Introduction
E-commerce, often referred to as “e-business,” involves the purchasing and selling products and services through an electronic network, typically the Internet. It may also entail electronically transmitting payments or data from one person to another. These corporate transactions may be business-to-consumer (B2C), business-to-business B2B, consumer-to-consumer C2C, or consumer-to-business (C2B). Online shopping has grown significantly due to the widespread usage of e-commerce sites like Amazon and eBay. The U.S. Statistics Bureau estimates that 5% of all retail purchases in 2011 were made via e-commerce. When the COVID-19 virus broke out in 2020, it increased to over 16 percent of retail trade. Customers may visit an online shop to search through the selections and make purchases using their gadgets because e-commerce is facilitated through the Internet.
Impact of Ecommerce on supply chain management
E-commerce is one of the sectors of the global economy that is developing the fastest, which increases the potential for supply chain management in the future (Dragomirov, 2020). The main advantages it offers customers are the flexibility to do business at one’s speed and at the desired time, cheaper expenses of commerce and company processes overall and easy activities that can be completed anywhere. A unified business community where vendors and buyers may easily engage across regions and at more convenient times is created as a result of technologies for E-commerce.
The capacity of e-commerce to generate corporate value and widespread knowledge among many stakeholders of its possible advantages for corporate entities has significantly impacted its fast technical development and expansion. Regardless of the magnitude or form of returns, benefits are the primary motivation for most businesses, families, or people. Through the numerous supply chain management activities, e-commerce offers supply chain management a plethora of advantages. Businesses are impacted by e-commerce by improving control, coordination, and integrated planning of all logistical business processes and activities in the supply chain to provide customers with better value.
E-commerce applications are used in supply chain management to reduce costs for the whole chain while also meeting the interests of other stakeholders, such as adhering to legal obligations and standards set by several consumer advocacy groups. The numerous applications included in this framework concentrate on integrating the output, enhancing data transparency, and offering the best distribution of value-adding operations. Through B2B, e-commerce creates a fictitious electronic marketplace in which all transactions are carried out in a predetermined sequence (Murdiana & Hajaoui, 2020).
One of the most valued technological advances in recent years is the emergence of electronic marketplaces, which enable the creation of a virtual village market that unites all service providers and consumers in a single online marketplace. Replacing outdated manual processes with contemporary automated electronic ones enhances the number of possible trade partners since they have a more significant market penetration than the latter, therefore improving procurement operations’ effectiveness.
Through e-commerce Management of supply chains is coordinated and organized, allowing for regulated information flow, trade alliances, and money movement. These contemporary firm management methods require sufficient knowledge of related industries and marketplaces. E-commerce applications can benefit from a more comprehensive data management of supply chains technique, but this artificial environment is costly. E-commerce models provide supply chain management and efficient data technical support services for businesses. The supply chain, B2B e-commerce, not only makes the information-sharing procedures between businesses more accessible and directly connects them to the entire industry operations and the supply chains.
Applications for e-commerce in supply chain management give network technology a fundamental advantage by enabling the quick collecting and processing of massive data and data in supply chain procedures. Manufacturers, resources, suppliers, and vendors may utilize this information to create helpful supply- and demand- forecasting that will ensure information flows smoothly across the whole supply chain and assist the industry in managing and coordinating all its stakeholders. The use of e-commerce apps enables the flow of extensive data and information about supply chains for efficient resource management, which raises operational effectiveness throughout the supply chain.
E-commerce supply chain management has the potential to provide automated information processing, such as inventory control, purchasing management, the fulfilment of customer orders, and a logistics and distribution services system (Wang et al., 2020). these features have the potential to enhance and improve the flow of goods and services throughout the supply chain. The growth of e-commerce supply chain management enhances the businesses’ existing competitive advantage by providing them with effective multi-enterprise apps that support their e-business strategy and allow them to pick their business. Enterprises may use information technologies such as EDI to increase the efficiency of the operations associated with the supply chain and boost the overall supply chain management’s capacity for decision-making.
The development of a new e-commerce consumer interaction management system builds and enhances the flow of information and information circulation to maintain new customer relationships, which exemplifies the impact of modern e-commerce on procurement. Additionally, it makes it easier to create effective marketing channels. Enterprises employ the services of e-commerce merchants and distributors to set up the purchasing and inventory optimization by putting contemporary Ecommerce principles to use.
