A Term Paper

on
“Impact of Information Technology on the Supply Chain Function
of E-businesses”
Course Title: Contemporary Issues of Management
Course code: MGT-4104

Submitted to:
Nigar Sultana
Assistant Professor
Department of Management Studies
Bangladesh University of Professionals

Submitted by:
Mourin Rahman 16241022
Abdullah Md Taqi Ud-deen 16241024
Hasibur Rahman Khan 16241030
Sazzadul Islam 16241060
Tariq Juhair 16241062
Abu Bakar Siddique 16241082

Date of submission: 08/05/2019

Executive Summary

The aim of the study was to identify the impact of information technology in supply chain
management within an E-business. The paper was built upon data collected from 3 E-businesses-
Daraz, Pickaboo and Shopway. The results from the analysis revealed that there are impacts of
applying information technology in supply chain activities such as cost reduction; increasing the
efficiency in ordering process, Customer Satisfaction and better employee productivity. Based on
the findings, the study recommends that, training should be given to the staff and cross functional
teams should be built which will complement IT and support systems to improve the overall
efficiency of the supply chain. Hybrid Electronic data interchange is also important for better
connection and communication with business partners and suppliers and with the total integration
it will lead the path to sustainable progress for these types of organizations.
 Table of Contents
1.0 Introduction ............................................................................................................................. 1

2.0 Objective of the study ............................................................................................................. 2

3.0 Methodology ............................................................................................................................ 3

3.1 Sources of Data ............................................................................................................. 3

3.2 Sampling Procedure ...................................................................................................... 3
3.3 Sample size ................................................................................................................... 3
3.4 Research Instruments .................................................................................................... 3
3.5 Analysis and Presentation of Data ................................................................................ 3
4.0 Limitations of the Study ......................................................................................................... 4

5.0 Literature Review ................................................................................................................... 4

6.0 Theoretical Background ......................................................................................................... 5

6.1 The Evolution of Supply Chain Management .............................................................. 5

6.2 The Impact of E-Business Technologies on Supply Chain Operations ........................ 7

6.3 Production and Sales Volatility .................................................................................... 8

6.4 Inventory ..................................................................................................................... 10

6.5 Logistics ...................................................................................................................... 11

6.6 Procurement ................................................................................................................ 12

7.0 Discussion & Analysis ........................................................................................................... 13

7.1 Macroeconomic Evidence ........................................................................................... 13

7.2 Types of software ........................................................................................................ 15

8.0 Findings.................................................................................................................................. 17

8.0 Recommendation................................................................................................................... 24

9.0 Conclusion ............................................................................................................................. 25

References .................................................................................................................................... 26

Appendix ...................................................................................................................................... 28
 “Impact of Information Technology on the Supply Chain Function of E-
businesses”

1.0 Introduction

Information Technology (IT) in supply chain management (SCM) has gained its importance
recently due to its capability to reduce cost and increasing responsiveness in the supply chain.
The use of IT is considered a prerequisite for the effective control of today’s complex supply
chain. And it is further justified with the trend of globalization as business spans beyond borders
and the need to manage it centrally. Throughout history, innovation and the adoption of new
technologies have led to productivity improvements that generate stronger economic growth
and higher living standards. In business, technological innovation over the past century has
focused on the design and manufacturing processes that are used largely within individual firms.
At the same time, the process of physically moving raw materials, components and products
through a firm’s value chain comprises a significant portion of the total cost of goods in many
industries. Mechanized transportation, telecommunications networks and integrated
information systems have significantly helped supply chain managers improve their ability to
plan, order, monitor, and evaluate their processes. In particular, new information technologies
and e-business solutions have transformed supply chain operations from mass production to
mass customization.

This paper assesses the impact of these innovations on economic productivity. Using various
empirical data, we trace the long-run economic impact from improved supply-chain management
practices brought on by systems that move more accurate information faster and more cheaply.
Our focus is on the macroeconomic benefits resulting from the adoption of supply chain
management techniques as they have evolved from simple production and material
requirements planning to today’s real-time performance-management information systems
using advanced e-business technologies.

