How e-commerce impacts supply chain management

How e-commerce impacts supply chain management

Sitting in the comfort of your home or office, scrolling through your phone or on your computer, and making purchases must be the most convenient way to shop. E-commerce is gaining more ground than ever before, as more people turn to the internet to make purchases. Businesses have benefited greatly from e-commerce because it is not only convenient but also less time-consuming.

Below are some ways in which e-commerce has impacted the supply chain:

Improved customer shopping experience.

In these digital times, with an increasing number of mobile applications to get things done without moving an inch, customers have embraced the option of shopping online and having their goods delivered. This helps them to save them a lot of trips to the malls and give them more time to focus on other assignments.

Reduced Cost.

E-commerce enables shippers and freight forwarders to organize their document handling better, without huge financial implications. It enables logistics companies to exchange documents electronically and streamline supply chain services; thereby reducing cost and improving customer service.

Changes in business and customer relationship dynamics.

The digital revolution and the emergence of e-commerce have changed the dynamics of the relationship between retailers and service providers. Businesses used to have more power over their customers, but the reverse now appears to be the case. E-commerce has made it easy for customers to have more power to direct the way businesses operate to service them and meet their needs.

Improved sales.

Businesses are taking the opportunity of e-commerce and globalization to boost their speed of conducting transactions and increase sales. Businesses are able to cater better to the needs of their customers and communicate easily, understanding their shopping patterns and being able to provide their needs in accordance.

Changes in the roles of key players.

The emergence of e-commerce has significantly changed the original roles of distribution centres, retail stores and logistics service providers, in that stores now operate as fulfilment centres where online orders are picked up or packaged for shipment to customers.

E-commerce has clearly helped businesses improve data accuracy, streamline supply chain services, reduce overall costs, and most importantly, enhance customer service.

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AMG Logistics is a Lagos-based TRACE certified logistics company. Our services include Freight Forwarding, Customs Clearance, Trucking, Distribution, and Warehousing within Nigeria.

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