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Global Sourcing Scenario and Ecommerce
How is ecommerce defined and what does
it do to augment Global sourcing?
Ecommerce stands for electronic commerce
and it permits merchants to carry out
domestic or international or both kinds
of trade on the Internet. Ecommerce is a
boon for the global sourcing industry
and also the import and export industry
because the volume of goods coming in
and going out of the country has
increased exponentially due to the
widespread use of ecommerce. The boost
for import and export and global
sourcing through ecommerce is due to its
flexibility. The activities like data
and monetary transaction, monitoring
supply chain and online marketing can be
completed in a dependable and convenient
manner.
Evolution of ecommerce due to Global
Sourcing
It is difficult to confirm the fact that
import and export has increased rapidly
due to the emergence of ecommerce, but
it has surely made Global Sourcing much
easier to monitor through it
evolutionary phases. 30 years ago,
ecommerce facilitated transfer of funds
and exchange of Pos electronically. It
also allowed multinationals to send and
receive bills and invoices while doing
international trade. The new
manifestations in the ecommerce industry
are Electronic Teller Machines that have
overtaken endorsing of invoices that are
not signed and internet credit card
processing in international trade.
What is the reason for ecommerce to be
very popular in Import and Export and
International Trade?
From both perspectives trade in
conducted with more ease when it is done
electronically. The reasons for this are
given below:
-
Easy and quick setting up of
ecommerce stores that can be used
for both import and export and
global sourcing.
-
Automated maintenance of the export
and import company as there is no
need to keep too many people.
-
Global sourcing companies and agents
can list or evaluate import and
export vendors on the internet.
-
Automatic documentation for each
import and export and global
sourcing transaction.
-
Capable of handling many secure and
quick money and data transactions
that is crucial for international
trade.
Security Concerns
Convenience does not come for free which
means ecommerce does not come without
security concerns such as loss or misuse
of data which is one reason why import
export operators are not engaging in
ecommerce for their international trade.
However, the providers of ecommerce
services have SSL technology which
encrypts data before transferring it to
your clients. Therefore, ecommerce is
very secure for both the global sourcing
agents as well as the import export
operators.
Ecommerce has emerged internationally
because the international trade partners
and the import export companies have
accepted it. In spite of its security,
ecommerce is very popular only on the
domestic front and is yet to be widely
accepted on the international front. The
primary reason why import export
companies adopted ecommerce is to
decrease the costs due to delays in the
processing of invoices and PO’s. This
delay which was caused by traditional
methods renders the Global sourcing
industry useless. |
