E-commerce In Supply Chain Management - Roles And Importance

Jul 12, 2022

Supply chain management (SCM) is a commonly heard word these days. This process includes numerous tasks such as preparing, managing, scheduling, and controlling the acquisition, production, and delivery of products to clients. It is the backbone of every business and is vital to its success. Though a standard business term, it is a complicated process that guarantees all accomplices, from providers to makers and beyond, performs effectively.

SCM works on effectively linking the client and the supplier in the businesses. It addresses a conscious action by the supply chain firms to create and run supply chains in the best and most productive ways. Since it's a vast, complex undertaking, each partner should communicate and cooperate to make efficiencies, oversee risk and adjust rapidly to change.

More and more people are now opting online to find and buy the things they need. Shopping online has become very helpful, frequently financially savvy, and less tedious as purchases can be made with a click of a button. The trend has even transformed into a more active shopping festival. This has become possible only because E-commerce and supply chain management can work hand in hand.

Role of E-commerce in Supply Chain Management –

The development of E-commerce businesses has affected supply chain management in more ways than one. To begin with, it has expanded the interest for faster delivery, coming down on suppliers to deliver items quickly and proficiently.

Apart from this, it has made it easier for the consumers to get the products at reasonable prices, leading to increased price competition among suppliers. Above all these, it has opened new doors for businesses to reach buyers in fresh and imaginative ways.

Advantages of E-commerce in Supply Chain Management –

(1) Cost-Cutting – E-commerce empowers transportation businesses to exchange documents online during the whole process. Furthermore, it enables shippers, cargo forwarders, and logistic companies to document management processes without making critical financial or time investments.

(2) Change Demand Patterns – Innovation, globalization, and online business are becoming more interwoven, and companies are moving to build their network and transaction speed. Because of the headways in innovation, companies can immediately speak with clients by accommodating their requirements and understanding their purchase behaviors.

(3) Transparency – It increments network transparency and helps oversee all activities occurring across supply, production, warehousing, and delivery. The process helps in better tracking and administration of the operations, from obtainment to conveyance of conclusive merchandise to the end client.

(4) Enhanced Customer Relationship – On-time deliveries have a substantial impact on customer behavior. Keeping track of client needs and working according to changes in their service & product demands is essential in building a solid relationship with them. Organizations can secure direct feedback and prerequisites concerning their items through an E-commerce integrated supply chain.

(5) Faster Delivery – Production, delivery, or logistical issues all essentially influence brand reputation in the commercial center. All activities might be facilitated and executed well with a powerful SCM. It is good to reduce delivery delays and avoid losing revenue while working on enhancing the company's reputation & client connections.

According to Mr. Basem Barry, founder & CEO of the B A Barry Group, a robust supply management system is turning into the strategic decision for the companies to contend in the corporate world. E-commerce business provides an essential means for successful supply chain management, which improves economic benefits, reduces production costs, and offers a competitive force to the businesses to become successful.