Impact Of Internet On Supply Chain

IMPACT OF INTERNET ON SUPPLY CHAIN  Meaning of

production supply chain  Key activities in Supply chain  Impact on Supply chain  Live example  Conclusion

A production supply chain refers to the flow of physical goods and associated information from the source to the consumer.

Production planning Purchasing Materials management Distribution Customer service Sales forecasting

1. Cost efficiency 2. Changes in the distribution system 3. Customer orientation 4. Shipment tracking 5. Shipping notice 6. Freight auditing 7. Shipping documentation and labelling 8. Online shipping enquiry

Cost efficiency: Electronic exchange of cargo documents Streamline document handling without

monetary and time investment Reduce costs, improve data accuracy, streamline business processes, accelerate business cycles, enhance customer service

Flexibility in business Link between customers and

distribution centers is closer. Customers can manage complex movement of products and information

Access rate information, place delivery

orders, track shipments and pay freight bills Builds companies business and enhance shareholder value Availability of detailed information and conduct of business-self service systems for customers

Real time information Perform supply chain management and

decision support functions Encryption technology

Automation: electronic transfer of packing list in advance Record of details of each pallet, parcel and item being shipped

Freight Auditing Reduced risk of overpayment Elimination of paper work

Reduces manual intervention- the standard

bills of lading, shipping labels will be automatically produced. Specialized export documentation. Paper work is reduced- Increases efficiency

Instant information from any location Parcel shipments can be tracked Proof of delivery quickly confirmed Negotiation of rates

 Hilton Hotel implemented an electronic ticketing scheme

through their website in order to make an easier booking of rooms and meeting facilities (2000). According to, Hilton Hotel’s senior VP for e-business and distribution, the internet facilitates the hotel’s interaction and helps in the transformation of customer-business relationship.  Adlon Hotel in Stockholm increased its clientele by maintaining

a website that caters to specific international languages such as German, French, Italian, Spanish, Portuguese, and Scandinavian languages and English (1998). Also, the application of multilingual website of Adlon Hotel reduced the amount of advertising using the mainstream media. As to this case, international advertising is cost effective and at the same time extensive in scope. Just by taking the pains of translating one single page of Adlon Hotel’s website and promoting these language gateways into the site, the marketing operations significantly improved ( 1998)

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