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Therefore, effective SCM technology adoption allows rich information exchange, quick and
reliable data availability and easy access to business partners. In addition to excellence in
business processes and focus on industry specific markets, E-Commerce is considered to be the
new competitive weapons for the logistics industry. A company’s success is depending upon the
use of internet technologies that are aligned with its organizational goals. In facts,
institutionalizing a “click and brick” strategy is seen as a. key to company’s overall success in
leveraging digital age technologies. The E-Commerce adoption is said to be a contributor to the
advancement of business processes and has become a crucial consideration in logistics field
nowadays. It seems to be a considerable importance as logistics is seen as the backbone of E-
Commerce operations. Currently top e-commerce business in Bangladesh are- Rokomari.com,
Daraz.com.bd, Pickaboo.com, Bagdoom.com, Othoba.com, Priyoshop.com.

Key words: Information Technology, E-business, Supply chain management

2.0 Objective of the Study

The objective of the study is to:

• Identify if e-commerce companies are using information technology in their entire supply
chain.
• Identify the key fields in which E-business companies are utilizing information technology
and support systems
• Analyze the impact of information technology on the supply chain function of an E-
business.

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3.0 Methodology

3.1 Sources of Data

In this research, both primary and secondary sources were used to collect information. Relevant
journals, research paper and websites were used to collect secondary data. For primary data,
practical knowledge, observations and interaction with the employees through the use of
questionnaire played a big role.

3.2 Sampling Procedure

To choose our sample, since we had a lot of constraints, we used convenience sampling. Although
the results of the paper would be more accurate if we could have used random sampling, we
could not do it due to shortage of time and resources.

3.3 Sample size

First, we looked in to 3 companies, “Daraz”, “Pickaboo” and “Shopway”, which are three E-
business companies operating in Dhaka. Then for sampling we collected information from 15
employees who filled up our questionnaires out of which 5 were from Daraz, 5 from Pickaboo
and 5 were from Shopway. All three companies operate in the same industry but in different
scales as Daraz and Pickaboo are giants and Shopway is a new and upcoming company.

3.4 Research Instruments

For our research instruments, we used the traditional ones. Since closed questionnaires are easily
analyzed, we decided to use it. We also interviewed some of the employees to know about what
IT and support systems they were using and get a general idea about the entire operation.

3.5 Analysis and Presentation of Data

For analysis, we used simple analytical tools such as mean and frequency on Google Form and
Excel software. After doing so, we presented our data using Pie Charts and graphs.

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4.0 Limitations of the Study

• Time constraint was the main limitation. Due to lack of time couldn’t gather more information.

• Communication with central team is difficult.

• Some operational strategies are yet not to disclose to anyone.

5.0 Literature Review

Now-a-days internet become very close to the people. People often choose to buy products from
online rather than visit to the physical market. It saves time and money in both ways. A recent
survey shows that Bangladesh is an emerging market for the online sectors, this sector is one of
the booming sectors and it has a market worth around 2 billion BDT. This sector is such a big
platform where suppliers and customers come at the same place to purchase and sell in visually
and get the physical product. A customer-oriented ecommerce can stand right based on its
efficient supply chain process also sends his voice to the general mass. For the growth of
ecommerce efficient supply chain management is important factor. Ecommerce websites are
providing more and more purchasing options to their consumers day by day. In the supply chain
management practice, in order to maximize its own interests and maintain the competitive
advantage, each node enterprise on supply chain have difficult to carry out effective cooperation.
So as to arouse the enthusiasm of each node enterprises on supply chain and improve supply
chain performance, establish a reasonable incentive mechanism of supply chain is an effective
way. (Yu, 2017) The Internet has allowed customers to price and choose the most diverse services
and products around the world, instantly. E-commerce and global competition have made
companies think strategically about their processes in order to manage relationships with
customers and suppliers. (Gilberto, 2014)

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6.0 Theoretical Background

6.1 The Evolution of Supply Chain Management

Despite the increased attention paid to supply chain management in recent years, including
university courses solely devoted to the topic, it is not a new business discipline. Supply chain
management is as old as trade itself. We view the purpose of supply chain operations as getting
the right resources and products to the right places at the right times, while yielding the highest
possible profits. The evolution of supply chain management practices can be partitioned into four
periods: the industrial revolution (1776-1900), the mass production era (1901-1974), the lean
production/quality control era (1975-1995), and the mass customization era (1996- 2010). During
the industrial revolution, many businesses arose from the division and specialization of labor and
from expanded markets and opportunities arising from the development of electricity, railroads,
transportation, and communications. In the mass production era, businesses adopted and
utilized capital equipment to improve production operations, focusing their efforts on defining
and improving specialized tasks through scientific management methods, operations research
techniques, and mass-production moving assembly lines.

