Analysis of Relationship between Supply Chain Management and E-Commerce

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1 Analysis of Relationship between Supply Chain Management and E-Commerce C. Divya, Department of Computer Science, Kumaraguru College of Technology, Coimbatore, India Abstract-Recently emerging a new phenomenon is known as E-commerce and impact of E- commerce in Supply Chain Management (SCM). These two processes have gained important interest in academics and economic researchers in present years since SCM and E-commerce are boom as a critical success factors. However, different kinds of research present that SCM influenced by E-commerce. In this proposed work analysis the relationship between Business to Consumer (B- 2-C) e-commerce advantages influenced by SCM and usage of E-marketplace. The experimental results show that the B-2-C e-commerce has a positive direct and indirect and strong effect on SCM. Additionally, shows important positive impact of E-marketplace usage on SCM. Keywords E-commerce, Supply Chain Management (SCM), Business to Business, E-marketplace 1. Introduction In current year, resulting rapid emergence of electronic commerce and the exponential growth in communication and information technologies have extremely been restructure the business world. E-commerce now has extended a stage of changes where an innovative idea becomes more evolutionary in nature [1]. It has basically changed marketing strategies and sales, the economy and the way of B-2-C business model is conducted as well. The SCM (see Figure 1) has become extremely significant to companies in a progressively competitive marketplace in global. Companies basically focused on quality, manufacturing cost, and so on, but now their effort extends knowledge-based, compatibility and so on. Therefore, on the suggestion of different kind of industrial experts, the management had pay proper attention on business process is based on e-commerce mode by using the fundamental way of SCM. From this process got growth of business and it shows rapid Economic growth [2]. Table1 shows the different types of model used in this e- Commerce process Fig. 1 Basis SCM Table 1 Types of e-commerce process Types of e- Commerce process Work 22

2 Subscription Revenue Advertising Revenue Sales Revenue Affiliate Intranet Extranet Transaction Revenue Fee It denotes the web site responsibilities of subscription charge for access to the site. It gives the chance for suppliers to advertise. To rise the selling activities of goods, service or information directly to the customers. After, receiving a referral charge form the events, the businesses have leading business to members. IM is one sort of IT model typically utilized by product producing business for doing their inside works. It intermingled with the intranet connected to the internet for suppliers. Companies received a charge from the events for completing transaction. 2. The Relationship of E-Commerce of Marketing and SCM As the relationship of E-commerce and SCM have different kind of relationship or process of service and sales of products through the internet where used SCM which becomes important process in marketplace [3]. The SCM play a vital role in product deliver from the manufacturing place to customer place. SCM is known as networking system of business (commercial) activities included in supplying a complete services and product to the customer door. Recognizing or identifying the availability of source for example, assembly, materials, orders entry, warehousing, delivery distribution of products from the manufacturing place to the customer place (M2C). SCM is the also an important for business function links of product marketing (promotion) The movement of products (goods) over the appropriate SCM process to Manufacturer (S2M) and M2D (Management to Distributer) and lastly it extended to customer via media of retailer It markets or promotes the information sharing along with the SCM for example sales data, forecasts and product promotions. Therefore, the SCM can be defined into different kind of models as the relationship as related with other models. Specifically, in organization they connected with the product s flow, finances, services, information apart from a customer s source. The business environment become difficult that may advantage to closer and long term relationship with marketing process with e- commerce application [4]. E-commerce of marketing is one sort of new process or phenomenon of the product marketing or promoting via the internet. It has committed to the particular customer to deliver the product with the minimum period of time even though integral barrier of competition. Therefore the main aim of SCM plays a significant role so as to improve the product marketing or promotion in a long term basis with competitive benefit. 23

3 3. Manufacturer Supply Chain Components The SCM manufacturer component is based on number of internal as well as external agents and agencies for the marking work of products and production [5]. Thus, there are typically two components of supply chain are visible for example external supplier (Distributor) and internal suppliers. Figure 2 show the external and internal based user maintenance process where an internal scheme controls the all the supplier information, and external scheme controls within the supplier's organization. Who were having raw machinery, materials, equipment and corresponding things and supplied these things to the organization by themselves. One tier supplier, supplies directly to one tier. Two tiers Supplier, supplies directly to one tier. Three tier supplier, supplies directly to two tier supplier. Also this process has taken the transporting responsibility for the totally completed products to their correct location. Here the logistic managers are take an account for managing the product movement between corresponding location which also incorporates Distribution management: the transaction of goods from Manufacturer to Customer (M2C) over the middlemen for example retailer, dealer, wholesaler and so on. Traffic Management: It has ordering the approach of delivery for both outgoing and incoming materials and products. Fig. 2 External and Internal Based User Maintenance Process External suppliers The external suppliers supplied the raw machinery, materials, equipment and corresponding things from outdoor of organization which is named as Distributers or External suppliers, for example, distributers, agents, vendors and so on [6]. Marketing Management: The marking management consider the accountability of product promotion (marketing) from M2C, through the over the media for example price, product, place, product and publicity diffusion work of marketing mixture Internal supplier The internal suppliers are processing only the internal process, within the organization which includes The daily product production internal activities of work have been observing after by the transmission in sensibly. Different 24

