OSM CLUBIIM KASHIPUR

SUPPLY CHAIN MANAGEMENT IN E-

COMMERCE

Supply chain management

plan

source

make

deliver

return

The E-Commerce Supply Chain

Supply chain management is a key value chain composed of:

Demand planning

Supply planning

Demand fulfillment

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Supply Chain Management

The E-Commerce Supply Chain

E-commerce supply chain management allows businesses an opportunity to achieve:

Increased revenues and decreased costs

Improved customer satisfaction

Inventory reduction across the supply chain

SCM – some definitions

Supply chain management (SCM) The coordination of all supply activities of an organization from its suppliers and partners to its customers.

Upstream supply chain Transactions between an organization and its suppliers and intermediaries, equivalent to buy-side e-commerce.

Downstream supply chain Transactions between an organization and its customers and intermediaries, equivalent to sell-side e-commerce.

Members of the supply chain (a) simplified view (b) including intermediaries

A typical supply chain (an example from the B2B company)

Push and pull approaches to supply chain management

Push and pull approaches to supply chain management

Two alternative models of the value chain.

(a) traditional value chain model, (b) revised value chain model

A typical IS infrastructure for supply chain management

 A typical IS infrastructure for supply chain management

Alternative strategies for modification of the e-business supply chain

Alternative strategies for modification of the e-business supply chain

E Commerce-SCM Models

B2B E-Commerce

Business to Business (B2B) e-commerce – when a business sells products and services to customers who are primarily other businesses:

Where all the e-commerce money is Basically, it’s about businesses doing business with other businesses Supply chain management is a big part of B2B e-commerce B2B take full advantage of e-commerce by creating and using e-

marketplaces E-Marketplaces are virtual marketplaces where companies buy and sell products

to each other, share information, and perform other important activities This is one of the fastest growing trends in the B2B e-commerce model

Example: A firm selling car components to a car manufacturer

B2C E-CommerceBusiness to Consumer (B2C) e-commerce – when a

business sells products and services to customers who are primarily individuals.

B2C is the glitzy e-commerce like iTunes, Amazon, eBay, etc Focused on consumer items – books, music, computers, etc Consumers interact very differently with the web than in the

B2B e-commerce model Consumers surf around the web evaluating products and services

until they eventually choose one site from which to make a purchase Businesses prefer to enter into long term partnerships with other

partnerships in the B2B model, but consumers are more fickle and purchase the same types of products from many different sites

The B2C model is a very cut-throat environment with many different competitors trying to drive down costs

Amazon Supply chain

Amazon : Inventory flow

http://www.youtube.com/watch?v=zknLfU7GJIw

C2B E-Commerce

Consumer to Business (C2B) e-commerce – when an individual sells products and services to a business

True economic inversion of the B2C model In B2C, demand is driven by the consumer and supply driven by the business In C2B, this is reversed – with business driving demand, and consumers driving

supply

Fotolia is a good example (www.fotolia.com) There you can post photos and videos and businesses will pay you a

royalty to use them (if they like what you offer) You can also advertise businesses on your personal Web site (called an

affiliate program) and receive monies for visitors who jump from your site to the business’ Web sites Amazon pay royalties to individuals who advertise amazon on their site. Also opportunities here for good blogging web-sites

C2C E-Commerce

Consumer to Consumer (C2C) e-commerce – when an individual sells products and services to another individual.

You selling to another person (or the reverse) Usually occurs through an intermediary such as eBay

eBay is a hybrid of B2C and C2C It facilitates consumers (B2C) to sell products to each other (C2C)

Many C2C web sites don’t really support any sort of e-commerce (i.e. money changing hands for products and services)

Rather the facilitate people coming together with common interests www.Mp3fusion.net – people who share music, etc

Reverse Logistics

Reverse Logistics

THANK YOU

http://www.youtube.com/watch?v=h7tHKwYEZIk