In the lean production/quality control era, businesses focused on improving internal processes,
particularly by monitoring production methods and implementing lean production ideas such as
just-in-time inventory systems, total quality management (TQM) programs, and enterprise
resource planning (ERP) systems. Finally, during the mass customization era, firms began to
develop and implement e-business technologies, such as the Internet and e-commerce systems,
and started to improve service and delivery processes by integrating internal systems with
external partners.

While earlier supply chain operations improvements centered mostly on internal processes,
more recent enhancements are on production and distribution channels. Improved inventory
management streamlined logistics systems, and various information sharing technologies such
as global position satellites (GPS), radio frequency identification devices (RFID), the Internet, and
other wireless telecommunications platforms all greatly improved supply chain operations. In the

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mass customization era, information replaces inventory. The collection, analysis, and distribution
of information through improved e-business technologies have become more accurate and far
less expensive. As a result, lower inventory levels can be maintained throughout the supply chain,
while still allowing producers and suppliers to meet anticipated demand. Some authors have
identified these improvements and proclaimed a New Economy (Shapiro and Varian, 1999; Baily,
2001; and DeLong and Summers, 2001), where the old rules no longer apply and where
productivity advancements brought on by new e-business information technologies have
permanently changed the way goods and services are delivered. We agree with this assessment.
The New Economy, which is perhaps more accurately termed the Real-Time Economy, allows
firms to make better decisions as information flow can be separated from the product flow,
thereby enabling better real-time analysis of business conditions.

Figure: 1 Integrated supply chain model

Supply chain management (SCM) is concerned with the flow of products and information
between supply chain members' organizations. Recent development in technologies enables the
organization to avail information easily in their premises. These technologies are helpful to
coordinates the activities to manage the supply chain. The cost of information is decreased due

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to the increasing rate of technologies. In the integrated supply chain model (Fig.1) bi-directional
arrow reflect the accommodation of reverse materials and information feedback flows. Manager
needs to understand that information technology is more than just computers. Except computer
data recognition equipment, communication technologies, factory automation and other
hardware and services are included.

Prior to 1980s the information flow between functional areas with in an organization and
between supply chain member organizations were paper based. The paper-based transaction
and communication is slow. During this period, information was often over looked as a critical
competitive resource because its value to supply chain members was not clearly understood. IT
infrastructure capabilities provides a competitive positioning of business initiatives like cycle time
reduction, implementation, implementing redesigned cross-functional processes. Several well
know firms involved in supply chain relationship through information technology. Three factors
have strongly impacted this change in the importance of information. First, satisfying in fact
pleasing customer has become something of a corporate obsession. Serving the customer in the
best, most efficient and effective manner has become critical. Second information is a crucial
factor in the managers' abilities to reduce inventory and human resource requirement to a
competitive level. Information flows plays a crucial role in strategic planning.

6.2 The Impact of E-Business Technologies on Supply Chain Operations

In order to analyze the impact of e-business technologies on supply chain operations, we break
down the supply chain into three distinct components: the business channel, the
transportation/distribution channel, and the payments channel. All three channels have been
transformed and have become more tightly interconnected by e-business technologies that bring
more accurate information to decision-makers in real time. Information can be stripped from
products/services and analyzed separately to make better decisions regarding production,
distribution, marketing, sales, etc. Each of these channels is explored in greater detail below.

The business channel of supply chain operations concerns what goods or services a business
should focus on producing and at what levels. This involves knowing your customer and satisfying

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their needs and desires. Information needed to make these decisions comes from the market as
it sends out its many signals. Producing this information entails consumer and market research,
and is often very data intensive to most accurately understand changing preferences, tastes,
styles, etc.

The transportation/distribution channel of supply chain operations addresses what is the best
way to move products to customers, essentially answering the question, “How should goods (and
services) be moved and stored?” This involves understanding the entire supply chain, from the
raw materials to the end consumer, and then taking advantage of the most efficient and effective
logistics and inventory systems. Again, information at all points along the supply chain can be
integrated using new e-business technologies, enabling better decisions regarding necessary
inventory levels and efficient movement of products.

