Tag Archives: supply chain

Impact of E-commerce on Supply Chain Management

Impact of E-commerce on Supply Chain Management

E-commerce Technology
E-commerce Technology

Electronic commerce or E-commerce is commonly known as a technique trading in products or services by using computer networks, such as the Internet etc. Now days this E-commerce technology helps many business organizations in maximizing their profit by optimizing in supply chain management system.
Before the E-commerce technology, companies had been faced troubled by using the supply chain technology, however, the emergence of e-commerce has provided a more practical and effective way of delivering the benefits of the new supply chain technologies that increase the profits of the organizations.

 

Supply Chain Management SystemAC
Supply Chain Management SystemAC

E-commerce is such a technology has the capability to integrate all inter-company and intra-company functions together, meaning that the three flows (physical flow, financial flow and information flow) of the supply chain could be also affected by the e-commerce technology. The effects of physical flows improved the way of product and inventory movement level for different companies or organizations. For the flows of information, e-commerce optimised the capacity of information processing system than companies used to have, and for the financial flows, e-comers allows companies to have more efficient payment system and settlement solutions that changes the whole way of supply chain system.

So, the e-commerce has a more sophisticated level of impact on supply chains management system. This is the reason why most of the companies now days preferring the E-commerce technology.
So these are some things about E-commerce and supply chain management system.