Impact of E-Commerce technologies on Supply Chain Management

Question: 1.Discuss the Impact of E-Commerce technologies on Supply Chain Management on: 1.1.Impact on procurement1.2.Impact on production, planning and control.1.3.Impact on distribution. Answer: Introduction E-commerce has been one of the most important modes of business in the current global trade. The business organisations are getting competitive advantages in the competitive world and e-commerce happens to be the most affordable medium of making a business transaction. The business transaction is done through the internet and it takes very less time to do the transaction. The role of e-commerce in the supply chain management has been useful (idea.gov.uk, 2017). The e-commerce has reduced the time and cost and is able to do the business process successfully. The assignment studies the role of e-commerce in the procurement, production, planning and control activities of the organisation. The assignment also discusses how the e-commerce has been the quickest mode of distribution and how it impacted the business system of the company. The assignment will study the success story off Dell that took advantage of email order and successfully won the competitive advantage by supplying the cus tomers various configurations through online mode. This was possible due to integrated supply management chain applied by the company. Defining supply chain management Supply chain management refers to the planning management of all the activities that involve in sourcing, procurement, conversion the management of the logistics. It is the systematic, strategic coordination of the business functions of the traditional approach the tactics across of these business functions within the supply chain for the improvement of the performance of the company the supply chain as a whole (UCSF, 2017). It is the systematic view of the connectivity in the chains in order to create satisfaction of the customers at the time of the delivery of the products. The supply chain management has been important for the global business and for the improvement of the operations of the business. It enhances the competitions and helps the organisation for the inventory management. This contributes to the proliferation of e-commerce. Impact of e-commerce technologies on the supply chain management E-commerce has offered all the stakeholders of the business to make an easy access to the information to make a choice based on the global reach. The customers, suppliers, manufactures dealers can get the information and the choices made by them will be accessed and monitored by the business organisation across the globe. The technology of e-commerce has brought improvement in the communication between customers- firm and it has reduced the time required to get the information. The purchase process has been tremendously impacted and the transaction cost has been reduced. The response time of the supply chain is reduced by the technology and the communication and information flow become very fast across the chain. The e-commerce has been helpful for the disintermediation and has reduced the impact of bullwhip effect (Heng, 2015). The e-commerce has been very important for procurement, production, planning control of the business of the organisation. The e-commerce has also a greater impact on the supply chain management and on the distribution. 1.1.Impact on procurement The process of the procurement of a supply chain management is all about the managing an appropriate set of suppliers those who can support the needs of the process of the production through fats and flow of raw materials. The present global world offers a scope to the business organisation to find out the suppliers or the raw materials at the optimal time frame with an appropriate cost. The process of the procurement establishes collaborative relationships with the suppliers. This will contributes for the procurement of the required amount the quality materials in the designated time (Heaton, 2017). This has been possible for the e-commerce. The e-commerce has reduced the cycle time the production cost. The network connectivity has developed the process of the procurement. The traditionally based activities like selecting the item, requisition of the purchase on the paper, delivery of materials, invoice the payment have been replaced. The deployment of the Electronic Data Interc hange system enables the suppliers and procuring organisation to have rapid communication. The electronic medium will offer Business to Business model for the e-commerce. This helps to gather needed goods directly on the exchange. The e-commerce has improved Business to Business process and offers direct access to know the price, quality, quantity, availability information that is important for the business communication (Krishnamurthy, 2007). 1.2.Impact of e-commerce on production, planning, and control The manufacturing process of the company depends on the need of the customers. The company produces to meet the demand of the end-users. There are different activities conducted by the company for providing products services to the consumers. These activities are from the forecasting, procurement, inventory information management, assurance of quality, scheduling, producing, distribution, delivery and customer service (Anon., 2017). The e-commerce facilitates the movements of the goods by making buffer stocking of the items in the warehouse near the location of the consumers so that they can make immediate delivery. The supply chain movement helps in three important ways. The goods are moved towards the direction of the consumers. The e-commerce helps moves information from consumers to suppliers and from suppliers to consumers. The movements of the finances are made from the consumers to the suppliers. (Derek, 2017) The Business to Business commerce the technologies are used to address the demand sensing issues related to the responses. The manufacturing needs are properly managed. The e-commerce has helped to meet the following objectives. It enhances partner collaboration, minimizes the cost, and helps for sensing the supply and it is used for coordination. 