|
SUPPLY CHAIN MANAGEMENT AND ECOMMERCE
A supply chain means the
flow of products and information
associated with those products from the
starting point to the customer. The
important activities in a supply chain
are:
-
Sales forecasting
-
Customer Service
-
Distribution
-
Materials Management
-
Purchasing
-
Production Planning
These activities are very
important for any operation to succeed
whether they are service providers,
wholesalers or manufacturers. The
internet and Ecommerce have changed the
nature of the supply chains, and have
redefined how consumers know about, make
their choice, buy and make use of the
services and products. This has resulted
in “business to business” supply chains
which are focused on the consumer rather
than on the products. Customized
services and products are also provided.
Ecommerce has impacted the process of
supply chain management in various ways
which include:
Cost Efficiency –
Transportation companies, big and small,
exchange documents electronically. This
is very convenient as there is no need
of physical documents to be carried
around or posted from one company to
another. Ecommerce has allowed trucking
firms, freight forwarders and shippers
to stream line their document handling
activities without investing much time
and money that was required in
traditional document management systems.
With ecommerce, firms can
enhance customer service, accelerate
business cycles, stream line business
processes, improve the accuracy of data
and reduce costs drastically. Ocean
carriers can exchange many important
documents with their trading partners
with high efficiency and accuracy. The
only hardware that you will require to
get all these benefits for your company
is: an internet connection and browser
and a computer.
Changes in distribution
system – Ecommerce will help businesses
to manage the complex movement of
information and products between
customers, suppliers and businesses.
Ecommerce is used to close the link
between the distribution centres and
customers. Customers will also be able
to manage the movement of information
and products through the chain.
Customer Orientation –
Ecommerce is an important link between
the internal and external transportation
services. It will help firms in
delivering better products and services
to the consumers and increase the rate
of growth of their companies. It will
also lower costs of the business. Using
internet and ecommerce will permit
customers to pay freight bills, track
shipments, place delivery orders and
access information regarding rates.
Shipment Tracking –
Ecommerce allows companies to provide
account to their users which they can
use to get real time status of their
cargo shipments. They can also submit a
freight claim, analyze charges, place a
cargo order and submit lading bills.
Additional, electronic commerce permits
customers to track down each of their
products and make some decisions
regarding their support functions.
Encryption technologies are used to make
the business transactions secure.
Shipping Notice –
Ecommerce has automated the process of
receiving by transmitting a list through
the internet. Therefore, firms can now
record and track each parcel, pallet and
any item that is shipped.
Freight Auditing – This
makes sure that every freight bill is
efficiently reviewed. This results in
reducing the risk of overpayment and
eliminates paperwork. |
