Based on the characteristics identified in the study, it was possible to conclude that an e-commerce

supply chain varies according to the product and segment in focus. This fact leads us to consider that it is
not possible to establish a fixed model for the entire operations network; on the contrary, it is necessary to
develop segmented strategies for each supply chain and specific groups of products.

E-commerce companies that adopt differentiated supply chain strategies for each product may
possibly acquire advantages over those companies that do not operate in this manner. It is important to
consider that for each product there is a different way of reaching the customer. This could be better
established if market research were made to analyze the typical priorities of each specific segment of the
consumer market in e-commerce.

E-commerce increase demand and product variety year by year, so it is important that all supply
chain follow this scenario acting in the right context, for instance whether products are commodities and
had short profit margin the companies need adopt lean supply chain strategies to be competitive.

We believe that this paper reached the objective to show a methodology to identify the right
supply chain strategy. As the focus was the internet scenario we presented a case of study using a e-
commerce retail in Brazil. The purpose of case of study was illustrated the methodology, next step of
research is evaluated different companies in this segment to determine the scope of the methodology
developed here.

One limitation is that the methodology study focuses on only two e-commerce segment; future
studies may go further in refining the proposed framework for other segments

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V. SOLUTION OF SUPPLY CHAIN MANAGEMENT UNDER ECOMMERCE ENVIRONMENT

A. Strengthen the Idea of Supply Chain Management, Realize the Management Mode of
‘Horizontal Integration’

Supply chain’s basic require for enterprise are core business and informational efficiency, and use
enterprise external resource to quickly response to market require. Enterprise should try hard to change to
the supply chain management model of horizontal integration, take advantage of modern information
technology and integrated business process, coordinate the effective and efficient flow of information
flow, fund flow and logistics in the supply chain management, the synergetic business partnership with
suppliers and customers. Information network technology makes an organic bond with enterprise internal
and different parts in the supply chain management, continuous improve the agility and flexibility in the
supply chain management system.
B. Improve Confidential Relation Between Supply Chain Members, Realize All-Win in Different
Part of Supply Chain

In supply chain system, it requires that all enterprise information must be transparent, and the
resource must be sharing, but in reality, confidence level between enterprises is very hard to be
symmetrical. The supply chain management’s aim under e-commerce environment is find balance
between improving users service level and reducing the total logistics cost, maximum give play to the
entire strength in supply chain, in order to reach the maximum benefit of the whole supply chain. E-
commerce based on information technology contributes to the enterprises to span the traditional
organizational form, in a manner that maximum the network to connect the customers, retailers,
manufacturers, suppliers and employees together, continuously promote the relationships between
different supply chain members, reintegration the whole value supply chain, let supply and requisitioning
parties get most useful market information in the most right time, make all the enterprise in the supply
chain to reach win-win.

C. Enhance Establishment Construction of Information Network, Realize Information Networking

of Supply Chain Management

One important content of enterprise management strategy is formulating an information

transaction platform which is applied to supply chain operation, use information technology to improve
the information precision and flow rate in the whole supply chain. Therefore, enhancing the development
of information network facilities, accelerating extending intensity of e-commerce application, building
intranet internal the enterprise and extranet outside the enterprise, making the inside and outside of the
supply chain to be an entirety and letting the information be sharing in the supply chain become urgent
affairs in the construction of information networking in the supply chain. Supply chain information
support platform based on information changing technology and network technology will effectively
realize data exchange and information sharing between different departments of enterprise, provide
information technology support for supply chain management.

D. Integrate E-Commerce and Supply Chain Management, form Integrated supply Chain
Management [3]
 With the spread and development of e-commerce, supply chain management is now developing in
the direction of high level integrated. In order to promptly and quickly adjust to the change of
environment, supply chain need continue improve agility and flexibility of system coordinate. Integrated
supply chain management can effectively solve this problem. The aim of integrated supply chain
management is to further optimize the function of supply chain management system, ensure every part
and every function in the supply chain can realize best match and perfect harmony, and both of them to
ensure the maximum benefit of the whole supply chain. It must use the lowest cost and the fastest speed
to produce the best product, satisfy the customers’ needs quickly, enhance reaction capacity and service
rate of the enterprise, in the process of integrating external supply chain, management should pursue the
stable relationship among product, transaction, organization, enterprise culture and many other aspects,
keep certain consistency to realize sharing of information and benefits.

VI. CONCLUSION

Nowadays, realize effective supply chain management has already becoming the strategy choice to
develop valid compete, the fast developed e-commerce provide important means for effective operational
supply chain management. It use the network platform, maximum relate the customers, retailers,
manufactures, suppliers and employers, improve greatly the level of enterprise management, let both
supply and demand can receive market information in a very short time, improve the product rate and
economic benefit, reduce the production cost and fasten the products circulate, enhance the core
competitive force of enterprise. With the spread and improve of e-commerce technology, it will surely
push the further development of supply chain management, and the enterprise who can realize and solve
the problems with it can preempt market opportunities.

===============================================

4. Conclusions

This paper talks about the E-commerce logistics in supply chain management from a practice
perspective. Due to the fast development and large influence of E-commerce, logistics has been greatly
changed compared with several decades ago. This paper highlights the logisitcs models and supporting
techniques which have improved the E-commerce logistics significantly. Worldwide implementations
such as North America, Europe, and Asia Pacific are reported. Typical Ecommerce companies are
reviewed in this paper aiming to get the opportunities and future perspectives which may be used for
guiding practitioners and academia when contemplating Ecommerce logistics and supply chain
management in the near future.

For the practice view of E-commerce logistics, the IT technology plays an essential role in
improving the efficiency and effectiveness of supply chain management. Future technologies like Internet
of Things (IoT), Big Data Analytics, and Cloud Computing would be possibly adopted to enhance the E-
commerce logistics in terms of system level, operational level, and decision-making level that may be
realtime and intelligent in the next decade.

================================

Conclusion

As Web technologies evolve, e-commerce has become a powerful and compelling enabler of
supply chain integration that across a wide range of industries. The aspects of speed and connectivity of
Internet technology have changed the nature of conducting business. Information visibility is achieved
through connectivity among trading partners, therefore, supply chain can be better managed. On the other
hand, speed and connectivity make market dynamic and uncertain. Under such circumstance, forming
strategic alliance, managing relationship of trading partners and having collaborative relationship through
supply chain are particularly imperative.

As the trend of global commerce continues, we will see more and more companies to adopt B2B
business model in the near future. Integrating e-commerce into the existing supply chain is not only
necessary for attaining companies’ competitive advantages, but also for companies’ survival in the
globally competitive environment. Overall speaking, incorporating e-commerce into supply chain process
could achieve the following advantages: reducing purchasing cycle time, cutting transaction cost,
decreasing purchasing cost through the more competitive electronic marketplaces, enhancing the
collaborations among suppliers and buyers through collaborative software, lowering inventory, fulfilling
customers’ demand faster, and boosting market access.

================================

E-commerce is already having a significant impact on supply chain management in some

companies. In this paper, I have outlined how that impact will increase over time as companies adopt e-
commerce solutions more broadly and increasingly collaborate between companies and across countries.
The broadening of e-commerce will be a gradual process, phased in over time; it will involve a lot of hard
work. The benefits of supply chain improvements will be considerable, however, representing 5–15 per
cent of overall supply chain costs. Leading supply chain operators are likely to achieve collaboration with
their key value chain partners far more speedily and effectively than their slower competitors. Overall, we
can expect a ten-year period of fundamental restructuring of the way that companies collaborate and
synchronize their supply chains. The benefits of cost savings and performance improvements will accrue
to the companies that are the best at harnessing e-commerce solutions.

======================================

Facilitating Supply Chain Management with E-Commerce

To efficiently manage the supply chain, all functions and entities of the supply chain must be fully
integrated. This integration can be made possible through the use of communication networks, which
allow collaboration among the various entities and functions of the supply chain. This communication
network is the heart of e-business.

The Internet is a collection of public and private communication network that links businesses to
consumers and businesses to businesses. The speed and ease of the use of Internet can facilitate the flow
of information from the retailer to the customer and vice versa, which can result in cost reductions
associated with order processing and customer service. Another valuable network in e-business is a
company intranet, which is based on Internet technology, but is used primarily within a single company or
organization. The intranet allows internal users to share information with each other and may span
multiple locations throughout the world. The intranet of e-business can be a very valuable tool that can
lead to significant cost reductions in internal business processes because of the ease of accessing
information from various functions within the organization. Intranets can also aid in the facilitating of the
supply chain from retailer to customer. Marketing and sales, accounting and finance, and customer service
are all linked together through the company intranet. To facilitate all the other functions of the supply
chain, two primary technologies of e-business are used, namely, extranets and electronic data interchange
(EDI). Extranets are similar to intranets, but instead of solely being internal to the company, the - extranet
extends the company’s intranet to other companies and organizations, such as suppliers, manufacturers,
and distributors. EDI is a popular technology used to transfer information over the extranet. EDI is a key
technology of e-business because it allows “computer-to-computer” - exchange of standard transaction
documents between two organizations over an extranet.

