Supply Chain Management in E-Business

Taherdoost, Hamed

doi:10.1007/978-3-031-39626-7_7

Hamed Taherdoost^3,4

Part of the book series: EAI/Springer Innovations in Communication and Computing ((EAISICC))

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Abstract

Supply chain management (SCM) controls the flow of goods and services from the start of manufacturing until the finished product is delivered to the consumer. In today’s fast-paced corporate climate, the necessity of SCM for the success of e-business has expanded. The rise of e-commerce has disrupted the old supply chain paradigm, bringing new opportunities and difficulties. Understanding the key SCM components and how technology may be utilized to improve the process is critical for every e-business’s success. This chapter is primarily concerned with SCM in e-business contexts. Because of the growing importance of e-commerce, the integration and coordination of various SCM components have gained prominence in this environment. This chapter focuses on how technology can improve the efficacy and efficiency of SCM operations. Furthermore, the chapter discusses SCM challenges in e-business and potential solutions. By the end of this chapter, the reader will have a better knowledge of the function of SCM in e-business and the essential elements impacting its performance.

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References

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Authors and Affiliations

Department of Arts, Communications and Social Sciences, University Canada West, Vancouver, BC, Canada
Hamed Taherdoost
Hamta Business Corporation, Vancouver, BC, Canada
Hamed Taherdoost

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Hamed Taherdoost
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Appendices

Summary

Definition of Supply Chain Management in E-Business

Supply chain management (SCM) in e-business refers to coordinating and integrating activities involved in the flow of products, services, information, and finances within a digital business environment.
It encompasses the entire lifecycle of a product or service, from sourcing raw materials to delivering the final product to customers using electronic technologies and online platforms.

Components of Supply Chain Management in E-Business

Procurement: The process of sourcing and purchasing raw materials, components, and finished goods from suppliers, which involves online procurement platforms and digital payment systems
Inventory Management: Efficiently managing and tracking stock levels and ensuring the availability of products through online inventory management systems
Warehousing and Distribution: Storing, organizing, and distributing products through online fulfillment centers and logistics networks
Transportation and Logistics: Optimizing the movement of goods through digital tracking, real-time visibility, and efficient routing systems
Demand Planning and Forecasting: Utilizing data analytics and online tools to predict customer demand and plan inventory levels accordingly
Order Fulfillment and Customer Service: Ensuring timely order processing, accurate order fulfillment, and excellent customer service through online platforms and automated systems
Returns Management: Managing product returns and exchanges efficiently through online return portals and reverse logistics processes

Integration of Technology in Supply Chain Management in E-Business

E-commerce Platforms: Integration of online marketplaces and e-commerce websites to facilitate seamless transactions, enable product catalog management, and provide customer support
Enterprise Resource Planning (ERP) Systems: Utilizing ERP software to integrate and manage various business processes, including procurement, inventory management, and order fulfillment
Supply Chain Visibility Tools: Implementing online tools and systems that provide real-time visibility into the supply chain, allowing stakeholders to track and monitor inventory, shipments, and delivery status
Internet of Things (IoT): Using IoT devices and sensors to collect and share data throughout the supply chain, enabling better monitoring of inventory levels, product quality, and shipment conditions
Artificial Intelligence (AI) and Machine Learning (ML): Applying AI and ML algorithms to analyze data, optimize supply chain operations, and make accurate demand forecasts
Blockchain Technology: Leveraging blockchain for secure and transparent supply chain transactions, traceability, and verification of product authenticity

Challenges and Solutions in Supply Chain Management in E-Business

Integration Complexity: Overcoming challenges related to integrating different software systems, platforms, and stakeholders in the digital supply chain
Cybersecurity Risks: Addressing security threats and vulnerabilities in e-business supply chains to protect sensitive data, prevent data breaches, and ensure secure transactions
Scalability and Flexibility: Adapting the supply chain to accommodate fluctuations in demand, changing customer preferences, and scaling operations to meet growth requirements
Data Management and Analytics: Establishing robust data management practices and utilizing advanced analytics tools to extract meaningful insights for informed decision-making
Collaboration and Communication: Enhancing collaboration and communication among supply chain partners through online platforms, shared data, and real-time information exchange
Sustainability and Ethical Considerations: Addressing environmental concerns, promoting responsible sourcing and production, and ensuring ethical practices throughout the e-business supply chain

Case Study

Company XYZ is an online retailer that carries a wide selection of products. They collaborate with multiple suppliers and logistical partners to fulfill requests for a global clientele. The company aims to establish a streamlined and efficient supply chain management system to ensure on-time delivery of high-quality products. However, they are experiencing supply chain management issues and are seeking to improve their operations.

1.
Which factors should Company XYZ prioritize when selecting e-business suppliers to maintain a stable and effective supply chain?
2.
How can Company XYZ effectively manage inventory levels in its e-commerce operation to avoid stockouts and transport costs while meeting customer demand?
3.
How can Company XYZ improve its e-commerce logistics operations, focusing on increasing order fulfillment and delivery speed?
4.
How can company XYZ use technology, such as RFID or blockchain, to enhance supply chain visibility and traceability, resulting in greater customer satisfaction?
5.
What challenges might Company XYZ face in maintaining product quality control in their e-commerce, and what steps can they take to ensure quality consistency throughout their supply chain?

