Impact of E-Commerce on Supply Chain Management
Presented By:- Aditya KurundkarPGDM-Operations (2015-17)SIESCOMS
Impact of E-Commerce on Supply Chain Management
IntroductionSupply chain management(SCM) is the management of
the flow of goods and servicesThe 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 SituationE-Commerce is the
transactionor facilitation of transaction in products or services
using computer networks, such as theInternet.
Introduction (Contd)
Introduction (Contd)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.
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 2011Implementing e-commerce in companies that do not
use it. This will increase its overall performance.
Basu A. and Siems T. F., The Impact Of E-Business Technologies
On Supply Chain Operations: A Macroeconomic Perspective, November
2004
Research MethodologyBoth 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
analysts insights were obtained through Web browsing and newspaper
articles, Previous research reports etc.
Data Analysis FlipkartAmazonSells more than 100000 items a
dayFirst to launch Two day deliveryBears cost of deliveryFirst to
launch delivery by 24 Hrs.In-house Logistics = eKart Incorporated
Six sigma and TQMBetter Customer Support and Technology
integrationLogistics through 3PL CompaniesProvide service to
competitors also
Logistics ManagementReverse Logistics
ManagementFlipkartAmazonAgents come to collect product or Customer
has to courier itGenCorp handles all the customer returnsMoney is
returned in Flipkart Wallet for 1 year useCustomers as well as
Vendors Money can be transferred to Customers Bank A/C Reverse
Logistics through 3rd Party Vendors.
Data Analysis Inventory ManagementFlipkartAmazonItems ordered as
per pre-Ordered sales dataIncreased inventory to satisfy
customersLow demand items ordered as order-to-order basisProximity
of Warehouse location to reduce the delivery time Fast selling
items are inventoriedCost increases drastically Just-in-Time for
products with slow growth of salesAmazon has to bear the inventory
holding cost and the depreciation of the inventory holding
valueIncreased range of productsLocation Postponement
FlipkartAmazon7 Major warehouses and 500 regional distribution
CentersReal Time quantities up gradationInward ProcessingSkuVault -
a third partyStorage ManagementMade picklist by locationOutward
ProcessingPull orders from other channelsCentralized with
SkuVaultBar coding system to every products for Manufacturers
ease
Warehouse Management
Learning'sDespite 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.
ConclusionE-Commerce has been benefited to the SCM by Lower
CostEconomy Better Customer Service Quick
ComparisonTeamworkInformation sharing, Convenience, and
ControlTechniques like TQM,JIT etc.
