E-Commerce

E-Commerce Supply Chain Management Paper, Wk. 3

E-Commerce Supply Chain Management Paper, Wk. 3

This paper will discuss how e-commerce impacts modern supply chains. It will explore and discuss elements of integration, collaboration, synchronization and key B2B entities described in the 2004 article, "The Strategic Importance of E-Commerce in Modern Supply Chains", by Gibson and Edwards, from UOP EResource.

As described in the article by Gibson and Edwards, supply chain encompasses all activities associated with the flow of materials, information and services from raw materials through the product or service processing facilities and warehousing, and then to the end user. This process includes the sourcing and procuring of raw materials for assembly and production, to inventory management, order fulfillment, distribution, transportation, and finally delivery (Gibson, Edwards, 2004). Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption (Wikipedia, 2006).

E-commerce is essential in respect to supply chains. Strategic opportunities for internet-based technology in establishing partnering relationships and collective decision making amongst supply chain personnel is extremely important. Internet-based technology can provide mutual strategic benefits to all with enhanced customer service, reduced work in progress, faster response times and enhanced customization (Gibson, Edwards, 2004). According to this article, there can be little doubt that the most significant enabler of improved supply chain management efficiency is business-to-business (B2B) e-commerce. Of course, this is dependent on the use of the internet to integrate and synchronize supply chain activities. Internet e-commerce can remove gaps in communication and maintain a focused view on the service given and received by the final customer. The unpredictability of supply and demand and the need to stay connected with supply chain parters has made internet tools vital for competitive organizations (Gibson, Edwards, 2004).

B2B tools facilitate integration and synchronization of the supply chain functions. This is accomplished through "part physical and part Internet" or by fully automating the supply chain to enable internal and external trading partners to electronically conduct business (Gibson, Edwards, 2004).

The internet revolution enabled organizations to perform more B2B supply chain processes such as a faster and more accurate flow of information to assist in better decision making, easier and faster negotiations of contracts and trade with partners and suppliers, easier order placement and fulfillment, better logistics and warehouse management, and easier financial transactions between trading partners in the supply chains (Gibson, Edwards, 2004). B2B e-commerce tools improve upon efficiencies and assists in driving supply chain to real time. As stated in the Gibson, Edwards article, B2B e-commerce has two main types of impact on supply chains. One is aggregation of suppliers and buyers and the other is the facilitation of information exchanges in businesses and relationships. Access to information through B2B applications affect the entire business of supply chain activities such as products, customers, suppliers, transportation, inventory, and processes. Key entities in B2B e-commerce are the buying and selling, trading platforms, logistic providers, network platforms, protocols of communication and back-end integration