply Chains
The role of e-commerce in SCM is two-fold
• First, retailers use e-commerce to sell directly to clients, either on their own
website or through a service like Amazon or e-Bay.
• Secondly, retailers can buy products and raw materials using e-commerce
systems from manufacturers, wholesalers and distributors.
• suppliers can choose to sell directly through their own websites or through a
service like Alibaba or AliExpress.
• retailers who use e-commerce both to purchase and to sell products can
eliminate their own supply chain management entirely through the use
of drop-shipping.
• When a client goes to the retail website and orders an item, the retailer
automatically orders that item from the manufacturer or distributor, who
ships it directly to the customer.
• The only role the retailer has in this transaction is accepting money from the
customer and, in turn, paying the supplier.
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14. The Role of E-Commerce Reviews in SCM
• Two factors that influence consumers contemplating an online purchase are price
comparisons and reviews.
• These two, more often than not, are linked together in price comparison search
engines, which are usually the first thing shoppers see when they begin their
search.
• Another reality in e-commerce is that Amazon ranks its vendors in search results
based on the same factors consumers expect: quickly and efficiently delivering
good products.
• Those who fail to live up to this expectation can expect to have their accounts
suspended.
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15. SETTING UP E-BUSINESS
• Integrate the internet with existing physical network
• Devise shipment strategies that reflect costs
• Optimize e-business logistics to handle packages not
pallets
• Design e-business supply chain to handle returns
efficiently
• Keep customers informed throughout the order
fulfillment cycle
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16. ADVANTAGES
• Saves money
• Saves time
• Easily access of information
• Easier transaction
• Updating of new products
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