The payments channel of supply chains pertains to the best way to move money in exchange for
delivered goods and services. The essential question addressed here is, “How (and when) should
suppliers be paid?” Knowing and understanding the supply chain operations of all the firms
involved is crucial to making the payments system flow smoothly and accurately. ERP systems
that communicate and share information in real time can lead to competitive advantages.

All three of these channels have been transformed by new e-business technologies. The effective
implementation of new information technologies allows firms to quickly collect and analyze
important information throughout the supply chain, including monitoring demand in real-time.
In short, information flows within and between businesses can be reorganized through e-
business technologies, resulting in better and more timely decisions across all channels of the
supply chain (Lee and Whang, 2011)

6.3 Production and Sales Volatility

With almost real-time monitoring of sales, shipments, quality and output, along with more
reliable performance measures of lead times, forecast errors, etc., we expect less volatility in
output when utilizing e-business systems. Information that can be shared among all points of the

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supply chain allows decision makers to better manage their specialized tasks. Without being able
to share this information quickly and accurately, information distortions often compound when
traveling further up the supply chain from customers to suppliers.

Chart 1

Reduced "Bullwhip Effect" for Durables Production Growth Volatility Closer to Sales Growth
Volatility

Chart 1 shows the 10-year moving average of the volatility of durable goods production growth
and the 10-year moving average of the volatility of durable goods sales growth. Ten-year sales
growth volatility averaged about 8 percent during the 1960s, gradually rising to an average of
around 12 percent during the 1970s and 1980s, and then fell back to the 8 percent range in the
1990s. In contrast, 10-year production growth volatility averaged between about 15 and 18
percent during the 1960s, 70s and 80s, but then fell sharply during the 1990s, finally settling in
near an average 8 percent in the mid-1990s.

This dramatic improvement in production growth volatility occurred as improved manufacturing

and quality control processes and e-business technologies brought significant improvements to
supply chain operations. Indeed, information distortions in supply chains today appear to be far
less of a problem. The traditional “bullwhip effect,” where information distortions accumulate
and compound as one travels further up the supply chain (Lee, 1997), appears to have been
tamed. In more recent years, the marriage of better production and logistics methodologies with

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e-business technologies that supply real-time information to all points along the supply chain is
plausibly at least partly responsible for the improvement.

6.4 Inventory

Unused and unsold inventory can carry burdensome costs. There are holding costs, including
warehouse and production-line storage costs, insurance costs, and costs due to obsolescence
and spoilage. At the same time, however, sufficient inventory must be maintained to meet
demand and keep the production operations flowing as smoothly and efficiently as possible.
Better information about product demand, potential bottlenecks, change orders, and the like
should allow less inventory to be needed throughout the supply chain, thereby increasing returns
to shareholders as these costs are minimized and yet, at the same time, product orders are
fulfilled. In essence, e-business technologies should allow firms to replace inventory with
information and then use the information more productively.

Chart 2

Lower Inventory Durables Inventory-to-Shipments Ratio Fell Dramatically in the 1990s

Chart 2 shows the monthly inventory-to-shipments (IS) ratio for manufacturing durable goods
from January 1959 to June 2004. As described in Siems (2004, p. 17), this ratio “provides more
evidence that firms are becoming increasingly more sophisticated in managing industry supply
chains, maintaining smoother production schedules, and holding smaller inventories and/or
accurately projecting actual demand requirements.” The IS ratio bounces along in the range of
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about 1.85 to 2.50 from 1959 to 1992. But then, roughly corresponding to the time frame of the
dramatic drop in production volatility discussed earlier, the ratio quickly improves, dropping to
about 1.40 today.

Chart 2 also shows the IS ratio and its relation to recessionary periods in the economy. During
most recessions (indicated by the grey bars), the IS ratio climbs and peaks very close to the end
of the recession. But during the 2001 recession, the IS ratio peaked at the start of the recession
and did not grow worse. Again, better and more timely information may help explain this change
in cyclic inventory levels. It appears that during the 2001 recession, producers of durable goods
had better foresight of demand prior to the beginning of the downturn and took the necessary
steps earlier in the business cycle to ensure that inventory levels did not get too high.

Additional evidence that firms have managed inventories better is provided by Koenig, Siems,
and Wynne (2002), who follow the work of McConnell and Perez-Quiros (2000). Examining time
series data from 1959 to 2001, the authors find that GDP growth volatility is about half as volatile
in the post-1983 period and that 41 percent of the reduction was from inventory investment.
While cause and effect are difficult to disentangle, new e-business technologies and better
business practices in the supply chain have plausibly contributed to the economy’s increased
stability.