Managerial Challenges of Implementing E-Business

With all the benefits associated with implementing e-business to facilitate supply chain
management, one would think companies would jump at the chance to reap the benefits of e-business.
There are many managerial -challenges associated with implementing e-business and its components.
Implementing e-business can entail the use of considerable amount of capital resources. Capital -outlays
and resources are made to cover the initial investment, hardware and software requirements, salaries of
information system specialists, and maintenance and updating costs of the system. These costs can be
considerable and may deter some companies from implementing e-business. Today’s customers expect
orders to be filled much more quickly than in the past. Many distribution centers and warehouses, used to
dealing with pallet-size orders, are not set up for dealing with a lot of single-item or open-case shipping.

Tips to bear in mind while evaluating e-SCM initiative

Get Perspective: One should foresee the business as a whole including its current strategy and
where it wants to go. Supply chain strategy is increasingly being integrated with overall corporate
strategy.

Don’t Underestimate Learning Costs: The cost of training people to use new software should
not be underestimated. Sending information around the world takes lesser time than it takes to get into
someone’s mind.

Link to existing architecture: Supply chain applications must link to existing enterprise resource
planning applications. ERP serves as the nerve center of the organization. Ideally, it should be a single
point of visibility for inventory and order taking.

Traditional channels of supply chain management:

Moder channels n of supply chain management

Conclusion

By implementing networked and integrated supply-chain management processes, companies can

reduce their inventory and associated costs, make better real-time forecasting decisions, speed the
delivery of products and services, streamline the payment cycle, increase revenues, and improve service.
Today’s technology driven supply chain also enables customers to manage their own buying experiences
and increase coordination and connectivity among supply partners.

==================================

4 CONCLUSION

In conclusion it can be said, that establishing an e-commerce effectively requires a lot of time an
effort from a business owner. Online commerce is suitable both for those who are trying themselves as an
entrepreneur for the first time, and for those who already have some business experience behind them.
Even though this process is creative and differs for everyone, the theoretical background can be used as a
base for building up a strong online presence. Since the popularity of online business has been rapidly
growing, it is important to stay up-to-date with all the modernized knowledge and terminology when
trying to enter this market. There are many procedures that should be implemented in order to make an e-
commerce work and the biggest difficulty comes from the interconnection of the processes. There are few
steps that nowadays can be either simplified or completely taken care of by the information technologies,
so the automatization of online business might be beneficial. Each of the thesis chapters have their
significance and footprint in establishing the estore, and with an eye to avoid the potential problems in
future, many of them can be planned beforehand.

It is important to understand that launching the website doesn’t yet mean the money will start
flowing. If everything is done accordingly, it will take several years to start receiving the ROI. Business
requires constant investments and reevaluations: expanding the range, marketing, premises and personnel,
increasing volumes, changing the locations etc. Keeping up with trends, managing the logistics and IT
procedures, improving the communication with customers and suppliers - all of this has become engraved
into the holistic system of an e-commerce. Meaning, that the research and change for an e-commerce will
come at all times, even after it’s proper establishment. The theory is accessible for everyone and it is only
up for the company to ensure the prosperous realization of it.

============================

CHAPTER SEVEN: CONCLUSION

7.1 Summary of Findings

Supply chain efficiency has been critically assessed and analysed throughout the study, and
adequate results have been attained. The main focus of the study has been towards factors affecting the
supply chain efficiency of online fashion retailers in Pakistan, and challenges faced by managers with
regards to supply chain efficiency as well. There are various online fashion retailers operating in the
country of Pakistan, and the ones chosen through non-probability sampling techniques have been Saphire,
Junaid-Jamshed, LimeLight, Gul-Ahmed, and Sana Safinaz. These companies have been selected as the
fashion brands operating through an adequate online presence. 10 managers working in these brands have
been chosen and required information has been gathered from the use of online interviews. The results
have depicted that factors that significantly contribute to supply chain efficiency are skills and
qualifications of employees, technological advancement, training and development, integration of
business functions, and maintaining effective supplier relationship.

One of the other identified factors has been technological advancement. Attaining data from
interviews and secondary information from journal articles, reports, and books, it has become evident to
understand that technology plays an essential role in contributing towards supply chain efficiency. While
it has been identified and understood that human capital is of great worth to companies, it also needs to be
understood that the inculcation of technology has become extremely imperative in the modern-day
working environment. Most firms today have inclined towards technological advancements, and the ones
that are not able to do this adequately are exposed to the risks of not sustaining the market.

Another essential factor that has been identified to be contributing towards supply chain efficiency
has been training and development. With training and development, the employees working in the
company are provided with the opportunity to keep their skills updated and learn new aspects of work that
needs to be inculcated and implemented. Moreover, integration of business functions is equally effective,
allowing businesses the opportunity to maintain effective coordination and communication with each
department. With integration, a more holistic approach is formed towards attaining business objectives
and this makes it more feasible for organisations to deliver their required outcomes.

One last factor that has been regarded as significant in terms of contributing towards supply chain
efficiency is of maintaining supplier relationships. Today, the buying power of suppliers has increased
significantly. As there are more and more competitors entering the industry, suppliers have had a greater
opportunity to provide their materials and products in the market. Through better supplier relationships,
businesses are able to attain preference and priority in comparison to others, and better overall services
are provided to such organisations.
 Moreover, the significant challenges associated to supply chain efficiency have been identified to
be limited capital, resistance to change, lack of technology, limited skills and qualification of employees,
and lack of motivation. Limited capital has resulted in being a major barrier for the organisation in terms
of ensuring supply chain efficiency. To make sure that adequate supply chain efficiency is attained,
organisations require a certain amount of capital to inculcate in the business processes. This capital could
be utilised to automate business processes, carry out research and development, conduct supportive
activities (such as training and development), build better infrastructure, and much more Capital
requirement turns out to be one of the most critical factors that negatively affect supply chain efficiency,
and this challenge often becomes daunting for organisations to overcome. Firms often have difficulties in
generating investment and capital for work activities, as looking for feasible terms and conditions to raise
capital often becomes the major barrier. Even though companies have been considering and looking for
ways through which enough capital could be generated for work activities, the inability to generate
enough investment results in being a huge barrier to attain supply chain efficiency.

One of the other significant challenges has been identified to be resistance to change. Resistance
to change could lead to becoming one of the most difficult issues to resolve and overcome. As employees
have been identified to being the most imperative resource for organisations, their inability to change in
accordance with the business environment and requirements may become a huge challenge. The
resistance towards change occurs also because of not being willing to come out of the comfort zone or
attain training for new business aspects.

Lack of technology has been identified to be one of the other major challenges that are associated
to supply chain efficiency. While the significance of technology has been well identified, utilising it in the
best manner could be considered a huge barrier on the whole. Firms are often unable to make use of
technology and this is usually because of limited skills regarding usage of technology, lack of
infrastructure to implement technology, and many other factors. Even though these factors could be
extensive, the inability to have or implement a lack of technology significantly limits the overall
efficiency of businesses in terms of the supply chain.

Another challenge is of limited skills and qualification of employees. Employees are highly
imperative and play a vital role in contributing to the performance and efficiency of organisations.
Organisations that do not have ample skilled individuals may not be able to achieve and ensure optimum
outcomes even after having adequate technology. As individuals and human resources are some of the
most imperative and critical assets to any company, their skills are highly essential for ensuring supply
chain efficiency. Employees that are not rightly skilled may not be able to understand the evolving
requirements of the firm, or even respond properly to the training sessions provided for improved
learning.
 Lastly, lack of motivation is also a considerable element that becomes a huge challenge in supply
chain efficiency. Employees that are not motivated towards work do not remain engaged and interested in
their job. Due to lack of motivation, not only the performance of employees is reduced but they also
negatively contribute to the overall development of business culture. While the skills of employees are
one area of focus, lower motivation level results in being another huge challenge for businesses operating
in the industries. One of the reasons that have contributed to lower motivation has been the inculcation of
technology. As most of the work has become dependent upon automation, the need for an employee in
that organisation reduces. Moreover, the overall need for skilled employees in the industry has also
negatively impacted the behaviour of individuals and adversely affected the motivation level on the
whole.

