E-commerce of on Supply Chain and Logistics Essay

E-commerce of on Supply Chain and Logistics - analyse ExampleAccording to Berger, a study conducted by Momentum Research Group found that US organizations involved in internet business solutions realized cumulative cost savings of US $ one hundred fifty- quint billion in a three year period starting in 1998.Johnson and Whang verbalize that the key aspect of allow chain management has been management of information flow, with the transfer of information between companies their suppliers and customers through internet the importance of information management has created an effective supply chain. E-business is defined as a marriage between the internet and supply chain integration. This marriage has led to transformation of many processes at heart a supply chain from procurement to product design and customer management. Various forms of e-business applications tush be categorized into e-commerce, e-procurement and e-collaboration (2002).According to Berger e-commerce seat be def ined as the conduct of business communication and proceedings over networks and through computers or as the buying and selling of goods and services, and the transfer of funds, through digital communications. It can include all inter-company and intra-company functions (such as marketing, finance, manufacturing, selling and negotiation) that enable commerce. E-commerce communicates through e-mail, EDI, file transfer, facsimile, videoconferencing, workflow or interaction with remote computer. E- commerce has also associated with portals, e-marketplaces, e-auctions or virtual inventory. E-commerce impacts upon the three major factors of supply chain viz. Physical, Financial and Informational flows.Impact of E-CommerceAccording to Berger e-commerce essentially gives the companies an access to markets and customers without moving the products and inventory physically, thus the physical movements can be avoided and product information make available through internet.With e-commerce so lutions and information access being made available 24x7x365, product tracking and tracing information are made simple thus eliminating traditional paper based approach. Hence information flow also gets affected by e-commerce.Similarly monetary flows too get affected by faster payments and settlement at every stage of the supply chain by e-commerce solutions.On further analysis it is observed that e-commerce impacts on supply chain for five principle reasons, which are as follows1. Major companies cannot afford to sit silent for underperformance, thus the performance faulting can no longer be hidden.2. The Y2K problem compelled most of the companies to implement untesteder technologies and software. The e-commerce revolution has lead to the borrowing of ERP systems, which manage operations not only internally but also with customers and suppliers. But some companies are in the initial stages of implementation of above steps and thus are unable to enjoy the benefits of these inv estments.3. knowly few years has seen an unprecedented investment by technology companies leading to an acceleration of development of new software technology to support supply chain management. 4. Change of supply chain is a bully task and thus most of the companies have been avoiding some areas of supply chain. The supply chain is one of the last major areas of business benefit.5. The development of internet technologies have made world smaller and supply