Discussion

1.
How is supply chain management different in the context of e-business compared to traditional businesses?
2.
What are some key benefits of effective supply chain management for e-businesses?
3.
How can e-businesses leverage supply chain management to gain a competitive advantage?
4.
How does sourcing impact the overall supply chain management process for e-businesses?
5.
What role does inventory management play in supply chain management for e-businesses?
6.
What are some best practices for optimizing logistics in the context of e-business supply chain management?
7.
How can technology be used to enhance supply chain management in e-businesses?
8.
What are some examples of supply chain management technologies and how do they improve efficiency and effectiveness?
9.
How can e-businesses ensure that the technology they use in supply chain management is secure and reliable?
10.
What are some common challenges that e-businesses face in supply chain management and how can they be addressed?
11.
How can e-businesses ensure quality control throughout the supply chain management process?
12.
What strategies can e-businesses use to select the best suppliers and vendors for their supply chain management needs?

Multiple-Choice Question

1.
Supply chain management in e-business refers to:
1. (a)
  Managing the flow of goods and services in physical stores
2. (b)
  Managing the flow of goods and services in online businesses
3. (c)
  Managing the flow of information within a company
4. (d)
  Managing customer relationships in online businesses
2.
Effective supply chain management is important for e-businesses because it:
1. (a)
  Increases customer satisfaction
2. (b)
  Reduces shipping costs
3. (c)
  Improves product design
4. (d)
  Enhances employee morale
3.
Which of the following is a key component of supply chain management in e-business?
1. (a)
  Marketing strategy
2. (b)
  Financial planning
3. (c)
  Sourcing
4. (d)
  Human resources management
4.
Inventory management is an essential component of supply chain management in e-business. It involves:
1. (a)
  Tracking and monitoring customer behavior
2. (b)
  Determining the best pricing strategies
3. (c)
  Managing stock levels and replenishment
4. (d)
  Analyzing competitor performance
5.
Logistics in supply chain management for e-businesses refers to:
1. (a)
  Managing the physical flow of goods and services
2. (b)
  Implementing effective advertising campaigns
3. (c)
  Conducting market research for new product development
4. (d)
  Analyzing financial statements for investment decisions
6.
Which of the following is an example of supply chain management technology?
1. (a)
  Social media marketing
2. (b)
  Virtual reality simulations
3. (c)
  Radio-frequency identification (RFID)
4. (d)
  Customer relationship management (CRM) software
7.
The use of technology in supply chain management can improve efficiency by:
1. (a)
  Reducing the need for human labor
2. (b)
  Increasing product prices
3. (c)
  Creating additional supply chain complexities
4. (d)
  Limiting communication with suppliers
8.
Blockchain technology can be utilized in supply chain management to:
1. (a)
  Ensure product quality control
2. (b)
  Enhance employee training programs
3. (c)
  Increase market research capabilities
4. (d)
  Improve customer relationship management
9.
Challenges in supply chain management in e-business can include:
1. (a)
  Lack of Internet connectivity
2. (b)
  Excessive product demand
3. (c)
  Inefficient advertising campaigns
4. (d)
  Supplier selection difficulties
10.
One strategy for resolving supply chain management challenges in e-businesses is:
1. (a)
  Implementing regular quality control checks
2. (b)
  Reducing product variety and options
3. (c)
  Increasing shipping times
4. (d)
  Ignoring customer feedback
11.
Which of the following is a solution for improving supply chain management in e-businesses?
1. (a)
  Limiting supplier partnerships
2. (b)
  Centralizing all inventory in one location
3. (c)
  Automating order fulfillment processes
4. (d)
  Avoiding technology integration
12.
Effective sourcing in supply chain management involves:
1. (a)
  Reducing customer support services
2. (b)
  Implementing strict return policies
3. (c)
  Selecting reliable suppliers
4. (d)
  Increasing product prices
13.
The integration of technology in supply chain management can lead to:
1. (a)
  Increased shipping delays
2. (b)
  Higher transportation costs
3. (c)
  Improved inventory accuracy
4. (d)
  Reduced customer satisfaction
14.
The main goal of supply chain management in e-business is to:
1. (a)
  Maximize profit margins
2. (b)
  Minimize customer loyalty
3. (c)
  Minimize supplier partnerships
4. (d)
  Optimize the flow of goods and services
15.
Which of the following is not a benefit of effective supply chain management in e-businesses?
1. (a)
  Improved customer satisfaction
2. (b)
  Reduced operational costs
3. (c)
  Enhanced product quality
4. (d)
  Increased employee turnover

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Taherdoost, H. (2023). Supply Chain Management in E-Business. In: E-Business Essentials. EAI/Springer Innovations in Communication and Computing. Springer, Cham. https://doi.org/10.1007/978-3-031-39626-7_7

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DOI: https://doi.org/10.1007/978-3-031-39626-7_7
Published: 05 September 2023
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-39625-0
Online ISBN: 978-3-031-39626-7
eBook Packages: Intelligent Technologies and RoboticsIntelligent Technologies and Robotics (R0)

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