7.2 Conclusion

There are various considerations that have to be made in online retailing in order to ensure that
effective implementation of it takes place and the objectives of the firm are attained in an adequate
manner. While supply chain efficiency is a critical and imperative factor for businesses in the
contemporary environment, it has become even more essential for firms involved in online retailing. As
many online businesses do not maintain a physical store and all their transactions are conducted directly
from their warehouses to the customers, the need to maintain effective supply chain management
increases evidently. By developing a better understanding of the factors contributing to supply chain
efficiency, companies would be able to better develop strategies and approaches through which the
desired objectives could be achieved.

It has been deduced from the findings that factors that significantly contribute to supply chain
efficiency are skills and qualifications of employees, technological advancement, training and
development, integration of business functions, and maintaining effective supplier relationship. While
these factors have been contributing to supply chain efficiency in the online fashion industry of Pakistan,
the result may vary if any other industry or country is being taken into consideration and analysed. The
supply chain has been identified to be playing an extremely vital role in the overall performance of the
organisation, and firms need to make sure that this business function is operated with utmost care and
focus by all means.

One single factor contributing to supply chain efficiency could not be pointed out that is solely
responsible for supply chain efficiency. Generalising the results attained from this study would not be
adequate, and the outcomes of this research could only be kept specific to the discussed case in the paper.
Businesses in the Pakistani fashion industry have been taken into keen consideration, and the data
collected from primary and secondary sources are relevant to the country and its working environment
only. Through the results attained from this study, the businesses in the fashion industry of Pakistan may
take immense usage, and this could allow them the opportunity to critically identify the areas on which
they may work and improve to augment performance and attain other set objectives.

Moreover, the evident challenges linked to supply chain efficiency has been limited capital,
resistance to change, lack of technology, limited skills and qualification of employees, and lack of
motivation. All of these challenges and barriers have been identified to be impacting the supply chain
efficiency of organisations. Companies that wish to attain efficiency in this business function must
critically identify and assess the aspects that are restricting businesses from attaining the required goals
and objectives. Once these challenges are identified, companies would be able to better understand ways
and techniques through which the identified issues could be overcome and resolved.

7.3 Limitations of the Study

Every research faces certain limitations, which lead to negatively impact the scope and
significance of the study being carried out. These limitations could be of any sort and category, which
causes some sort of barrier for the researcher and the outcomes of the research on the whole. While every
researcher is keen on making sure that these limitations could be avoided or overcome, certain limitations
still mostly take place and impact the research (Queiros et al, 2017). In this particular study, the two major
limitations faced were budget and time. The particular study had to be completed within a limited budget.
Accessing certain subscribed sources would have further allowed the researcher to gain access to more
information regarding the study area, in order to make it more critical. Further, the study had to be
completed within a given time frame and this also impacted the researcher from exploring more related
dynamics of the study or digging deeper into the problem area. Furthermore, another limitation that
impacted the research was COVID-19, which posed immense difficulties for the researcher to gather the
required primary information. Contacting and gathering information from managers become difficult for
the researcher, but this limitation was somehow mitigated through the use of online interviews being
conducted.

7.4 Future Research

With regards to the future area of research, the other related dynamics of supply chain
management could be explored such as value change analysis, supply chain requirements, and many
more. Further, the implications of supply chain efficiency could be explored in varied industries other
than fashion. As supply chain management is a complex business phenomenon and function, its
implications may vary in different industries, making it critical to identify and explore the results in this
regard. Also, this particular study focuses on the case of Pakistan only, and so various other countries
could be critically analysed in terms of supply chain management and identifying how their environment
may differ along with the implications.

============================================

concluSion

So far, however, we are still in the first stages of increasing the recognition of the potential of e-
business. Many organisations still lack an effective ICT infrastructure, which may organise, support and
facilitate the highly complex and often rapidly changing interfaces among the organisational entities and
disciplines involved in business processes. It is important to note, however, that organisation embarking
on an e-business processes. It is important to note, however, that organisation embarking on an e-business
initiative have to consider a sensible alignment of technology (as an enabler) with their business strategy
in order to be successful. The introduction of e-business might serve as a ‘Trogan Horse’ to enforce
necessary changes in organisational structures and processes (e.g. part standardisation or use of a single
coding system). E-business can drive new organisational forms (such as a virtual organisations), fufill
certain tasks in the inter-firm context and allow firms to improve supply chain processes. Therefore, e-
business has a vital role to play in integrated SCM.

===============================

IV. Conclusion

In order to have an efficient supply chain management e-commerce models of agency to agency
are effective. There are useful tools for data transfer of products and services between customers and
suppliers such as internet, web and electronic data transfer. Most companies have little knowledge and
skills about ECommerce. The real reason is the lack of understanding e-commerce and lack of adequate
knowledge on investment in this type of business. Governmental support is required for execution and
benefiting from ECommerceand finding internet services and web-site development. Right now there are
a lot of problems facing e-commerce, some of which are internet speed, lack of governmental support,
management of customer relations, safety and behavioral parts which should be considered at the time of
execution on agency to agency basis.Some supply chain innovations, such as moving fast-moving items
to a wareroom if store fulfillment is used, or using larger vehicles to complete more deliveries per trip,
offer greater opportunities for cost savings. For example, combining both the wareroom with larger
vehicles and assuming a doubling in volume over 5 years, the van delivery from the store model advances
from being marginally unprofitable to a profit margin of approximately 11% to 15%.

=============================

4. Conclusions

The Internet has radically altered the potential for international business development. The ways
in which e-commerce in SCM continue to evolve will be crucial for tax considerations. In terms of
theoretical considerations, the current situation must be regarded as unsatisfactory. First of all, there is
now a need for tax jurisdictions to take an international perspective as well as their customary national
one. While this is something that has been gradually developing with the increasing globalisation of
business, until the development of the Internet it has not been necessary for jurisdictions to the degree it is
now. Because of this, the theoretical considerations underlying imposition of taxation must likewise be
looked at internationally. It must be remembered that world-wide, business is in transition. Not everyone
is currently doing business via the Web, and while there is a move towards this, no one is as yet able to
say just how far this will develop. In terms of equity, not all entities are treated the same.

Cases may now come before the courts in an attempt to clarify how nebulous e-commerce in
SCM issues should be better defined and/or taxed, but almost certainly there would be more if new laws
were to be written from first prin- ciples to deal with e-commerce. The existing national systems will have
to remain and develop to deal with new situations, as they have always done, possibly by new statutes,
definitions, and case law acting as precedent. The latter particularly is a tested, traditional way of dealing
with issues about which no (clear) legislation exists.

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CHAPTER FIVE

SUMMERY, CONCLUSIONS AND RECOMMENDATIONS

5.1. Introduction

This chapter includes summary of the research findings, conclusions, recommendation and
suggestion for further research. The main objective of this study was to examine the role of ecommerce
application in the supply chain performance of selected online retail shops.
5.2 Summary

The study has detected the triggering factors of e-commerce adoption from perceived ease of use
and perceived usefulness perspectives. It also examined the role of ecommerce application for the
material flow, information flow and financial flow of selected online retail plat forms in Addis Ababa.

According to the respondents perceived usefulness has been described as more important factor to
the application of e-commerce for the online retails. The total mean value for perceived usefulness was
4.21 and standard deviation 0.95. The results have shown that most of the respondents agreed at higher
level that the perceived usefulness was triggering factor for the application of ecommerce.

The major objective examined was the role of e-commerce application for information flow,
financial flow and material flow on supply chain performance in the selected online retail shops. The
study revealed that relationships between e-commerce application and supply chain performance of online
retail shops. The results showed that there exist significant positive relationships between e-commerce
application for material flow, e-commerce application for financial flow, e-commerce application for
material flow and supply chain performance. Ecommerce application influences better customer service.
Customers are able to get good services in time limit expected. E-commerce enables online retail shops to
be more responsive than traditional shops. This helps firms to deliver products and services to customers
in expected time. Services are available to customers at their convenience. Retail shops with ecommerce
application provide wide scope of product and services than those that lack e-commerce application.
Retail shops create competitive advantages over others due to efficient and better customer services
provided to customer. Application of ecommerce has a great impact on flexibility of product type delivery
and time of delivery. Shop owners captured the advantage of working place flexibility. The research has
explained the strong positive relation between ecommerce application and supply chain responsiveness,
efficiency, customer service and flexibility. The results are similar with Alexander (2014) who argued
that e-commerce application can contribute to a firm‟s competitive advantage by providing efficiency and
responsiveness. Supply chain performance can potentially improve by building e-commerce application.
Ecommerce application significantly affects important dimensions of the retail service quality.

