importance and effect of e business on supply chain management

1. E-BUSINESS IN SUPPLY CHAIN
MANAGEMENT

2. CONTENTS
 Introduction
 Background
 Functions
 Impact On Supply Chain Performance
 Revenue Impact
 Cost Impact
 Setting Up E-business
 Advantages
 Conclusion
 Reference 2

3. 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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4. 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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5. 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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7. 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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8. 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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9. 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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10. ADVANTAGES
 Saves money
 Saves time
 Easily access of information
 Easier transaction
 Updation of new products
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11. 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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12. 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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