Supply Chains in the Age of E-Business

Amir Subhani, Jindal Global Business School, Sonipat, Haryana.

(E-mail: 12jgbs-asubhani@jgu.edu.in, Mobile: +91 9050423280)

For shorter product life cycle, firms need to manage their supply chain efficiently. The present day information technology system has become powerful tool for efficient supply chain process especially retailers and manufacturers. Industries have started to renovate by applying new management theme to fulfill the requirement for face to face interaction, resulting in the shorter lead time and reduced warehousing.

Internet not only provides consumers more power to compare prices but also allows companies to find more distributors easily without paying commission to brokers. It also helps in effective tracking of goods. Supply chain in e-Business focus to minimize transaction process which ultimately benefits customers. For example in case of Levi Strauss, executives were unable to track its moving products. They were unknown to the quantity of jeans manufactured in different factories as well as the amount in trucks or in distribution centers. These inefficiencies caused major control issues over its distribution channels due to which only 65% Levi Strauss’s products were able to reach the customers on time. For Levi Strauss, they are required to meet the needs of Wal-Mart and other major retailers. One of the major requirements of Wal-Mart and other major retailers is that their supplies be reliable so that the shelves are always stocked. This means that Levi Strauss’s success largely depends on their supply chain which it improved and leveraged information technology in its supply chain. The figure 1 shows the outlook of E-Business module for enhanced Supply Chain Management.

Figure 1: E-Business module for Supply Chain Management

(Source: M. Eric Johnson, Seungjin Whang, Fibre2fashion.com)

Internet has brought the revolution in conducting business. Dell showcases its product through the medium of internet. Solectron and Ford increased product design collaboration using this service. UPS and Federal Express have provided the facility of tracking their packages just through internet. E-Business allows firms to enhance revenues by direct sales to customers by bypassing retailers. It can enhance revenues by speeding up collection of funds.

 

Figure 2: E-Business Environment and Strategies

(Source: http://www.prudens.com/images/ebusenvirstrat2.gif )

 

The following are some of the software applications are being used in E-business for better supply chain management:

 

Software	Manufacturer
ASSIST4	AEB, GERMANY
Electronic Data Interchange(EDI)	ACOM Solutions, ACT data services
Microsoft Dynamic NAV	Microsoft
Logistic Functions in SAP	SAP

E-Business module creates the e-Business environment and strategies as shown in figure 2, which enhances the supply chain management and deriving the maximum benefits by shortening the business process with the advances of information technology companies also, can restructure the logistics flows of their products to gain efficiencies.

References:

1. M. Eric Johnson, Seungjin Whang, e-Business and supply chain management: An overview and framework, [Retrieved from fibre2fashion.com].
2. http://www.kellogg.northwestern.edu/faculty/VanMieghem/htm/e-business-SCMR-April26.pdf
3. http://www.avyg86.dsl.pipex.com
4. http://voices.yahoo.com
5. http://www.saycocorporativo.com
6. http://www.pearsoned.ca
7. http://www.scribd.com/doc/55494080/Enterprise-Systems