SCM Practices In E-Commerce

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SCM practices in the Ecommerce industry Industry overview E-commerce is defined as the buying and selling of product or service over electronic systems such as the Internet and other computer networks. It has totally transformed the retail industry and reshaped the consumer expectations of the shopping experience. The Internet is revolutionizing business activities from marketing and retailing, advertising and promoting products and services after sale. e-SCM provides the business houses with the ability to reach out to their manufacturers, suppliers, logistics providers or customers anytime. Retailers use online stores to test new products and expand their product offerings without having to carry inventory in store. This fundamental transformation…show more content…
E-commerce has facilitated a pervasive communication infrastructure among various supply chain members. This has revolutionized the entire SCM process from the way retailers choose and stock their merchandise in-store and virtual shelves to how the consumers shop and make purchases. Retailers are challenged to keep their systems and processes in step with this transformation, particularly when it comes to item-level management. The general practices followed by the B2C e-commerce industry are as…show more content…
Order creation - The e-retailer again checks for the inventory of the item before processing the order. After ensuring the availability and the payment processing, an invoice is generated for the order. 6. Confirmations, Notifications and tracking - The e-retailer then provides the order confirmation invoice generally over email and SMS. The e-retailer also provides a tracking link for the delivery of the product either directly or through the transporter website with the tracking Id. 7. Purchase order is sent to the vendor who delivers the product at the warehouse. Production department is informed about the receipt of the product which is picked by the shipping department. The forwarder then delivers it to the customer. 8. Reverse logistics - In case of manufacturing defect or similar reasons, the e-retailer provides a mechanism for the consumers to file a reverse logistic complaint generally through consumer support over email/mobile and coordinates with the transporter for the return pick up of the product from the consumer. On time delivery is the main focus for e-commerce business as it has a direct impact on customer experience. This requires uploading the entire inventory picture into the e-commerce front-end or the e-retailer front end making synchronous inventory checks for every item in the cart. In terms of inventory policies, the current practice is as
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