The study has shown significant positive roles of application of e-commerce in financial flow,
information flow and material flow for the improvement of supply chain performance. This means that
retail shops need to do better on adoption of e-commerce application for information flow, financial flow
and material flow of their supply chain. Firms which have e-commerce application serve well their
customers and are more flexible. The products and services delivery are efficient and the response to
customer‟s inquiry and order processing is quicker while adopting e-commerce. The findings are
consistent with Abdulaziz (2016) who indicated that e-commerce increases operational responsiveness,
flexibility and productivity of supply chain performance. According to Abdulaziz (2016) using advanced
e-commerce in the supply chain enables firms to respond timely and effectively to customer‟s needs and
requirements thus meeting customer expectations. It also reduces the lead time of orders and improves
service level of enterprises. Among the independent variables, application of e-commerce for Information
flow (β=.326, p<.000) was the one with the highest coefficient. Application of ecommerce for financial
flow (β=.219, p<.000) is the other significant positive relation with supply chain performance. The third
variable, application of e-commerce for material flow (β=.285, p<.008) has also a significant positive
relationship with the supply chain performance. Though application of e-commerce in general has a
positive significant relation with the supply chain dimensions like; responsiveness, flexibility, efficiency
and customer service it has reflected no significant relation with reliability and profitability of online
retails. This implies that in order to improve the performance of online retail shops, there is a need to
increase application of ecommerce for material flow, information flow and financial flow. The
profitability and reliability dimensions need to be seen with more additional variables and with other
factors to identify their relationships with application of ecommerce in a supply chain.

5.3 Conclusion

The study focused on the role of e-commerce application for information flow, e-commerce
application for financial flow and e-commerce application for material flow on supply chain performance
of online retail shops. According to the findings e-commerce application for financial flow is the most
significant predictor for supply chain performance and e commerce for information flow is the next
significant influencer. E-commerce for material flow has also a positive significant role in a supply chain
performance. Application of e-commerce has been found positive and significant influencer of efficiency,
responsiveness, flexibility and customer service of the online retail supply chain performance. However,
e-commerce application was found not to be a significant predictor of profitability and reliability of retail
shops.

The study concluded that perceived usefulness more triggering factor to adopt e-commerce than
perceived ease of use in the selected online retail platforms. The research concluded that Applications of
e-commerce for information flow, financial flow and Material flow were significant predictors of supply
chain performance of the online retail shops.

5.4 Recommendation
 Based on the study results it was concluded Application of e-commerce for information flow,
financial flow and material flow play significant role in supply chain performance of the online retail
shops. Therefore there should be increased awareness on the perceived usefulness and awareness to
increase perceived ease of use on the need to accept adoption of e-commerce on online retail platforms
because of its multidimensional benefits in enhancing supply chain performance. The online platforms
can increase their e-commerce developing dimensions by encouraging or supporting their partners to
adopt new technologies as well as by training and educating their shops administrators to become experts
and more disciplined on the sector to the higher level. The online Retail shops should provide efficient
and reliable delivery and high shopping services quality to their customers, by avoiding delays in order
processing, package delivery and short led time. This will increase their competitive advantage in the field
of online market and the e-commerce sector and hence helps providing customer satisfaction.

Even though there are some challenges to be considered and needed to be carefully managed like
security and reliability issues the advantage of e-commerce is much more positive for the improvement of
supply chain. Therefore the author recommends the members in a supply chain to use e-commerce
effectively to benefit from it. Many of business organizations can use the ecommerce to optimize the use
of their resources and get wider market access for their products and services.

To benefit from the positive impact of ecommerce in supply chain the government needs to give
attention on providing the infrastructure, policy and rules to manage it effectively. The government
should encourage and support banks and telecom companies since they are the critical role players in the
application of e-commerce. Moreover the government also needs to use the e-commerce application on its
services. Last but not list universities need to fill the gap of the skilled man power demand to benefit from
the sector more.

5.5 Future Research Recommendation

In the future it is recommended that to do vast and deep research on topics like the impact of
ecommerce on supply chain for different electronic business models like Business to Business (B2B),
Business to Consumers (B2C), Consumers to Consumers (C2C), Government to Business (G2B) and
other different e-commerce business models since the impact of ecommerce is very vast and has many
different aspects to be researched.

In this study it is found no significant relation between e-commerce application and profitability of
the online retail shops. Hence the author recommends the same issue to be researched in wider capacity
covering much more variables and sample size. It will be important to include a customer perspective in
future studies matching service user and provider perspectives. Furthermore the business to government
e-commerce B2G recommended to be researched since it is very significant in many ways affecting the
business and the whole society in a country. The role of e-commerce on the customs commission and
traders, the role of e-commerce in education, the role of e-commerce on import and export, and the role of
e-commerce in logistics development are some of recommended issues to be researched.

Finally e-commerce and its impact on supply chain require up-to-date data for decision makers,
other researchers or the government to consider the results and output data. Therefor to do frequent
researches according to the dynamism of the sector is highly recommended.

========================================

VIII. Conclusion

E-business has been a powerful and compelling enabler of supply chain integration across a wide
range of industries. As a result of e-business, many of the core supply chain concepts and principles have
been put in practice in a much more effective way. These concepts include: information sharing, multi-
party collaboration, design for supply chain management, postponement for mass customization,
outsourcing and partnerships, and extended or joint performance measures. The Internet has allowed
companies to come up with highly innovative solutions that accelerated the widespread adoption of these
core supply chain principles. Table 2 below summarizes the impact of e-business on supply chain
integration with respect to the various business processes involved.

In the next few years, we will see an explosion of business-tobusiness applications of the Internet
as visionary companies develop new paradigms of e-business for the future. Many have already found
ample opportunities in e-business. Such advancements have accelerated the movement towards supply
chain integration. The landscape of such integration efforts will be very different from the traditional
ones. Companies that make use of e-business to redefine supply chain integration will achieve significant
increases in efficiency and gain tremendous competitive edge over their competitors.
=========================================

Conclusion

This study informs both theory and practice by examining the growth data of B2B e-commerce for
the U.S. Manufacturing sector in a longitudinal manner for a sixteen-year period. Statistical analysis
indicated that other factors contributed to the growth of e-commerce, not just the overall growth of
business activity. A maturity model provides a framework for discussing stages of integration and the
progression over an extended timespan. The maturity of an organisation relative to systems integration is
strongly suggested as a significant factor that determines the success and therefore the growth of e-
commerce and related Internet-based business applications. Synchronising the maturity of multiple
systems is also discussed as a key factor that affects the growth rate. The overall slow growth rate of e-
commerce in its early years can be partially explained by the lack of systems integration maturity. The
slow growth of e-commerce in the first few years of the recent digital onslaught, and the lag prior to the
start of a growth spurt provide evidence that the advancement from one level to a higher level of maturity
requires a substantial amount of time. Based on this understanding, the deductive arguments in this study
can serve to inform managers who are planning new or enhanced e-commerce systems so that they
engage their plans amidst realistic expectations for future e-commerce and related systems
implementation.

===================================================
Conclusion:

The role of logistics industry is expanding with the technological advancements and it
requires necessary infrastructure, communication, etc for its complete realization. It is going to be the
business trend in the future. The business economy of the country should be ready to accommodate such a
new trend. It is also equally important that the customers have to protect from those operators in the field
from cheating and the existing laws have to be amended to safeguard the customers. The traditional
caveat-emptor concept can be reconceptualised as electronic-emptor. The consumers should be
accordingly educated with complete awareness to protect themselves from furious e-retailers. The
consumer movement and the cyber laws have to be oriented together to safeguard the end-users.

