This document discusses supply chain management in e-commerce. It describes the key components of an e-commerce supply chain as demand planning, supply planning, and demand fulfillment. An effective e-commerce supply chain can increase revenues, decrease costs, improve customer satisfaction, and reduce inventory levels across the supply chain. Supply chain management involves coordinating all supply activities from suppliers to customers and includes upstream and downstream supply chain transactions.

1. SUPPLY CHAIN MANAGEMENT
IN E-COMMERCE
OSM CLUB
IIM KASHIPUR

2. Supply chain management
plan
source
make
deliver
return

3. The E-Commerce Supply Chain
 Supply chain management is a key value chain
composed of:

Demand planning

Supply planning

Demand fulfillment

4. Supply Chain Management
4

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

8. A typical supply chain
(an example from the B2B company)

9. Push and pull approaches to
supply chain management

10. Push and pull approaches to
supply chain management

11. Two alternative models of the
value chain.
(a) traditional value chain model, (b) revised value chain model

12. A typical IS infrastructure for
supply chain management
A typical IS infrastructure for supply chain management

13. Alternative strategies for
modification of the e-business supply chain
Alternative strategies for modification of the e-business supply chain

14. E Commerce-SCM Models

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

18. http://www.youtube.com/watch?v=zknLfU7GJIw

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
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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

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
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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

21. Reverse Logistics

22. Reverse Logistics

23. THANK YOU
http://www.youtube.com/watch?v=h7tHK
wYEZIk