6.5 Logistics

Improved supply chain operations should also result in lower relative logistics costs. Just about
everything that is consumed is taken from one place and transported to another. For tangible
goods, this movement often involves freight transportation of some kind as raw materials are
pulled from the ground, sent to facilities that convert and transform the materials into useable
goods, which are then delivered as final goods to consumers.

In the past, these logistics systems focused on stored inventory. That is, the goal was to get goods
shipped from point A to point B, and there was an expectation that inventory would need to be
stored at each delivery endpoint. But now, with e-business technologies that manage
information flow separately from the flow of goods by connecting critical points along the supply

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chain, logistics are focused more on managing in-transit inventory. In other words, now the goal
is to get the right goods shipped to the right places at just the right times, without storing much
inventory at intermediate stages.

As a result, the role of transportation providers is changing. Today, the transportation of goods
often involves great distances and requires careful coordination. According to Wilson (2004),
business logistics costs in the United States were $936 billion in 2003, roughly 8.5 percent of GDP.

Wilson (2004) concludes that logistics costs have declined primarily because inventories are
managed more efficiently, warehousing expenses have been reduced, and risks have been
minimized. Third party logistics (3PLs) providers that furnish specialized and customized end-to-
end solutions are becoming more common and are better able to respond to shifts and changes
in our global economy. In short, this sort of specialization and trade helps make industry supply
chains more efficient because these specialists can provide expertise, reach, reliability and
flexibility. This is consistent with Gupta and Basu (1989) who argue that IT-induced reductions in
transactions costs will motivate companies to parcel out or outsource, many economic activities
currently done within firms.

6.6 Procurement

As technology costs continue to fall and electronic connections between companies increase,
more firms are adopting digital technologies and eliminating paper transactions and human
contact. Automatic order placement, billing, and payment can all be triggered and performed by
a computer without requiring human intervention and/or a trail of paperwork. And such
electronic transactions can now be accomplished faster and cheaper, thereby enhancing the
efficiency of the supply chain.

All of these improvements in the supply chain⎯production volatility, inventory, logistics, and
procurement⎯have this common characteristic: they use better methodologies and new e-
business technologies to use information more efficiently and effectively. Improved information
management and better information engineering help lower transactions costs, whether in
procurement, production, logistics, or inventory. The bottom line is that new information

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technologies make more and better information available in real-time at lower costs to those
who need it. And the end result is that consumers benefit from lower prices, higher quality
products and services, and an improved variety and selection of goods.

7.0 Discussion & Analysis

From our visit we came to know about how E-businesses supply chain function works and what
types of IT tools helping them to manage the supply chain efficiently. Now we are going to discuss
it. All our sample works in Three models which are:

1. Products keeping in their inventory and when order comes they deliver.

2. They bring products from Merchants and deliver.

3. Merchants drop-off the ordered products with packaging into Warehouses and
particular businesses arrange delivery.

7.1 Macroeconomic Evidence

One place where we can identify macroeconomic benefits from the impact of new e-business
technologies on supply chain operations is on prices. In a competitive economic environment,
supply chain improvements should help lower prices by reducing production volatility, inventory
levels, and logistics costs, and by introducing more efficient procurement methods as described
above. While better monetary policy, globalization of industries and markets, and other factors
have also resulted in lower prices, Chart 4 shows that consumer price inflation for core
commodities and services has generally declined the past two decades, when supply chain
improvements were more widely adopted, particularly those using newer e-business
technologies.

Moreover, prices for core commodities have actually fallen since 2001, with the annual percent
change less than 2 percent per year since the early 1990s. In fact, core commodity prices have

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risen only 3.4 percent since 1993, averaging less than 0.3 percent per year. In contrast, core
services prices have continued to rise over the past decade at between 2.5 to 4 percent annually.

Another macroeconomic variable where we would expect to see improvement from streamlined
supply chain operations is the growth of productivity, measured as output per hour. As e-business
technologies help firms to move quickly and inexpensively collect, analyze and process
information, industry supply chains become more efficient. That is, supply chains become more
productive.