====================================================

Conclusion:-

Retailers today are employing numerous ways to communicate with the customers like emails,
newsletters, social media, advertisements, text messages and calls. With these mediums they are able to
touch base with their customers and inform them about the status of their order and other services. At the
same time, the eCommerce players realize that the person who delivers the product is the face of the
company for the customer. The behaviour of the delivery person is a crucial factor to build a rapport with
the customer. It is important to keep track of the delivery personnel who can easily deviate from the
company rules and give untimely delivery of products. The delivery men should not be overburdened also
as their ill-mood can affect the way they communicate with the customer. Thus, retailers should partner
with those logistics firms which are professional in their approach

The main role of logistics is to provide timely and efficient delivery of products so that the
customer is satisfied and becomes your repeat customer, and also earns you more customers. Today, the
online shoppers have the powerful tool of social media in their hands. They simply have to post on
facebook or tweet about their experience, and this can make or break a company‟s image. In today‟s
competitive market conditions, retailers have to put in the best efforts to exceed customer satisfaction.
Some of the largest e-retailers have implemented same-day delivery to woo customers who can‟t or
won‟t wait for even next-day service. Some retailers offer free or low cost shipping for many products
(after a particular price range). An online consumer is looking for attractive pricing and hassle-free
delivery of products. An exceptional product delivery experience is critical in not just winning but
retaining clients. So, it is in the best interest of the eCommerce players to entail professional logistics
services which would result in faster growth, success and dynamism for the company

=======================================
Strategies of Supply Chain Management for E-Commerce

- The main focus of any E-commerce Business is to deliver a product on time to its customers.
Therefore SCM has developed a strategy to strengthen the inbound supply chain by accessing the
currently existing problems and finding solutions to them, identifying the vendors who are
responsible for the delay, Implementing compliance programs for vendors, and ensuring faster and
cheaper ways of conducting final checks on supply chains.
- Supply chain management has further developed strategies that help in lowering the cost and time
for delivery.
- Since organizations can monitor the inflow and outflow of products on regular basis through the
SCM software, the normal capacity of a warehouse can be utilized to its fullest by tracking the
products being delivered and are yet to be sent to customers.
- It further has developed strategies that have reduced manual labor. All the documentation can be
done and stored in the machines. This helps reduce the risk of human errors and also adds to the
efficiency of the organizations using supply chain management because the processing time
considerably reduces. Students who are finding it difficult to understand how supply chain
management increases the market efficiency can take marketing assignment help from
professionals. They guide students and help them gain more clarity.
- Supply Chain Management further helps to reduce labor costs by making the most of their skills. It
has also developed strategies to streamline the process of taking orders. As a result, the number of
accepting orders in a day has increased leading to more revenue.
- It has also helped in the growth and development of E-Commerce by making the most of the
existing warehouses reducing the outbound expenditures by using logistics of the third party.

====================================

II. Optimising the supply chain for e-commerce

As we’ve covered above, e-commerce creates new logistical challenges. Let's explore the
solutions that already exist to improve supply chain management in e-commerce.

1. Available inventory management methods for e-commerce

 There are several inventory management methods that are suitable for e-commerce. Here are the 3
most common.

1.1. Dropshipping

Dropshipping is a management method that does not require stock or inventory.

In this case, the e-merchant only buys the product once the customer has placed an order. It is not
the merchant who manages the shipment, but a wholesaler or the manufacturer.

The main advantages are the reduced need for storage space, inventory management and handling.
Higher delivery costs for this system can mean lower profitability.

This method is only relevant if you have a reliable supplier who can handle unit parcel deliveries.

This option is increasingly singled out for its lack of ethics, product customisation, quality, and its
poor customer experience. As an e-merchant, you do not have control over the quality of the product
upstream and you will never be able to ensure the complete conformity of the product before it is sent to
your customer.

1.2. JIT - Just in time

Also called the “re-order point method”. It is based on the principle of critical stock. This means
you have the right stock in the right place at the right time. The goal is to never have dormant or
deteriorated stock.

With this method, you reduce your stocks and storage costs to a minimum by producing the right
quantity of product at exactly the right time. This requires specialised logistics and fluid organisation
between your suppliers and your customers.

With this system, it is possible to adjust stock levels on demand. However, you may be caught off-
guard if demand is higher than anticipated and you run the risk of running out of stock.

1.3. On-demand forecasting

 On-demand forecasting allows you to manage your stocks according to the forecasts made on your
products according to trends, seasonality, etc. These forecasts are based on your historical sales data to
predict future demand.

This method makes it possible to seize new opportunities in the market and anticipate problems
before they arise. The e-merchant can plan a production volume higher or lower than normal and manage
supply. The goal is to maintain a stock as low as possible, but which is still able to meet consumer
demand.

On-demand forecasting requires a reliable database and data without risk of assumption. If
everything is done correctly, it is a very efficient form of inventory management for your supply chain.

There are other methods such as FIFO (first in, first out), or LIFO (last in, first out) that are
covered in our article dedicated to the different methods of inventory and supply chain management.

2. Supply chain tools and software for e-commerce

Faced with these new challenges, software and tools have emerged to manage e-commerce supply
chains. They are essential for carrying out forecasts and logistics planning.

2.1. The rolling forecast

Synonymous with forecasting, the rolling forecast is a management tool that provides a
provisional schedule that is updated in real-time.

This tool allows optimal management in a constantly changing environment thanks to high
precision forecasting demands.

It allows more flexibility and is more agile than traditional management tools. The rolling
forecast, by improving stock management, improves budget forecasts and company performance.

Forecasts can be made for the short, medium or long term.

2.2. ERPs
 ERPs (Enterprise Resource Planning) are software used to manage and centralise all the activities
of a company.

They are essential for visualising and optimising production performance and costs. ERPs make it
possible to effectively control inventory management, and to plan, anticipate and react quickly to
unforeseen events.

The objective of inventory management ERPs is:

● to have a centralised view of your stocks

● to view and manage orders in real-time

● to know the state of stocks instantly

● to improve the traceability of products in your supply chain

There are many ERPs for inventory management: Dolisim, Openconcerto, etc.

2.3. APS software

APS software (Advanced Planning Systems) aims to help decision-making in business.

They allow management to have a closer view of the current position and affords greater
flexibility and responsiveness. Thanks to APS, the supply chain is organised in such a way as to be able to
respond to consumer demand while integrating all the key stages of the supply chain (purchase,
production, storage, distribution, transport, etc.).

The data processed by the APS helps e-merchants to allocate available resources to efficiently
process consumer requests.

2.4. WMS and TMS

WMS (Warehouse Management Systems) and TMS (Transport Management Systems) enable
warehouse and transport management.
 WMS is software designed to manage all of the logistics processes of an automated warehouse
(supply, inventory management, transfer, order preparation, shipments, etc.).

All arriving and despatched goods are recorded by the WMS providing an accurate view of stocks
in real-time. You can also control the internal operations of your warehouse and optimise its operations.

TMS software has features dedicated to the management of freight transport. It improves the
traceability of your transport flows and their organisation. Reducing transport costs is at the center of
TMS software.

Through TMS software, you can organise your supply and delivery schedules, optimise the
management of your vehicle fleet, track goods in real-time or prepare invoices.

Accurate data analysis allows for clearer decision making.

These two types of software are often used in a complementary way to maximise the performance
of the supply chain.

III. Solutions to simplify e-commerce

New solutions have emerged to simplify and make e-commerce and supply chains even more efficient.

1. Low emission modes of transport

Using low-emission modes of transport makes it possible to limit the costs linked to e-commerce.

Using electric vehicles makes delivery greener. For example, Picnic, the European leader in the
distribution of food products on the internet, is optimising its deliveries district by district by using
electric carts.

Delivery by bicycle, particularly for the last mile, helps to enhance your brand image and reduces
environmental impact. For example, Appli Colis offers urban delivery for small to medium-sized
packages.

This low-emission transport makes it possible to anticipate and adapt to cities with Low (and Ultra
Low) Emission Zones.
2. Adapting points of sale for e-commerce

Many changes have been made to simplify and secure deliveries.

You can now find order collection lockers in town centres, train stations and even shopping
centres. The customer can efficiently retrieve their parcels using a code issued by the sender. This frees
operators from pick-up validations, declutters storage spaces and improves overall customer satisfaction.

Mobile technologies are now available to help senders prepare orders. Using a smartphone, tablet,
or smartwatch, they allow orders to be prepared and provide information on status in real-time, allowing
better responsiveness.

3. The location of suppliers and storage

The location of suppliers and storage is important because it impacts the efficiency of delivery in
e-commerce.

By choosing storage spaces that are closer to customers, distances between warehousing and
customers are reduced, as are delivery times and costs. In addition, it allows for greater responsiveness in
the event of unforeseen circumstances. Where possible, pooling the costs of a warehouse with another
company in a similar sector in order to have a wider geographical coverage provides for a lower overall
cost.

4. Delivery optimisation

Finally, the optimisation of deliveries creates better efficiencies, and reduces costs, leading to
increased customer satisfaction.

Delivery can be improved through 3 main factors:

● Traceability: real-time tracking of goods. This information makes it possible to offer better follow-
up to the customer and better anticipation of deadlines, whilst reducing the risk of lost goods.
Solutions such as RFID chips or the Shippeo platform offer improvements in traceability.
 ● Loading: adapting your product and your packaging to your different delivery types can improve
your loading. Optimising the way that trucks are filled can help to reduce delivery costs.
Furthermore, thanks to cargo planning, operators can prepare, load and unload trucks more
quickly.

