Role of E-Commerce in Supply Chain Management

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E-commerce simplifies supply chain management.
E-commerce simplifies supply chain management. (Image: warehouse image by Niki from Fotolia.com)

Over the years, e-commerce has been playing an increasing role in supply chain management. Taking advantage of e-commerce can allow a business to reduce processes and costs as well as to open distribution channels.

Information Source

Businesses can use e-commerce to provide customers with product and related information in a timely and efficient manner. It can be useful in providing news, updates, instructions and upgrades.

Distribution

E-commerce provides businesses with a new distribution channel to get products to the end users. E-commerce can also be used to reduce the number of layers between the company and its customers. It allows for a business to sell directly to its target market, reducing costs and increasing efficiency.

Inventory

Inventory management is simplified through reporting systems connected to the shopping cart software and allows for businesses to carry more items than with a brick-and-mortar store. E-commerce also allows for additional efficiency with just-in-time inventory processes or print-on-demand.

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