How does Supply Chain Management influence eCommerce?

Supply Chain Management (SCM) refers to all the maneuvers between procurement, production, inventories, distribution and deliveries of products and services to customers. eCommerce is not just about business and transaction on the Internet, rather a tricky maneuver of SCM at all operation levels. In this blog let us delve a little to understand the effect SCM has over eCommerce.

Supply Chain Management – A Sneak Peak

A sneak peek into the future shows a vast eCommerce development of Service Chains in comparison with the Product Chain. Products are very important, but at the same time, after the product is sold to a Customer, the pre- and post – sales Service is what helps the company in retaining the Customer. Whatever be the product, Customer retention is possible highly only by good Services.

Another future trend is that Supply Chains have to cater the base of the Pyramid as well. Professor C.K. Prahalad’s book “The Fortune at the Bottom of the Pyramid” points out the market potential of the five plus billion people around the world, whose income is less than $2000 a year. Better for companies because they are consumable and durable sectors. In particular, create products and associated supply chains to support the products that will cater to this market segment.

Read also: Keep Touch with your Customers through Mobile eCommerce

Knowledge work in supply chains

Yet another forecast – Knowledge Work and Workers will become global in nature. Knowledge work in supply chains today accounts for approximately 40 percent of the total labor hours spent. Much of this work deals with complex analytics, planning, procurement processing, and provision of services. This nature of the work, the need for multi-language support. Also, the associated local complexities of the different geographies being served will necessitate the seamless globalization of supply chain knowledge work.

We have come across many certifications like the CPAs. Forecast is that, SCM becomes a Certification, and it has been accredited by the Universities for all Graduations. However, in most cases these programs either focus on the basics of SCM or on a specific activity such as import/export. We believe that a fundamental shift will occur in the normalized delivery, content served, and certifications of supply chain professionals. Many other professions like accounting and engineering require national board examinations as well as continuing professional education.

Product Clock Speeds

Product Clock Speeds will be the yardstick that will determine the Number and Nature of Supply Chains. This “fast clockspeed” lifecycle is becoming more the norm than the exception. The days of the steady and static product catalog is past; thinking otherwise, in fact, is a recipe for disaster. However, we continue to find companies using a single supply chain approach to service all segments irrespective of the time constraints.

Technology to support SCM will primarily be “on tap.” SaaS (Software as a Service) is gaining mainstream attention. We contend that most if not all supply chain technologies by 2020 has been delivered via this method—or “on tap.”

Conclusion:

Leaders will leverage social media in a closed loop feedback process. Social media data is everywhere today. The winning companies are able to receive, process and act on the data that provides them via social media.

Source: How does Supply Chain Management Influence eCommerce?