ROLE OF SUPPLY CHAIN MANAGEMENT IN E Commerce

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ROLE OF SUPPLY CHAIN MANAGEMENT IN E- COMMERCE

E-commerce does not just mean trading and shopping on the Internet. It
means business efficiency at all operation levels. Executives know it is
critical to effective business operations, but until now quantifiable
performance measures have been as scarce as the number of corporate
executives of China who heard of the phrase "supply chain
management" (SCM). Supply Chain Management means coordinating,
scheduling and controlling procurement, production, inventories and
deliveries of products and services to customers. The SCM is the
backbone of E-commerce, a very critical component of E-commerce.
Supply Chain Efficiency means having the right product at the right place
at the right time, can save money/reduce costs, and can enhance cash
utilization. A significant number of companies in the United States have
implemented their Internet platform for Supply Chain Efficiency in the
past 2 to 3 years, and the large of them will follow in the next few years.
We will briefly review how the SCM can bring the benefits to the western
corporations and Chinese corporations. Some case studies and B2B
standard proposal will be presented to illustrate the benefits and
bottleneck of E-commerce implementation in China. Supply Chain
Management has very important role in E- Commerce.

Advantages of e Commerce Supply Chain Management:

The competitiveness among e Commerce businesses is rising day by


day. Internet access has helped customers to easily access e
Commerce sites and purchase. An effective and efficient e Commerce
SCM provides connecting with customers and converting leads.

Transparency
SCM provides clear visibility across the entire network. It assists the
users to invigilate the status of all the undergoing activities across
supply, production, warehousing, and distribution. This ensures a more
comprehensive tracking and management of all process from ordering to
shipping of finished products.
Enhanced CRM
The merits of good CRM can’t be overlooked! SCM ensures timely
deliveries, which in turn keeps the customers happy. Also, it assists the
business to keep an eye on the requirements of the customers. It makes
sure that the business is attuned to changes in various demands of the
products and services. With the help of an e Commerce integrated
supply chain, businesses can get requirements and feedbacks about
their products directly.

Minimized delays
Delays in delivery can cause strained relationships and lost business.
Late shipment from vendors, holdups during production, and logistic
errors in distribution channels negatively affect a company’s image
amongst its customers. With an effective SCM, all activities can be
coordinated and executed from top to bottom.

Cost reduction
One of the principal reasons due to which the customers invest their time
and money in e Commerce is reduced costs. Probably, there are a lot of
areas where business invests more than required. Some of such areas
could definitely be streamlined. It’s worth taking a look at your supply
chain to recognize areas where the costs could be cut down.
An e Commerce based SCM removes various stages of distribution,
retailers, and more. This also means higher profits!

Adoption of omnichannel practices


A well structured SCM facilitates omnichannel engagement which in
turn, leads to further technological advancements leading to increasingly
sophisticated customer engagement. And, this cycle continues.
Omnichannel and eCommerce are now selling and shipping paradigms
with new touchpoints for customers. It’s all about customer convenience
and expectations. This ensures a very different dynamic that places
power in the hands of the customers, resulting in greater CX.

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