Tuesday, December 31, 2019

The Impact of E-Commerce Developments on Supply Chain

ÂÆ'ÃÅ" Introduction In recent years, the impact of E-Commerce (EC) on supply chain (SC) has caught considerable attention. Many companies in the supply chain engage themselves in the field of EC to pursue benefits. This report is authorized by the CEO and focuses on the improvements brought in by EC in SC. In the first section, it gives a brief overview of the supply chain management (SCM) and EC concepts; in the second section, it discusses the benefits offered by EC such as convenient information interchange; lower inventory level, less management time, value-added relationship and cost effectiveness; the security and legal problems with EC are also mentioned in the third section; in the last section, the report gives out the author ¡Ã‚ ¦s†¦show more content†¦Suppliers could also enhance communication with customers and realize customization, because they could communicate with customers directly through Internet. After information is transferred and collected, EC could also make it possible to analyze data conveniently simply through a computer. Fraser et al., (2000) presents that improved information gathering and processing could be realized by EC. Srinivasan, et al. (1994) recognize that increasing vertical information sharing using EDI technology can enhance shipment performance of suppliers and greatly improve the performance of the supply chain system. Benjamin and Elsie, (2003) illustrate that EC provides the channel for each party to get the required information to avoid information scarcity or information overload, improves the accuracy of data entry and transmission, and realize the in-time communication. Angeliki and Loukas, (2003) also gives following opinion about information flow in the EC environment: Effectively EC streamlines the flow of information across and within organizations with significant value adding potential. 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