The Impact Of E-Commerce On Supply Chain Management

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 …show more content…
Reasons for this include firstly the cost of the push system has become too much also customers now with the development of technology are becoming much more knowledgeable about products and using a system of manufacturer led is becoming uses less and less, the long tail business model has hurt this as customers have now a near infinite choice of products to choice from and the portfolio is so diversified to the extent that it is now impractical to develop a product for years and the constant challenge of targeting customers. The final impact of e-commerce on supply chain management is a cloud computing, this is revolutionary for many businesses because in order to take advantage of supply chain as we have established it is as expensive endeavour but with cloud computing supply chain many different sized businesses can use. Cloud based supply chain management is linked to what I have written earlier with regards to the three different types of companies it is from (Danila 2014 p73) “To survive the storming economical context enterprises must adapt from the new available