Essay about Supply Chain Management And How They E Commerce Environment

786 Words Dec 15th, 2016 4 Pages
Finally I am going to go through the Supply Chain management and how they e-commerce environment has changed this, to do this I will look at the components and the push and pull systems. But first I will define supply chain management as “Effort involved in producing and delivering a final product from the supplier’s supplier to the customer’s customer” (Larson 1998 p1). Issues that have faced businesses has been the cost of supply chain management with regard to having high inventory cost and the benefits of having a lean supply chain has benefited the food retail industry as reducing costs is a must in order to be competitive. However e-commerce has had a massive impact on supply chain management with regards to the cost of supply chain management especially with regard to dropshipping which has now allowed essentially anyone to set up an e-commerce business and achieve an efficient supply chain with little cost a task. Unlike earlier costing Wallmart Billions of Dollars to develop an efficient supply chain. With this in mind I feel it is important to discuss the Push and Pull system which is a conversation in which has been developed as a result of the e-commerce environment. Push Model defined in (Laudon 2016 p754) “Where products are made prior to orders received based on estimated demand and then stored in a warehouse waiting sale” and the for Pull Model defined in the same book as “Where products are not built until the order is received”. E-commerce has resulted in…

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