Effect Of E-Business On Supply Chain Management

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Effect of E-business and on firm’s Supply Chain


E-business is computing and communication through internet which has enabled a business to execute front end backend processes of a business. In today’s scenario it has become a key enabler to drive the supply chain integration. Business can use internet to
• Gain global visibility across their extended network of trading partners
• Help them respond quickly to a range of variables from customer demand to shortages of resources.
By adopting e-business methods in the supply chain pattern we can achieve goals of reduced cost increased flexibility, faster response times more efficiently and effectively.
In the past decade, electronic business has increased demand and attention from
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According to them e-business was a disruptive technology which transformed business processes through the use of internet. They also cited internet as very safe and flexible according to the needs and requirements of organization with the help of which the company can manage their core business processes easily. They also explained how an efficient a business practice can be made by proper collaboration between stakeholders, suppliers, buyers and associated partners.

2. Background and objective of study Before we go ahead with the relationship analysis of supply chain management and e-business; let us define both the terms separately.
Supply chain management is defined as more than more organizations directly involved in the flow of products,services,finances, and information from the source to the the end customer.
It has the end to end view as it contains all the elements from acquiring raw materials from a particular product or service to final consumption of the product or delivery. I also includes recycling of the finished product initiated by the end user.

Supply chain management comprises of all the methods, systems and leaderships that continuously improves an organization’s integrated process for product and service
• Design
• Purchasing
• Inventory management
• Planning and scheduling
• Logistics
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3. Influence of e-business on supply chain management of a business

The key issues within the supply chain that are related to the impacts of e-business on supply chain management.

These are some typical points when we talk about dependency between e-business and supply chain management:

• Some of the activities in e-business are dependent on more than one supply chain activities but some are silos and are handled separately.

• The changes made by e-commerce in the business of supply chain could be huge or a very small measure. This helps in forming a competitive advantage.

• The benefits of the e-business is very huge in number but also depends on the environmental and organizational behavior.

The benefits of e-business on supply chain management is so wide .It’s divided into several categories:

a) Transactional benefits
Transactional benefits are
• Communications efficiency: This refers to cost savings in

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