1.3.Impact on the distribution The importance of the distribution network is huge in an organisation. The power of the distribution network of an organisation helps it to reach the customers across the globe. The products are easily delivered to the customers easily. The distribution network helps the organisation to compete with other organisations, to optimize the levels of the inventory and to maintain the warehouses successfully in order to meet the demand of the end-users of the products (entrepreneur.com, 2017). The e-commerce plays a role of the intermediary and collects the information as per the preference of the consumers, on the trends of the demand and sensing the demand. Thus the e-commerce helps to disseminate available information on price, quality, and functions of the products to the customers (Khadar, 2016). Thus the e-commerce supports then logistic systems, helps the movement of the physical goods from the producers to the end-users and shares the risks related to the management of the inventor y. The e-commerce has been very useful for the exploitation of the economies of scale in the process of the transportation distribution of the products. The e-commerce has helped the consumers by providing good services. Thus it establishes a relationship between the manufacturers and the distributors Thus e-commerce creates an environment where digital goods are created and then it is reached to the consumers at the end. The e-commerce platform has helped to promote distribution system with high level of standardization, brand image and assurance of quality and valuation becomes low in complexity. Thus the e-commerce has helped the end users to get the products directly from the manufacturers (Chowdhury, 2008). Impact of e-commerce of Dell and its impact on production, planning, and control and on procurement and on distribution The demand trends help Dell Company to organise its manufacturing to produce the products that are customized. For meeting the demand of the customers the company used a strategy of supplying high-quality PC components subassemblies. The company used a supply network called virtual integration. The company had supply partners who are provided demand trends. The company focuses on launching new products. The supply partners were integrated. The planning of the operations could help to integrate with partners of the supply to make a plan for the operations so that the cost of the inventories will be reduced. This has allowed Dell to operate low-inventory or Just in time operations in inventory (americanexpress.com, 2011). The customers of the dell are now able to make a customized order and that is stored in the database. The company gets benefits sourcing the data for quick shipment from the nearest manufacturing unit. The company has interconnected all the processes and the systems (Geva, 2013). The facility server of the company creates an image as per the order of the customers. It takes two hours to sequence the manufacturing schedule system The Build to Order process requests for the needed materials and it is delivered by the suppliers and it is updated appropriately. The company is not requiring warehouse and the inventory operations become very less. This has made the Dell Company maintain delivery point at the distances that can be delivered in 15 minutes. The e-commerce has contributed to communicating between the manufacture to the customers directly. Conclusion E-commerce has contributed to enhancing the strength of the supply management system. The supply management system has been very effective. The e-commerce has provided scope for the consumers, suppliers, producers and dealers to access the internet and get the information easily and quickly. The consumer choices are given priority and it reduces time, cost and offers business to business communication Bibliography americanexpress.com, 2011. 19 Ways To Get Your Product In Front Of Retailers | OPEN Forum. [Online] Available at: https://www.americanexpress.com/.../19-ways-to-get-your-product-in-front-of-retailer. [Accessed 25 04 2017]. Anon., 2017. Interactive Marketing Communications. [Online] Available at: https://managementstudyguide.com/interactive-marketing-communications.htm [Accessed 25 04 2017]. Chowdhury, H. K., 2008. Consumers attitude toward mobile advertising in an emerging market: An empirical study. International Journnal of Mobile Marketing, pp. 33-42. Derek, 2017. 12 Ways to Increase Online Sales. [Online] Available at: https://www.entrepreneur.com/article/79002 [Accessed 25 04 2017]. entrepreneur.com, 2017. 12 ways to increase online sales. [Online] Available at: https://www.entrepreneur.com/article/79002 [Accessed 25 04 2017]. Geva, B., 2013. The Law of Electronic Funds Transfers. Lexis Nexis. Heaton, J., 2017. The Difference Between Marketing and Branding. [Online] Available at: https://www.tronviggroup.com/the-difference-between-marketing-and-branding/ [Accessed 04 25 2017]. Heng, C., 2015. Appearance, Usability and Search Engine Visibility in Web Design. [Online] Available at: https://www.thesitewizard.com/webdesign/usabilitysearchengine.shtml [Accessed 25 04 2017]. idea.gov.uk, 2017. Local performance indicators for procurement, London, Improvement and Development Agency. [Online] Available at: (https://www.idea.gov.uk/idk/aio/1709573). [Accessed 25 04 2017]. Khadar, A., 2016. Difference between Online and Offline Marketing. [Online] Available at: https://www.linkedin.com/pulse/difference-between-online-offline-marketing-abdul-khadar [Accessed 25 04 2017]. Krishnamurthy, S., 2007. Contemporary Research in E-marketing. [Online] Available at: https://books.google.co.in/books?isbn=1591408261 [Accessed 25 04 2017]. UCSF, 2017. Supply Chain Management. [Online] Available at: https://supplychain.ucsf.edu/ [Accessed 25 04 2017]