4 kinds of processing function are made for example planning, manufacturing, shipping, quality. Creating own IT hub for their business with the organization boundary which process is used for ecommerce application and also the marketing over the internet. Major issues of Affecting SCM As the major issues of SCM as concerned, there are different kinds of issues plays a significant role for affecting practice of marketing based on the e-commerce application on SCM. Information technology (IT) The IT advanced, now a day most of organizations are adopting their won networking system for processing their internal and external administration work, marking the business, and business volume over the e-commerce practice by the use of networking process. Here, the IT comprises web, internet, intranet, EDI, extranet, scanner, barcode, point of sales demand and these are greatly influenced the e-commerce activities and it also help to get better product marketing process. E-Business and E-Commerce The term e-business and e-commerce are utilized synonymously in the production and marketing work of each organization. However, it typically practices internet and business transaction interaction in between two business parties, which means supplier to consumer, companies to supplier, and so on. Business-to-Business (B2B) Business-to-Business (B2B) is one sort of marketing approach and it typically utilized by organization for their e-commerce process of product marketing work for improving business buying and selling to other business. 4. Methodology In this work different kinds of analysis are made by using 310 warehouse owner, 400 retailers, 60 manufacturers and 140 suppliers. Business-to-Business (B2B) E-Commerce It is also one sort of technology utilized for business marketing work of any business where it s evolutions impacts Automated order entry systems Fig. 3. Different Types of Responder Electronic Data Inter (EDI) change in the network framework of e-commerce process Electronic store Net -market places 25

5 [1] Laith AlrubaieeĮ, Hameed Alshaibiı, Yasir Al-bayat, Relationship between B2B E- Commerce Benefits, E-Marketplace Usage and Supply Chain Management, Global Journal of Management and Business Research, Vol.12, Issue 9, Version 1.0, Fig. 4 Average of Responder In this proposed work examined the both data such as primary and secondary data and different kind of process are done such as data gathering, presentation, classification, analysis and finally interpretation. Here done hypothesis testing process for validate the collected data. The main analysis is done e- commerce mode of marketing practices on SCM system. From the results 3 and 4 proves that the significant of e-commerce advantages influenced by SCM and usage of E- marketplace. Most of responder gives positive response, and additionally, the modern e- networking system develops the advance SCM system. 5. Conclusion In this proposed work successfully analysis the relationship between Business to Consumer (B-2-C) e-commerce advantages influenced by SCM and usage of E- marketplace. The experimental results show that the B-2-C e-commerce has a positive direct and indirect and strong effect on SCM. Additionally, shows important positive impact of E-marketplace and modern e- networking system usage on SCM. REFERENCES [2] Merrill Warkentin, Ravi Bapna, Vijayan Sugumaran, The Role Of Mass Customization In Enhancing Supply Chain Relationships In B2C E-Commerce Markets, Journal of Electronic Commerce Research, Vol. 1, No. 2, PP , 2000 [3] Ramesh Chandra Rath, Sanghamitra Samal, An Overview of E-Commerce Practices of Marketing on Supply Chain Management in India: Emerging Business Opportunities and Challenges, International Journal of Supply Chain Management, Vol. 2, No. 2, [4] Shahzad Ahmad Khan, Yan Liang, Sumaira Shahzad, Adoption of Electronic Supply Chain Management and E-Commerce by Small and Medium Enterprises and Their Performance: A Survey of SMEs in Pakistan, American Journal of Industrial and Business Management, 4, , [5]SalmaAhmed, Asad Ullah, Buildingsupplychain Collaboration: Different Collaborative Approaches, Integral Review- A Journal of Management, Volume 5, No. 1, PP. 8-21, [6] João Gilberto Mendes dos Reis, Pedro Luiz de Oliveira Costa Neto, José Paulo Alves Fusco, Sivanilza Teixeira Machado, Supply Chain Strategies In The Context Of An Ecommerce Chain (E-Chain), Independent Journal Of Management & Production, Vol.5, No.2,

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