● Route selection: By optimising delivery routes using transport management software, you can
reduce delivery times and related costs. Optimisation of journeys also makes it possible to reduce
empty miles. It costs you less and is more environmentally friendly.

To conclude, in recent years, the growth of e-commerce has greatly impacted the world of
logistics and supply chains.

With demand moving towards ever more precision and speed, companies must meet the new
challenges as they arise. The supply chain is becoming ever more efficient and better connected.

However, the world of logistics must also face its responsibilities and move towards more
sustainable consumption patterns. E-commerce raises crucial questions, with overconsumption and
environmental impact at the heart of the debate.

The real challenge for the e-commerce supply chain is achieving a gradual transformation that
combines growth and sustainability at the same time.

If you would like to discuss your logistics issues with our business experts, you can contact them
here. You can also access our other blog articles to learn more about the supply chain and pallet pooling.

================================

9. Implications

9.1 Theoretical implications

In many companies, logistics is still treated only as a source of costs and an instrument to support
other business areas. However, this is different in e-commerce, where its role is much more important. It
is reasonable to argue that without logistics and its solutions, e-commerce would function to a very
limited extent. Today, logistics and its processes and tools are a prerequisite for effective online sales.
However, those companies that implement new customer-specific logistics solutions achieve a
competitive advantage. Logistics not only supports e-commerce but also opens up new opportunities for
it.
 The logistics factors indicated and described in the article differently affect the value for the
customer. This value is subjective and dynamic. For this reason, the online seller should develop a system
to create a sustainable value proposition. It is plausible due to the possibility of choosing the type of
delivery, date of collection and change thereof, as well as that of returning the product. Thanks to all this,
the customer decides on the way of the order execution and creates the value chain.

The research has shown that the logistics value, consisting of a convenient place of delivery, time
and flexibility of delivery, delivery monitoring and convenience of return, impacts customer satisfaction
positively. Moreover, the industry in which a seller operates differentiates the customer satisfaction
construct. The overall service level in the industry positively influences customer satisfaction. In addition,
the relationship between the logistics value and customer satisfaction is stronger when transactions are
made in industries with higher service levels. These results are theoretical contributions in the area of
logistics value and e-commerce. Moreover, to our best knowledge, our study is the first substantiation of
the relationships between variables from organization and industry levels in e-commerce.

9.2 Managerial implications

The results obtained and the representativeness of the surveyed sample of companies lead to the
formulation of implications for business practice. Our study allows to benefit by managers of logistics e-
commerce by improving their understanding of the expected value for the customer. The conclusions of
the research definitely indicate a need to build awareness of logistics value and its influence on customer
satisfaction through the service level in the industry. Because of the identified components of the logistics
value and industry characteristics, managers of online retailers can better increase customer satisfaction
and thus improve their performance. Moreover, the results provide managers with insights into the overall
level of customer service in the industry that should be considered when they are going to sell new
products.

10. Limitations and further research

We distinguished two kinds of research limitations in our study – methodological and substantive.
The methodological limitations the very essence of the model which simplifies the economic reality and
thus reduces the complex factual situation. In the developed model, certain elements, which, in the
authors’ opinion, were most important, were identified. The relationships between these elements
expressed in the form of hypotheses were presented. The aim was to understand and explain the
mechanisms and structure of the logistics value. However, the examined object consists of variables that
are not directly observable. These variables are reflected in the literature, but their measurement is not
clear. This was connected with the necessity to develop indicators measuring specific variables. However,
there is a risk that some of them may have been blurred. Another methodological limitation is that we
studied the customer satisfaction from the seller perspective. The simultaneous examination of two groups
may be the subject of further research, but this requires access to the specific customers of the seller in
question, which may be very difficult to implement on a larger scale.

The substantive limitation is that the developed model is aimed at identifying universal
relationships which create the customer satisfaction mechanism for the logistics value. However, this may
result in other aspects of customer satisfaction being neglected. We are aware that the creation of value by
a company in e-commerce must be approached in a systematic manner. On the one hand, without
marketing and sales support, it is difficult to identify the customers’ needs and prepare an offer for them,
and on the other hand, negligence in the field of logistics eliminates the efforts made in these areas of
business. Moreover, value is created and delivered not only by online stores but by many other entities,
such as marketplaces, financial institutions, logistics companies, warehouse service providers, companies
dealing with website positioning. In the process of value creation, all entities involved in creating value in
e-commerce should be considered. Taking these observations into account may be the subject of future
research, which would increase the substantive value of the model.

==========================================

Best Practices for Effective Supply Chain Management in eCommerce

How can you prepare your eCommerce business to avoid supply shortages, shipping delays,
excess inventory, and still maintain fully functional products for the long run? Besides doing our own
reports from external market insights and analysis, we dug even deeper and consulted with the logistics
network of several established businesses to learn from their experience. Based on this intense analysis,
we came up with five best practices and learnings that will help you to harness and maximize your
business values in the short- and long-run.

Here are the following takeaways for managing an eCommerce supply chain:

1. Diversify and use Flexible Warehouses as well as Suppliers

Having a central distribution point from only one provider creates a dependency that might shake
up your business if anything goes wrong. It is always a good idea to rely on multiple suppliers and a
higher number of locally maintained distribution points. In case anything goes wrong with one of your
suppliers, you can easily source products from a different supplier.

For example, Nykaa, an online cosmetics company co-operates with other cosmetic brands and
attracts high-quality suppliers to sell their products on their platform. When a customer places an order on
Nykaa, it might be picked from Nykaa’s warehouse or another supplier’s warehouse. Doing this will
ensure you don’t have to worry about your business and still retain your customers.

2. Improve your Sales Forecasting

With an increase in demands, products are going to be moved from one location to another. To
meet these demands, eCommerce businesses make the mistake of increasing their inventory drastically.
At this stage time as well as sales forecasting is very critical.

Buying too much inventory would mean creeping costs, obsolete stock, and additional overload in
the form of warehousing. As a merchant, using real-time data transparency will help you to control supply
chains and react timely to changing demands.

By using a proper sales channel and management system, you can optimize their supply chains
and stocks by receiving direct notifications when their supply reaches minimum thresholds.

3. Leverage and Embrace Supply Chain Software

Knowing that there are multitudes of tools to manage supply chains is good, but not taking
advantage of them is like shooting yourself in the foot.

You can use various software dedicated to handling supply chains that can properly track and
manage your inventory, process orders, manage suppliers, and more. Having said that, you can also use an
inventory management software like EasyEcom to handle these operations and manage your B2B
processes. Technologies such as data analytics, big data, warehouse management systems as well as
inventory and logistics management can help you to increase your supply chain efficiency.

Alternatively, you can also pick a single platform such as an ERP system like SAP, Oracle,
Navision, etc. to manage most of the activities under one roof. This will support you to deliver your
orders faster with a lesser chance of making any errors.
 4. Decrease Processing Time by Managing Labor Effectively

Making use of barcode technology for warehouse systems and automation will gain efficiency in
material handling, storage, product flow, and labor productivity. Try to implement barcode technology in
areas such as picking, packing, receiving, put away, shipping, returns, labor tracking, and replenishment.
If you don’t achieve a favorable outcome on applying such technology automation, shift your strategic
goal to managing labor more effectively.

5. Embrace Drop Shipping for your Ecommerce

In simple words, dropshipping is referred to as finding low-cost products in wholesale and selling
them at a higher price. So essentially, you find and procure products from a supplier with a low wholesale
price. You then place that product in your store with a higher retail price. It is a very popular practice on
eCommerce platforms like Amazon, eBay, and Shopify.

Amazon’s drop shipping model is quite simple to understand and practice. When a consumer
shows interest in a product you’ve listed on Amazon, wait for the transaction to finalize and then buy this
product directly from the supplier after you receive the funds. You then provide the consumer information
to the supplier and then they send the product to the consumer on their own.

Benefits of dropshipping:

● Keeping stock or buying inventory not necessary

● No prior redundant investment in stock

● Takes lesser time for delivery

● Add or change your range of products without any risk or investment

● Set up a start-up store at a low cost

However, finding reliable suppliers and quality products is the hardest part of drop shipping.
Using drop shipping wisely can be the real revolution of your eCommerce business.
 6. Outsourcing to 3PL and 4PL

Using 3PL and 4PL companies like UPS, DHL, Deloitte to optimize your supply chain
management (SCM) is fairly common yet one of the most effective eCommerce supply chain
management strategies. A 3PL company can enhance your customer service offerings with its already
established distribution network or you can choose to go to a 4PL company that could offer you the best
supply chain management solution for your eCommerce business using 3PL providers.

