Internet based collaboration in the manufacturing supply chain
Impact of Internet on Supply Chain
Transcript of Impact of Internet on Supply Chain
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IMPACT OF INTERNET ON SUPPLY CHAIN
Meaning of production supply chain
Key activities in Supply chain
Impact on Supply chain
Live exampleConclusion
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A production supply chain refers to the flow of physical goods and associated
information from the source to the consumer.
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Production planning PurchasingMaterials managementDistributionCustomer serviceSales forecasting
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1. Cost efficiency2. Changes in the distribution system3. Customer orientation4. Shipment tracking5. Shipping notice6. Freight auditing7. Shipping documentation and labelling8. Online shipping enquiry
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Cost efficiency:Electronic exchange of cargo
documentsStreamline document handling without
monetary and time investmentReduce costs, improve data accuracy,
streamline business processes, accelerate business cycles, enhance customer service
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Flexibility in businessLink between customers and
distribution centers is closer.Customers can manage complex
movement of products and information
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Access rate information, place delivery orders, track shipments and pay freight bills
Builds companies business and enhance shareholder value
Availability of detailed information and conduct of business-self service systems for customers
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Real time informationPerform supply chain management and
decision support functionsEncryption technology
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Automation: electronic transfer of packing list in advanceRecord of details of each pallet, parcel and item being shipped
Freight AuditingReduced risk of overpaymentElimination of paper work
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Reduces manual intervention- the standard bills of lading, shipping labels will be automatically produced.
Specialized export documentation.Paper work is reduced- Increases efficiency
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Instant information from any locationParcel shipments can be trackedProof of delivery quickly confirmedNegotiation of rates
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Hilton Hotel implemented an electronic ticketing scheme through their website in order to make an easier booking of rooms and meeting facilities (2000). According to, Hilton Hotel’s senior VP for e-business and distribution, the internet facilitates the hotel’s interaction and helps in the transformation of customer-business relationship.
Adlon Hotel in Stockholm increased its clientele by maintaining a website that caters to specific international languages such as German, French, Italian, Spanish, Portuguese, and Scandinavian languages and English (1998). Also, the application of multilingual website of Adlon Hotel reduced the amount of advertising using the mainstream media. As to this case, international advertising is cost effective and at the same time extensive in scope. Just by taking the pains of translating one single page of Adlon Hotel’s website and promoting these language gateways into the site, the marketing operations significantly improved ( 1998)
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