The information system may also learn about retail commodity sales data based on ongoing replenishment and sales advice. This will allow marketing and retail to work more effectively to increase customer happiness and channel effectiveness. E-commerce revolutionizes, produces changes in the structure of goods and services, and affects the flow of usable goods and services, which results in altered distributions and modes of operation. Software selling directly to clients without sorting or other logistical activities may also alter company practices.
E-commerce sometimes assists in constructing cross-business value chains by utilizing each company’s core strengths and industry-standard standards (Hermelin et al., 2021). Additionally, it makes it easier to construct an enterprise value chain via electronic trade. Manufacturers and retailers employ these third-party services, the logistical and data handling outsourcing since they are not responsible for managing and controlling every aspect of their supply chain. As a result, e-commerce allows outsourcing to boost productivity and save costs.
A value chain comprises suppliers such as producers, merchants, and logistical information services. For instance, the airline industry’s reservation systems are extensively used in the transportation sector, as opposed to autonomous reservation systems used by each company. In order to achieve short reaction times and low inventory levels, the contemporary supply chain within e-commerce combines the channels within an e-commerce framework that emphasizes consumer value and linked structure across the supply chain system (Tien et al., 2019).
The current strategy makes supply chain management on e-commerce platforms more accessible to new clients and business ventures. It may reorganize the company to keep its current clients while also increasing the performance of the whole supply chain. It draws new clients to join the distribution network and introduces new companies, boosting the chain generally since it may provide companies with additional benefits. Complete corporate networking in the industry by offering all the data to accomplish various services; the current Ecommerce strategy also allows information exchange for consumers without the use of the modern Internet in order to achieve client sales.
Given that we live in the age of information, businesses create a centralized information management system to make it easier for users to access crucial data, such as information on cash inflows and customer orders, through a network. The need for data from businesses and people puts businesses under pressure from market competition, which keeps this degree of information sharing improving. Enterprise operations may reach a greater level of flexibility via the implementation of a powerful converging of information that not only can match customers’ needs and supply accessibility but also readily enable internet shopping and tracking for consumers.
By implementing e-commerce elements, the organizational model makes it possible to increase operational productivity. It facilitates the creation of a trading platform, logistic support network links, computer communication systems, and upstream and downstream. Enhancement of corporate payments between organizations realized through computer systems, such as the transmission of purchases and the establishment of exchange verification on a digital e-commerce platform and data exchange system. Modern e-commerce may facilitate subcontracting of the whole supply chain by combining a unified corporate framework for a single company, which results in greater workforce levels of oversight and enhance operational effectiveness. In order to consistently lower operational expenses and enhance operating performance, contemporary e-commerce blends several approaches and skills.
Conclusion
Because it makes it possible for transportation firms to exchange papers electronically throughout the fulfilment process, e-commerce influences supply chain management. Additionally, it makes it possible for trucking businesses, freight forwarders, and shippers to simplify their document management procedures without spending much money or time. Businesses may use e-commerce to reduce overall costs, improve data accuracy, reorganize supply chain operations, accelerate business cycles, and enhance customer service. As a result, companies constantly take advantage of the chance to increase their connection and transactional speeds. Because of technology improvements, companies can now engage with clients quickly, addressing their wants and comprehending their purchasing habits.
References
Dragomirov, N. (2020). E-Commerce Platforms and Supply Chain Management–Functionalities Study. Economic Alternatives, 2, 250-261.
Murdiana, R., & Hajaoui, Z. (2020). E-Commerce marketing strategies in industry 4.0. International Journal of Business Ecosystem & Strategy (2687-2293), 2(1), 32-43.
Wang, Y., Jia, F., Schoenherr, T., Gong, Y., & Chen, L. (2020). Cross-border e-commerce firms as supply chain integrators: The management of three flows. Industrial Marketing Management, 89, 72-88.
Hermelin Engberg, E., & Ivarson, A. (2021). The implications of Information Technology for Demand Management transitions-A case study of a consumer electronics supply chain.
Tien, N. H., Anh, D. B. H., & Thuc, T. D. (2019). Global supply chain and logistics management. Dehli: Academic Publications.
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