The logistics functions that can be outsourced may vary from business to business but they usually
involve warehousing, distribution, and order fulfillment. Handling these activities constantly can be a
daunting task and can get unmanageable for more complicated and critical supply chains.

7. Implementing a Management Software

Forget about eCommerce supply chain management strategies, investing in management software
is always a good idea for a growing eCommerce business. An inventory management software, a WMS,
or an OMS automate a lot of crucial business operations that you can’t do manually, and supply chain
management is one such operation. Although, optimizing it requires much more than an automating
software, implementing one is still a step in the right direction.

The e-commerce companies that are closely interconnected with supply chain management can
readily customize their store with new products, launch new digital stores, and branch out to additional
regions.

Even new technologies like Big data analytics, the Internet of Things (IoT), and cloud computing
can be adopted to enhance the processes in terms of production level, system level, operational level, and
decision-making level. A lot of management softwares come equipped with these technologies to make it
easier for you to handle a range of activities in the chain. An integrated and clearly established SCM will
help you gain an edge over your competitors.

==========================================

CONCLUSION

Expanding ICT has broken down barriers to make it easier to start and grow a business online
in every industry and logistics and SCM continue to be pushed in new direction by e-commerce. The new
trends in e-commerce like cloud computing, mobile applications, big data, social networks can offer
great opportunities for companies in order to redefine their corporate strategies and to redesign their
business models. The percentage of e-commerce sales is growing continuously and the increased volumes
are putting unprecedented demands on the supply chains of e-commerce and omni-channel retailers. In
this chapter, a broad overview of current e-commerce applications in logistics and SCM is given. It gives
researchers and practitioners better understanding the role of e-commerce in logistics and SCM in order to
ex-pand business and provide competitive advantages

========================================

5.3 Implications for theory

In their grounded theory paper, Golicic et al. (2002) reveal the nature of the e-commerce industry:
speed, information visibility, connectivity, and uncertainty. These characteristics apply to the Indonesian
e-commerce business. The rate of change in this industry is quite fast that the Golicic et al. illustrate as
"moving at 150 miles an hour" while the conventional business only "moving 20 miles an hour" (857).
Similarly, in our study, one informant mentions,

"[E]-commerce is in the far-right line, which is the fastest lane." (Informant P)

This kind of vibe requires the managers to make quick decisions, not only reactively but also
proactively. Often time, without sufficient information or data. In a conventional business, managers
could discuss problems in a monthly meeting. Whereas, in the e-commerce business, they have to solve
the issues right away and monitor the progress daily, if not hourly. The manager has to stay alert, learn
fast, and make improvements. Indeed, managing the supply chain of e-commerce is perceived as more
complex than that of a conventional business, as previously argued by Yu et al. (2017).

The informants highlight the importance of solving problems and making successive continuous
improvements to prevent recurring issues as they realize the intense competition in the online retail
industry. This competition is also one characteristic defining e-commerce (e.g., Golicic et al. 2002,
Karagozoglu and Lindell 2004, Dubelaar et al. 2005, Torres et al. 2014). In our study, the informants raise
two main supply-chain-related factors for e-commerce's success, that is, original products and fast and
accurate delivery. Authentic products could be of a concern since Indonesia is still abundant with
counterfeit products or imitations. Therefore, it is imperative to secure consumers' trust with the authentic.
As such, managers need to source products from credible suppliers.

Outsourcing is another issue in managing the logistics of e-commerce. Theoretically, outsourcing

is vital for ecommerce to lessen the investment; yet, previous research also acknowledges the problems
associated with satisfying customers' requirements (Yu et al. 2017). Our informants second that argument.
They bring up the complications of fulfilling customer orders when coordinating with third parties, both
warehouse providers and express-logistics providers.

Furthermore, significant challenges emerge when e-commerce outsources the logistics activities to
3PLs. An informant, whose e-commerce outsources its logistics activities, mentions his difficulties in
delivering the products in a very tight allocated lead time. The company has to "share" its product
shipment with its competitors, especially during the Indonesian big and famous online sale (November
11th and December 12th).

The fast-delivery requirement of end customers, coupled with limited resources, toughens the
responsibility of managing the flow of e-commerce products. From their experiences, the informants
argue that information sharing and tight coordination are crucial to successfully managing the supply
chain, aligned with previous studies (Golicic et al. 2002, Dubelaar et al. 2005). A good partnership with
external logistics partners is also a must (Ta et al. 2015), more so in the e-commerce business than in the
conventional ones. One informant reports collaboration practice among the warehouses in his company
and also with other online retailers. Leadership was one of the significant factors that made a company
collaborate with its supply chain partners, which aligned with Yunus and Kurniawan's (2015) study.

Interestingly, no informant mentions information technology (IT) capability as a problem. The

company where they work has a dedicated IT team and thus dependably solve any IT issues. An
informant even boasts no logistical issue within his area of work due to the sophisticated and robust IT
system. The only challenge he faces is mainly human resource issues. Other informants also feel that the
human resources aspect is the most challenging to manage. Nevertheless, most informants could offer a
solution to manage human resources: building good teamwork and monitoring and evaluation.

When we dig deeper into the literature, there are mixed results regarding the importance of
logistics capability as an e-commerce strategy. Ricker and Kalakota (1999) and Ghezzi et al. (2012) argue
that logistics superiority is the key to the viability of e-commerce. Cho et al. (2008) further provide
evidence of a positive relationship between logistics capability and e-commerce performance. The
findings conflict with those of Karagozoglu and Lindell (2004) and Torres et al. (2014). Their studies
assert that logistics capability, which brings cost differentiation to the market, does not correlate
significantly with e-commerce performance. On the other hand, innovation advantage is the crucial facet
that defines the success of e-commerce (Torres et al. 2014).

Reflecting on these previous findings and pondering the informants' interpretations of the current
study, we infer that logistics capabilities are no longer sufficient in today's fierce competition. Logistics
performance, which once was an order winner, might become a qualifier (Hill 2000), which only
guarantees a company to enter the market, but not necessarily warrants its success. Our findings support
this notion.
 Finally, this study proposes a framework to portray all linkages as well as synthesize all the
findings, as depicted in Figure 1. The framework presents the overall picture of codes or meaning units
from the informants. It is still preliminary and speculative; therefore, it provides valuable opportunities
for future studies for validation.

As highlighted by all informants, customer satisfaction is the primary goal of managing e-

commerce. Managers accomplish excellence in two facets: the products and delivery services. The
products have to be original, which result from good sourcing practice; whereas, the deliveries have to be
fast and accurate. Three good practices derive three latter facets:

a. close monitoring and evaluation, particularly in managing the team;

b. win-win partnership, particularly when the company has limited resources and thus outsources
the warehousing and delivering activities;

c. reliable and robust information technology (IT) system served as an enabler.

The implementation of close monitoring and evaluation, which is once pressurized by the
necessity to manage subordinates, triggers actions to overcome problems. The works are not only
reactively, but also proactively as to prevent subsequent problems. This turn of events pushes the
managers to create significant improvements, which sustain the e-commerce company in the intense
competition.

5.4 Implications for practice

This study provides empirical evidence of the life of managing a supply chain of e-commerce. The
supply chain is an essential aspect of e-commerce, as one of the informant captions,
 “Good e-commerce reflects good logistics. Excellent logistic management defines e-commerce
itself” (Informant Q).

Operations managers who are in charge of sourcing and delivering products are the soul of online
retail. They deal directly with end customers and contribute positively to customer satisfaction by
fulfilling their service level. Several recommendations could be extracted from the study for managers.
That is:

1) practicing good sourcing management (i.e., getting the products from the right sources);

2) engaging in good collaboration with 3PLs; and

3) building good teamwork within the company. In e-commerce, continuous monitoring is

pertinent to get the work done as fast as possible. This study encourages managers to find the root cause
of a problem and implement the solution right away, with constant evaluation and further improvement.

5.5 Limitation of the study

This study has a limitation. As this study uses a phenomenology approach, the number of
informants is justifiable since the researcher could deeply investigate the informants' experiences in
managing the e-commerce supply chain. Nevertheless, the interviews are conducted once with each
informant; therefore, the information is still limited and should be elaborated by future studies.

6. Conclusion

This study reveals the practices and challenges of managing the supply chain of e-commerce in
Indonesia. The ways of managing e-commerce logistics are essentially different from the traditional ones.
Therefore, managers need some guidance from hands-on experience. The findings could enrich the
management literature, specifically in supply chain management, and enhance the understanding of
managers who are currently working or willing to join e-commerce. This study contributes to the
literature by illuminating hands-on experiences in e-commerce and providing a fresh approach to
investigating this growing phenomenon.

