5. The E-Commerce Supply Chain
E-commerce supply chain management allows
businesses an opportunity to achieve:
Increased revenues and decreased costs
Improved customer satisfaction
Inventory reduction across the supply chain
6. SCM – some definitions
Supply chain management (SCM) The
coordination of all supply activities of an organization
from its suppliers and partners to its customers.
Upstream supply chain Transactions between an
organization and its suppliers and intermediaries,
equivalent to buy-side e-commerce.
Downstream supply chain Transactions between
an organization and its customers and intermediaries,
equivalent to sell-side e-commerce.
7. Members of the supply chain
(a) simplified view (b) including intermediaries
15. B2B E-Commerce
Business to Business (B2B) e-commerce – when a business
sells products and services to customers who are primarily other
businesses:
Where all the e-commerce money is
Basically, it’s about businesses doing business with other businesses
Supply chain management is a big part of B2B e-commerce
B2B take full advantage of e-commerce by creating and using e-marketplaces
E-Marketplaces are virtual marketplaces where companies buy and sell products to each
other, share information, and perform other important activities
This is one of the fastest growing trends in the B2B e-commerce model
Example: A firm selling car components to a car manufacturer
16. B2C E-Commerce
Business to Consumer (B2C) e-commerce – when a business
sells products and services to customers who are primarily
individuals.
B2C is the glitzy e-commerce like iTunes, Amazon, eBay, etc
Focused on consumer items – books, music, computers, etc
Consumers interact very differently with the web than in the B2B ecommerce model
Consumers surf around the web evaluating products and services until they
eventually choose one site from which to make a purchase
Businesses prefer to enter into long term partnerships with other partnerships
in the B2B model, but consumers are more fickle and purchase the same types
of products from many different sites
The B2C model is a very cut-throat environment with many different
competitors trying to drive down costs
19. C2B E-Commerce
Consumer to Business (C2B) e-commerce – when an
individual sells products and services to a business
True economic inversion of the B2C model
In B2C, demand is driven by the consumer and supply driven by the business
In C2B, this is reversed – with business driving demand, and consumers driving supply
Fotolia is a good example (www.fotolia.com)
There you can post photos and videos and businesses will pay you a royalty to use
them (if they like what you offer)
You can also advertise businesses on your personal Web site (called an affiliate
program) and receive monies for visitors who jump from your site to the business’
Web sites
Amazon pay royalties to individuals who advertise amazon on their site.
Also opportunities here for good blogging web-sites
20. C2C E-Commerce
Consumer to Consumer (C2C) e-commerce – when an
individual sells products and services to another individual.
You selling to another person (or the reverse)
Usually occurs through an intermediary such as eBay
eBay is a hybrid of B2C and C2C
It facilitates consumers (B2C) to sell products to each other (C2C)
Many C2C web sites don’t really support any sort of e-commerce (i.e.
money changing hands for products and services)
Rather the facilitate people coming together with common interests
www.Mp3fusion.net – people who share music, etc
PlanEvery company needs a strategy on how to manage the resources in order to achieve their customers demand for their products and services. The supply chain management is developing a set of metric to monitor the supply chain so that it can deliver high qualities and values to customers.SourceTo create their products, companies need to be very careful when choosing suppliers to deliver their goods and services needed. The managers need to develop a set pricing and delivery system in the supply chain.They can also put processes for managing their goods and goods inventory, for example; receiving shipments.MakeIn manufacturing the supply chain manager should always schedule the activities that are needed for the production, packaging, testing and preparation for delivery. The most metric-intensive portion of the supply chain, production output and measure levels.DeliverThis part is mainly referred to as logistics by the supply chain management. In this case companies coordinate receipts of orders, pick carriers to get products to customers and develop a network of warehouses.ReturnIn many companies this is usually where the problem is – in the supply chain. The planners should create a flexible and responsible network for receiving a flaw and excess products sent back to them (from customers).