A production supply chain refers to the flow of physical goods and associated information from the source to the consumer. Key supply chain activities include production planning, purchasing, materials management, distribution, customer service, and sales forecasting. These processes are critical to the success of any operation whether they’re manufacturers, wholesalers, or service providers.
E-commerce impacts supply chain management in a variety of key ways. These include:
Cost efficiency:
E-commerce allows transportation companies of all sizes to exchange cargo documents electronically over the Internet. E-commerce enables shippers, freight forwarders and trucking firms to streamline document handling without the monetary and time investment required by the traditional document delivery systems.
By using e-commerce, companies can reduce costs, improve data accuracy, streamline business processes, accelerate business cycles, and enhance customer service. For example, Ocean carriers and their trading partners can exchange bill of lading instructions, freight invoices, container status messages, motor carrier shipment instructions, and other documents with increased accuracy and efficiency. The only tools needed to take advantage of this solution are a personal computer and an Internet browser.
Changes in the distribution system:
E-commerce will give businesses more flexibility in managing the increasingly complex movement of products and information between businesses, their suppliers and customers. E-commerce will close the link between customers and distribution centers. Customers can manage the increasingly complex movement of products and information through the supply chain.
Customer orientation:
E-commerce is a vital link in the support of logistics and transportation services for both internal and external customers. E-commerce will help companies deliver better services to their customers, accelerate the growth of the e-commerce initiatives that are critical to their business, and lower their operating costs.
Using the Internet for e-commerce will allow customers to access rate information, place delivery orders, track shipments and pay freight bills. E-commerce makes it easier for customers to do business with companies: Anything that simplifies the process of arranging transportation services will help build companies' business and enhance shareholder value.
By making more information available about the commercial side of companies, businesses will make their web site a place where customers will not only get detailed information about the services the company offers, but also where they can actually conduct business with the company.
Shipment tracking:
E-commerce will allow users to establish an account and obtain real-time information about cargo shipments. They may also create and submit bills of lading, place a cargo order, analyze charges, submit a freight claim, and carry out many other functions. In addition, e-commerce allows customers to track shipments down to the individual product and perform other supply chain management and decision support functions.
The application uses encryption technology to secure business transactions.
Shipping notice:
E-commerce can help automate the receiving process by electronically transmitting a packing list ahead of the shipment. It also allows companies to record the relevant details of each pallet, parcel, and item being shipped.
Shipping Documentation and Labeling:
There will be less need for manual intervention because standard bills of lading, shipping labels, and carrier manifests will be automatically produced; this includes even the specialized export documentation required for overseas shipments. Paperwork is significantly reduced and the shipping department will therefore be more efficient.
Online Shipping Inquiry:
This gives instant shipping information access to anyone in the company, from any location. Parcel shipments can be tracked and proof of delivery quickly confirmed. A customer's transportation costs and performance can be analyzed, thus helping the customer negotiate rates and improve service.
Risks:
- Trust
In most of the cases, customers do not trust to conduct business with a newly introduced company because they have no well reputation on the market. To achieve the belief of people, the company has to be determined to make the company’s business purposes very well.
- Internet connectivity
Although e-commerce has a significant impact on supply chain management system, but e-commerce is fully dependable on the internet. So, failure of internet connection (for example, natural disaster, power failure etc) may cause a negative impact on business such as a firm can not contact with customers and other business partners, delay of delivery etc.
Supply chain management links and coordinates the activities of involved in buying, making and moving a product .It also integrates supplier, manufacture, distributor and customers by reducing time and inventory costs. E-commerce advantages are taking companies a substantial step forward by providing customers with a faster and easier way to do business with them.