Furthermore, this study provides a framework that captures themes and codes obtained from the
informants. The verification of the framework is beyond this research scope since phenomenology
research does not require a framework to present findings. The proposed framework could be a starting
point for future research to resume an ecommerce examination and apply it to other contexts or
populations. Therefore, we encourage other scholars to validate the findings.

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4. Conclusion

Technology and the internet affect the supply chain in companies that exist, easy information
exchange, real-time communication with customers or suppliers, quick response, etc. These benefits have
an impact on increasing customer satisfaction, efficiency and effectiveness, as well as the company's
opportunities for market development. Companies also need to understand how technology does not
automatically increase productivity, but needs support from knowledge management. To be a successful
knowledge management company, you need to have a close relationship Business, binding perspectives
and architecture, leadership knowledge, creation and exchange of a knowledge culture, continuous
learning, developed technological infrastructure and systematic organizational knowledge processes.

This application system is designed into two parts, namely the front-end and back-end. The front-
end can be used by consumers by accessing it via a smartphone. The back-end section can be accessed by
the Coffee for sale admin using a computer. Maintaining the collaboration with institutions related to the
agricultural industry, especially coffee farming. Developing the user interface on the Coffee for sale
application to increase the ease of interaction between sellers and consumers. Developing a business
model so that it can be adapted to the conditions in the future.

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8. Conclusion

This paper has reviewed the emerging concepts of SCM in various contexts, with particular
reference to the retailing sector an d the significant role of EC technologies. The paper has also presented
an innovative management model of best practice for SCM based on partnership and supported by EC
technologies. While the emergence of more EC technologies provides ample opportunities for retailers to
add value and convenience to the services offered to their customers, the success in this regard is mainly
dependent on the understanding of how the supply-chain model will have to be changed to facilitate the
working of these technologies.

The concepts of SCM and EC appear to be complementary and have common and overlapping
features. For instance, the supplier-seller relationship in EC aligns with the sourcing and delivering
activities in SCM. On the other hand, EC focuses on enabling more efficient information flow, while
SCM works at facilitating the physical workflows between elements of the supply chain. It is on this basis
that the partnership SCM model will increase the level of integration between various partners and thus
paves the way for more effective use of various EC technologies.

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CONCLUSION

As consumers and businesses embrace the Internet, strategies of e-commerce applications and
processes need to be constantly reassessed. Many Internet retailers overlooked the importance of supply
chain management and managing inventory processes. Large retailers seem to have an advantage over
small retailers. Large retailers have more financial resources to implement click and mortar services so
they don’t always have to rely on a third party to deliver their products. Click and mortar retailers also
seem to benefit from synergies developed by being able to sell from multiple channels. Furthermore, click
and mortar retailers can integrate processes such as advertising and logistics through their online and
physical channels creating further synergies. Implementing click and mortar strategies provides flexibility
for customers, and providing elite customer satisfaction is the goal for all businesses (Steinfield, 2005).
Xu(2011) believes that supply chain quality management success relies on more sophisticated systems
than are currently available. As technology advances, the overall quality of supply chain quality
management will improve. Supply chain planning systems that create a model of the current supply chain
generate demand forecasts for their products and assist them in the creation of optimal sourcing and
manufacturing plans (Laudon and Laudon, 2012).

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V. CONCLUSIONS AND PERSPECTIVE

As Web technologies evolve, e-commerce hasbecome a powerful and compelling enabler of

supplychain integration that across a wide range of industries. The aspects of speed and connectivity of
Internet technology have changed the nature of conductingbusiness. Because e-commerce affects SCM,
information visibility is achieved through connectivityamong trading partners, therefore, supply chain can
bebetter managed. Integrating e-commerce into theexisting supply chain is not only necessary for
attainingcompanies’ competitive advantages, but also for companies’ survival in the globally
competitiveenvironment.

Dell was offering Web-based storefronts that combined online catalogs and advertising
techniqueswith new technology tools such as Web sitepersonalization, self-service, interactive shopping
carts, bid boards, credit card payment, and online communities that permitted actual online shopping
including bidding and auctioning.

Overall speaking, incorporating e-commerce into supply chain process could achieve the
following advantages: reducing purchasing cycle time, cutting transaction cost, decreasing purchasing
cost through the more competitive electronic marketplaces, enhancing the collaborations among suppliers
and buyersthrough collaborative software, lowering inventory, fulfilling customers’ demand faster, and
boosting market access.

Dell matches supply and demand because its customers order computer configurations over the
phone or online. This allows Dell to know what he must be able to supply in real time and then very
quickly and precisely meet that demand while maintaining low inventory. These computer configurations
are built up from components that are available. Dell’s strategy is to provide customized, low cost, faster,
and quality computers that are delivered on time. Dell also saves time on processing orders that other
companies normally incur in their sales and distribution system. In addition, by directly dealing with the
customer Dell gets a clearer indication of market trends. This helps Dell to plan for future besides better
managing its supply chain.

Web technology, especially e-commerce has the capacity to have an impact on the physical,
information and financial flows of supply chains. At a simplistic level, supply chains are typically made
up of three major flows – physical flows, financial and information flows. Physical flows can be affected
by using information to avoid physical movements and to make product information available through
virtual ways. In essence, e- commerce can give companies access to more markets and customers without
the physical need to move the levels of product and inventory that were required in the past. Information
flows can be affected by the capacity of e-commerce solutions to provide 24/7 access to information and
to eliminate traditional paper-based approaches to working and company interactions. E- commerce is
also particularly well suited to providing information such as product tracking and tracing. And financial
flows can be affected by the capacity for e- commerce solutions to offer faster payment and settlement
solutions at all stages of the supply chain.

The final and most sophisticated of the e-commerce regions is supply chain collaboration where
both customers and partners are able to seek to leverage the full value of real-time transactions and
collaboration solutions.

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Conclusions and Guidelines

 The scorecard provides a tool to analyze the impact of the e-channel on a supply chain and how it
is best positioned. It also indicates detailed areas for potential concern, which must be considered when
setting up an e-business.

From a supply chain operations perspective, the analysis suggests some guidelines that may help
the ebusiness in practice:

- Think about integrating the Internet with the existing supply chain network, rather than setting up
a separate e-business. Integration will leverage and improve current processes, while separate
channels may add inefficiencies to the supply chain.
- Structure e-business logistics to accommodate packages instead of pallets. The goal should be to
mitigate the loss of economies of scale due to increased volume in smaller sizes. This suggests
new logistics opportunities such as order consolidation (merge in transit, mega distributors) and
order pick-up sites.
- Devise shipping pricing strategies that reflect the costs of activities. Disregarding or
underestimating transportation costs has contributed to the losses incurred by e-grocers to date.
- Design the supply chain to efficiently handle returns. Because the Internet cannot match the
traditional customer experience of touching, feeling, testing and even smelling the product before
buying it, returns in an e-business will always exceed those of traditional store.
- Keep customers informed throughout the fulfillment and returns cycle.

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Conclusions and Future Research

Modern e-commerce platforms are more than a software solution for presentation of the company
products in the web space. Now they have real potential for their transformation into small-sized ERP
systems which are not limited just to the organisation. They are open to the supply chain members and to
online integration with their information systems which is a prerequisite for developing basic SCM
practices in the supply chain and achieving better competiveness of supply chain members. This evolution
stage of the e-commerce platforms is a signal for the appearance of alternatives for flexible SCM software
solutions.

The current research does not cover all the topics related to e-commerce platforms. It is focused on
the main framework and it could be used as a basis for other research projects for revealing detailed
problems about e-commerce platforms and 1) integration with logistics service providers and 2)
integration of the other transport, warehousing and inventory management systems used in the
organisation. Another alternative for future research projects is to cover the integration of e-commerce
platforms in the organisation and the level of usage of their functionalities for the automation of logistics
processes.

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7. CONCLUSION

Today effective supply chain management is becoming the strategy choice for the enterprise to
compete in the corporate world. E-commerce provides important means for effective operational supply
chain management. It uses the ICT to relate the customers, retailers, manufacturers, suppliers, and
employers, improve greatly the level of enterprise management. SCM make balance in between supply
and demand can receive market information in a very short time, improve the production rate and
economic benefit, reduce the production cost and fasten the products circulate, enhance the core
competitive force of enterprise. With the spread and improvement of ecommerce technology, it will
surely push the further development of supply chain management, and the enterprise who can realize and
solve the problems.