Monday, 23 January 2017

Why Supply Chain Management is a Major Concern of eBusiness

 
The primary focus for supply chain integration for eBusiness is cost based rather than customer service focused.  The main aim is to reduce costs out of the chain for all businesses, regardless of size of the sector.  Research also discovered that customers were putting pressure on suppliers to get the price of the supply chain down as much as possible.

Failing to Support Customer Service
·         A five stage evolutionary process has been identified when e-businesses adopt supply chain strategies. The five stages show the improvements in the supply chain, paying particular attention to customer facing processes, followed by the internal operations and ending with supplier facing operations.   Customer access is improved because of the CRM support and sales order automation, but customer service is lacking as an organization and suppliers need to be aligned to create a suitable fulfillment capacity. By failing to do so, the supply chain is not efficient.

E-Strategy
·         The commonly used e-strategy is top down. CEOs deliver motivation for eBusiness adoption but processes and implementation is passed to cross functional teams.  There are also lots of initiatives that are not coordinated in the organisation and poor project management.

E-Procurement
·         Many organisations are adopting e-procurement but not many see it as a strategic function. E-procurement has many cost benefits but it needs to be fully understood for the cost benefits to be experienced in the organisation. E-procurement needs a strategic approach to gain the most advantages.

Supplier Capability and Integration
·         Integrating internal and supplier systems is one of the main barriers to integrating the supply chain.  Supplier readiness and capability is found by most organisations to be a major constraint.

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