E-Business: Supply Chain Management Essay
Supply Chain Management (SCM) involves a series of steps where the company plans, sources, creates, delivers and assesses its component procurement processes in the interest of efficiency, economy and quality. With the advent of the internet, globalization and e-commerce, supply chain management now has the possibility of becoming an efficient global process for every company. E-commerce has facilitated the creation of a network of supply chain partners where members can easily communicate and fill demands (Pithadia & Gunasekaran, 2005).
E-commerce creates a platform where business exchange and the process of procurement can occur efficiently regardless of location. Through e-commerce buyers and sellers can easily find each other and subsequently create a business partnership through e-procurement. The advantage of the accessibility of e-commerce and suppliers through their internet presence means supply chain managers can better address the efficiency and economy of the supply chain process.
The ability to communicate and transact with global sellers, coupled with new technology that allows for better shipment tracking and minimize uncertainty greatly revolutionizes the prospects for global supply chain management. However the benefits of e-commerce to SCM are not limited to procurement activities. Through improved business-to-business interactions companies from across the world are able to collaborate and
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SCM is not limited to raw materials alone. In the case of the touch screen menu, e-commerce and the opportunity of global supply chain management could spell increased profitability after sales. Through e-commerce cheaper sources of component parts may be found in countries such as China and India. Similarly, since labor is cheaper in some countries, production may be designed to incorporate more labor intensive operations versus IT automation (Wailgum and Worthen, 2008).
Pithadia, V. and Gunasekaran, M. (2005). E-business and Supply Chain Management – A New Methodological Approach. Retrieved March 22, 2009, from IndiaMBA website http://www. indianmba. com/Faculty_Column/FC152/fc152. html Wailgum, T. and Worthen, B. (2008). Supply Chain Management Definition and Solutions. Retrieved March 22, 2009, from CIO web site http://www. cio. com/article/40940/Supply_Chain_Management_Definition_and_Solutions#scm_abc