E-BUSINESS IN SUPPLY CHAIN MANAGEMENT

CONTENTS

Introduction Background Functions Impact On Supply Chain Performance Revenue Impact Cost Impact Setting Up E-business Advantages Conclusion Reference

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INTRODUCTION

Execution of business transactions over the internet.

Concerned with the use of the Internet to link companies with their trading partners.

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BACKGROUND

Other channels were used for transactions EDI-Electronic Data Exchange Evolved significantly since its introduction in

the 1990’s in parallel with the rapid rate of development of information technology (IT).

IT plays a crucial role in SCM as a key enabler of supply chain integration.

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FUNCTIONS

Provides information across the supply chain Negotiation of prices Allows customers to place orders Allows customers to track orders Filling and delivering orders Receive payment from customers

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REVENUE IMPACT Offers direct sale customers Provides 24 access from any location Aggregating information from various

sources Personalization and customization of

information Implements flexible pricing Speeds the time to market Price and service discrimination Efficient fund transfer

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COST IMPACT

Reduces product handling with a shorter supply chain

Decreases inventory cost Decreases delivery cost and time Reduces facility and processing costs Improve SC cordination

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SETTING UP E-BUSINESS

Integrate the internet with existing physical network

Devise shipment strategies that reflect costs Optimize e-business logistics to handle packages

not pallets Design e-business supply chain to handle returns

efficiently Keep customers informed throughout the order

fulfillment cycle

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ADVANTAGES

Saves money Saves time Easily access of information Easier transaction Updation of new products

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CONCLUSION

E-business has a vital role to play in SCM Still in the first stages of increasing the

recognition of the potential of e-business Have more advantages than disadvantages

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REFERENCE Claudia-Maria Wagner and Edward Sweeney, Dublin

Institute of Technology, Ireland, “e-Business in Supply Chain Management” IGI Global DOI: 10.4018/978-1-60566-808-6.ch002

Sunil Chopra and Peter Meindel “Supply Chain Management”

http://arrow.dit.ie/nitlbk

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Thanks……..