Question

Need help to answer the below question, please.

What are the effects of E-business on supply chain management practice? Explain how e-business strategies can help in better inventory and service management integration. Provide at least 3 Information technology applications in the SCM.

can anyone explain bit elaborately, please.

Answer 1

The e-business impacts the supply chain management practice through various ways:

a. cost efficiency- The cargo companies irrespective of their sizes exchanges the cargo related documents over the internet and this is facilitated by e-commerce. The process is far better than the traditional delivery systems and this enables the trucking firms, fright forwarders and shippers to handle the document without any time and monetary investment.

b. Distribution systems gets changed- the complex movement of the goods are handled by the e-commerce and this gives businesses a form of flexibility. It is important to mention that e-business forms a link between the distribution centers and customers.

Better service and inventory management integration is achieved through the formulation of plans which includes purchasing equipment & machinery and inventory accumulation. This is especially done to decrease or limit the purchases made that are not necessary. It is important to mention that unnecessary purchases often have tax implications and is associated with high expenditures.

The applications of information technology in supply chain management are as follows:

a. Control over the process of production increases

b. Inventory management improves

c. Collaboration between the supply chain partners increases

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