Page 65 - E-Commerce

64

Now the internet has revolutionized supply chain management. There are at least five
roles the internet has played when it comes to this. Below are the different areas in
which this has happened:

Inventory Management

Definitely one aspect of supply chains that is most costly is inventory management.
And, the internet has made it possible for business firms to quickly set up EDI
information programs with their clients. Before the emergence of the internet, EDI will
usually take a longer time to be implemented in a supply chain. Then, every channel
member had to massively invest in software, equipment, as well as training before EDI

systems could be made operational.

Purchasing

The internet has also made it possible for cost associated with purchasing to be
reduced. In the United States, business firms have been able to make use of the internet
to streamline the purchasing function. With it there is reduction in paper-flows as well
as order-cycle times- the time it takes for purchased order to be delivered. Today, face-
to-face negotiations, which might be considered the order of the day in the past, are
not frequently used as bargaining, re-negotiations, term and price agreements, etc. can

now be done via the internet.

Transportation

Transport management is probably the most popular use of the internet in supply
chains. This is so important for any business since the tracking of shipments to regional
depots will provide the firm with data that shows how reliable or otherwise the
performance of its carriers is, making it possible for transport managers to confirm
whether their motor carriers are meeting the promised arrival time. And, it also enables
them to inform carriers about shipment delays as this occurs rather than wait for days
or even longer before informing them.

Order processing

This critical role of order processing is one that the internet has helped to dramatically
reduce costs. And, reduction in paperwork is a major item of this cost saving when
compared to conventional practices. Okay another major benefit that the internet has
bestowed on this process is the increase in speed with which order processing is now