Hi
I'm an IT Manager, and I've recently done a study for a customer on
the benefits e-commerce would bring to their supply chain. Here's my
view.
Traditional bricks-and-mortar Supply Chain managment includes
suppliers, manufacturers, distributors, retail outlets, and customers
all working in partnership, using transactions to purchase,
manufacture, assemble or distribute goods and services to the consumer
or end user.
A traditional supply chain consists of all the paths that allow for
business transactions within the chain and encompasses beginning wtih
the basic raw materials through to delivering the final product.
The focus of traditional supply chain management is on how firms use
processes and technology to enhance competitive advantage by ensuring
that links at any point in the chain work together to reduce business
costs and ultimately to reduce the price for the consumer. Efficiency
gains and savings are shared by all links in the chain.
e-commerce allows some links in the chain to be bypassed and takes
advantage of technology to eliminate wholesalers and retailers by
reaching the customer directly. Additional Supply Chain processes --
such as marketing and purchasing - are usually managed across a
company in linked processes (whereas previously it would have been
down either by a seperate unit or even a seperate company) to minimize
unnecessary delays, interruptions, and uncertainity.
Benefits from using e-commerce in Supply Chain Management include:
- faster order processing;
- reduced inventory due to better stock control;
- improved cash flow,
- reduced steps in the order handling process;
- improved commuinication straight to the customer/consumer;
- enhanced coordination with the consumers needs;
- fewer stock shortages;
- faster processing.
When ecommerce works properly all of these benefits can lead to
greater customer satisfaction than with the traditional
bricks-and-mortar approach.
Hope that helps
Willie
Open Directory has a whole section on Supply Chain Management at
http://dmoz.org/Business/Management/Supply_Chain/
This site has just about all you'd ever want to know about Supply
Chain Management
About Logistics
http://logistics.about.com/
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