The paper "E-Commerce in Transport & Logistics: Supply Chain Management" is a good example of business coursework. E-commerce is the term used to describe any business on the Internet. It can also outline the electrical sites like Comet UK that trades in televisions or Amazon UK that trades in items such as books. The two are E-commerce web sites. Supply chain management is the running of a network of linked businesses involved in the eventual provision of commodities and services parcels required by end-users. E-commerce has greatly affected the trend in all the activities in supply chain management.
E-commerce has particularly improved the revenue realized by the shipping industry and has assisted the firm in the industry to minimize its costs of operation. This report explains the impacts that e-commerce has in the shipping industry. It also describes the various areas in the supply chain management that e-commerce has enormously transformed. Introduction A production supply chain is described as the flow of physical goods and related information from the source to the end-user. The main supply chain activities include production planning, purchasing, materials management, distribution, customer service and sales forecasting.
These processes are significant to the success of any business activity concerning the producers, wholesalers and even the service providers. Electronic commerce and the Internet are essentially altering the nature of supply chains and re-describing how end-users view, choose, buy and use commodities and services. The consequence has been the emergence of new business-to-business supply chains that emphasize on the consumer rather than the product. They also offer customized commodities and services. Application of e-commerce has both the potential to complicate demand and supply operations and also the ability to manage the complicated transactions (Sriram & Ivancevich, 2001).
E-commerce has thus affected both the efficiency and effectiveness of supply chain management in the following areas/ways: Cost efficiency E-commerce allows transportation firms of all sizes to exchange cargo records electronically through the Internet. E-commerce assists shippers, shipment forwarders and trucking companies to streamline records and documents handling without necessarily incurring the monetary and time expenses common with the traditional records and documents delivery systems. Through the use of e-commerce, firms can minimize costs, enhance data accuracy, streamline business transactions, enhance business cycles and improve service delivery.
Ocean transporters and their collaborating partners can trade bill of lading instructions, shipment invoices, and the status of the transporting containers, motor carrier consignment instructions and other records with enhanced accuracy and efficiency by doing away with the need to review or re-format record. E-commerce, in this case, is the most effective method because the only tools required are a personal computer and Internet connection (Mrphy & Daley, 2002). Changes in the distribution system E-commerce offers an opportunity for business transactions to be executed in the most possible flexible manner.
It allows flexibility in managing the complicated means in which commodities and information move between businesses, their producers or manufacturers and the customers. E-commerce closes the gap between clients and distribution centers. Clients can manage the ever-expanding complex movement of commodities and information through the system of the supply chain (Halldorsson, Herbert & Tage, 2003).
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