Supply Chain Management (SCM ) is referred to as a very comprehensive and coordinated approach to managing the flow of goods, services, and information from the point of origin to the final customer. The different stages of the supply chain include procurement, production, transportation, warehousing, and distribution technology enhances visibility and communication within the supply chain.
Logistics performs a pivotal position within the basic fulfillment of supply chain management with the aid of ensuring the green and powerful motion of goods, services, and statistics from the factor of origin to the factor of intake. It involves the coordination and optimization of numerous strategies to decorate the general overall performance of the supply chain. Here are the key roles of logistics in supply chain control:
Join 100% online MBA Degree Program.
UGC Entitled and Affordable
The supply chain encompasses various stages, including:
Effective supply chain management streamlines these processes, optimizes efficiency, reduces costs, and enhances customer satisfaction. The efficient flow of information between coordination, collaboration, and all stakeholders, including suppliers, manufacturers, distributors, retailers, and customers. Modern supply chain management often incorporates technology and data analytics to improve decision-making and responsiveness to market demands.
Efficient SCM improves operational efficiency, reduces costs, enhances customer satisfaction, and helps in adapting to market changes.Operational Efficiency:
Streamlines processes and reduces inefficiencies, optimising overall operations.
E-commerce refers to buying and selling goods or services over the internet, encompassing online retail, electronic payments, and digital marketing.E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet. It involves online transactions and the exchange of information between buyers and sellers, eliminating the need for physical presence or face-to-face interactions. E-commerce has become a significant aspect of modern business, transforming the way people conduct trade and engage in commercial activities.
Models include B2B (business to business), B2C (business to consumer), C2C (consumer to consumer), and C2B (consumer to business).
In B2C e-commerce, businesses sell products or services directly to consumers. Examples include online retailers, food supply services, and digital content providers.
B2B e-commerce involves transactions between businesses. It includes the exchange of goods or services between manufacturers, wholesalers, and retailers using online platforms.
C2C e-commerce enables consumers to sell products or services directly to other consumers. Online marketplaces and auction platforms are common examples where individuals can buy and sell items.
C2B occurs when individual consumers offer products or services to businesses. An example is a freelance platform where individuals provide services to companies.
M-commerce refers to e-commerce transactions conducted through mobile devices, such as smartphones or tablets. It includes activities like mobile shopping, mobile banking, and mobile payments.
Social commerce integrates e-commerce with social media platforms. It involves buying or selling products directly within social media networks or through social influence.
V-commerce involves using voice-activated devices or virtual assistants for online shopping and transactions. Users can voice commands to make purchases or inquire about products.
E-commerce has a very big impact on supply chain management (SCM) across various dimensions. The shift towards online shopping has altered the traditional dynamics of SCM by introducing new challenges and opportunities into its realm. One significant change is the demand for quicker order fulfillment and shorter lead times. The direct-to-consumer distribution model has gained prominence in the years, prompting businesses to reevaluate their distribution networks and strategically position various fulfillment centers for more efficient order processing.
The last-mile supply considered the final and crucial leg in the supply chain, has become a focal point. E-commerce’s rapid growth has heightened the importance of optimising last-mile logistics to ensure timely and cost-effective supply to end consumers. The globalisation of supply chains has also been accelerated by e-commerce, with businesses expanding their reach across borders. This necessitates SCM to navigate complex international logistics, customs procedures, and regulatory compliance.
E-commerce brings forth a demand for real-time visibility and transparency throughout the supply chain. Customers now expect detailed tracking information and accurate supply updates. This shift has prompted SCM to integrate advanced tracking technologies, analytics, and information systems to provide real-time insights and enhance overall transparency.
Returns management has become another critical aspect of SCM in the e-commerce era. With higher return rates compared to traditional retail, SCM systems must efficiently handle reverse logistics processes to manage returns and exchanges effectively. The increased complexity of supply chain operations in the e-commerce landscape requires seamless collaboration among supply chain partners. Digital platforms and technologies are leveraged to enhance communication, coordination, and information sharing among stakeholders.
Moreover, e-commerce has driven the integration of cutting-edge technologies such as the Internet of Things (IoT), artificial intelligence (AI), and analytics into SCM processes. These technologies play a crucial role in improving efficiency, enabling predictive analytics, and automating various aspects of the supply chain.
In essence, e-commerce has redefined the priorities of SCM, demanding flexibility, adaptability, and a keen focus on customer-centric operations. Successful SCM in the e-commerce era requires a holistic approach that considers the entire supply chain ecosystem, from manufacturing and distribution to last-mile supply and customer service. E-commerce influences SCM by demanding faster supply times, efficient order fulfillment, and real-time inventory management.
