In my previous article, I discussed some of the facts that have to do with the development of digital marketing generally. In this article, I want to talk about some of the impacts of Supply Chain Management on Digital Marketing and e-commerce. Follow me as we are going to look at that together in this article.
Supply Chain Management has to do with the designing, planning, executing, controlling, and monitoring of supply chain activities. It has to do with the activities that are being carried out in order in order to ensure that information, products, and services get to the final consumer.
It is observed that organizations rely on the supply chain in order to compete in the global economy and networked environment. As we all know that the world is a global village and businesses are looking for ways to carry out transactions beyond their immediate environment.
Therefore they will rely on another organization in order to ensure that the products and services purchased get to the recipient. This will continue to increase sales and boost the turnover of the organization in the long run.
When we are looking at the flow of Supply Chain Management in an organization, it can be divided into three main categories, which are:
• Product flow
• Information flow
• Finances flow
E-commerce impacts….
With the advent of the internet, there have been considerable changes in the way we look at the supply chain in organizations. The reason is that it is no longer necessary for the buyers and sellers to meet face-to-face before transactions can actually take place. Let me now look at eight major ways that e-commerce has affected supply chain management practices.
#1 Cost-effective
With the advent of e-commerce, there has been a considerable reduction in the price of products and services. It has become difficult for organizations to inflate the price of products and services. This has also reduced some associated costs that would have been added had it been both the buyer and seller meeting face to face.
#2 Flexibility
Supply Chain Management has also introduced flexibility in managing the supply chain system. It has also given organizations the ability to choose the Distributions or logistics companies that they would like to transact business. It also allows organizations to come up with innovations that would assist them in saving costs as well.
#3 Customer orientation
Another amazing thing about supply chain management is the fact that it has changed customers’ orientation totally.
Before the average customer have the mindset that you cannot purchase a good product online without visiting the stores but after an encounter with good e-commerce sites, many customers have realized that it is possible for both online and in-store customers to have the same experience.
#4 Shipment tracking
Before, when you used the continual method of shipping products and services, you might not really known when your shipment arrives or how long it will take to get what you have ordered. That has become history.
Now, when you purchase a product or service online, it is very easy for you to follow up and know the expected time that you are likely to receive your shipment. This has boosted the confidence that the buyer has in the seller.
#5 Shipment notice in advance
Also, with the introduction of supply chain management in e-commerce, the customer can now get a notification when the product is about to be shipped to the buyer. This will also increase sales and up-selling. It will also boost the confidence that the buyer has in the seller as well.
Action Point
PS: I know you might agree with some of the points raised in this article or disagree with some of the issues raised.
Please share your thoughts on the topic discussed. We would appreciate it if you could drop your comment. Thanks in anticipation.