Additionally, the 2001 recession is the only recession on record since World War II where
productivity growth continued to grow by at least 2 percent annually. In other words, productivity
growth continued throughout the 2001 recession as firms quickly adjusted labor hours to the
lower output levels. Clearly, this can have a negative impact on employment, and perhaps that
should also be expected as new e-business technologies often provide labor-saving solutions to
supply chain problems.

New technology solutions frequently eliminate the need for labor, whether it is counting
inventory, processing orders, streamlining production operations, or moving stuff from one
location to another. Moreover, as information is collected and processed in real-time, businesses
have a better understanding of the demand for their products and can take necessary actions
quicker to reduce production output (and labor resources). And there are signs that these
benefits are spreading to the service sector, whose productivity growth has recently picked up,
particularly in retail and wholesale trade (Alm, Cox, and Duca, 2004).

The good news is that, in the end, stronger productivity growth directly translates into higher
standards of living for an economy’s citizens.

Many factors can influence macroeconomic variables such as inflation, employment, output, and
the like. Higher productivity growth, more stable economic output, and lower inflation might
result from good monetary policies, better fiscal policies, or luck (fewer external shocks). We
believe, however, that the impact of e-business technologies on supply chain operations should
not be overlooked. The macroeconomic benefits highlighted above might also partly stem from

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better management of technology, supply chain operations, and risk. Moreover, the effective
implementation of e-business technologies in a competitive environment that demands
economic efficiency in order to maximize shareholder wealth should lead to stronger productivity
growth.

7.2 Types of software

They maintain different software for different purposes. Those are-

1. Order Management System (OMS): Order Management system mainly used by the operations
team and customer service team as well. IT module help to keep inventory, manage orders,
manage warehouse (both single & Multiple), return management, cross dock and drop ship. For
customer service team it used for to confirm customer order and solve the customer query by
managing others department by it.

2. Hub Management Tool (HMT): HMT is mainly used by the operations team to track the
product both Market Place Cross-Docking (MPCD) & Market Place Drop-Shipping (MPDS) inside
the warehouse. It is useful to dispatch the product under right point and to make it deliver to
right delivery station.

3. Seller center: It a module through which the merchant gets registered. Enlist their product on
website, change price, assort products and manage their online store. On the other hand, the
vendor manager maintains the sales, update the data and analyze different types of function and
situation. Also warehouse team and content department works on seller center.

4. Delivery Module (DM): This module helps the operation team to track vehicles, orders and
parcels, manage inbound and 3pl delivery partners. This module is used by finance team as well
to track down the daily delivery and collection reports.

5. Cloud network: Each of our sample maintains a cloud network, running its applications
virtually for storing and backing up information.

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From analysis through our questionnaires, we found out that these companies have a common
theme in operating and almost use similar IT infrastructure and support systems to conduct their
operations throughout the entire supply chain.

We see that, in terms of every aspect, as illustrated in the findings, all three companies are
positively impacted by the use of various IT and support systems. The field that sees the
maximum impact in terms of improved performance is the integration of IT for billing and
payments. Facilitating online payments and billing through software has significantly reduced the
time it takes for transactions to come through. Aside from these, we see huge positive impacts
in logistical management, improving order accuracy, managing Inventory efficiently and reducing
procurement costs. But we see that global procurement and communications are two fields in
which IT can be further strengthened for these companies as these fields have seen the lowest
impacts.

Our open-ended question within the questionnaire, about the capability of employees to deal
with the IT infrastructure and support systems reveals the only flaw. The absence of key
individuals due to any reason, causes serious inefficiencies within the organizations which means
that there is a gap in training and employees are not versatile enough to fill in those positions.

Overall, we have analyzed that, despite the minor shortcomings, these companies have well
integrated IT infrastructure with their supply chain which has an encompassing effect on all their
activities. Their usage of such technology is what is helping them stay ahead of their competitors
as well as have a sustainable future of profitability. Our analysis is backed further by the finding
below.

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8.0 Findings

We have visited three different E-businesses around Dhaka city. We closely observed and
interviewed the employees. After elaborate analysis, we have found that, IT has several impact
on supply chain functions. The results are shown below-

1. Does it impact logistics management?

2. Does it lower procurement cost?

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3. Does it improve order accuracy?

4. Does it help to unload excess inventory?

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5. Does it help for dynamic and global outsourcing?

6. Does it help to reduce time between billing and payment?

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7. Is this an efficient way of exchanging information?

8. Does it increase employee productivity?

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9. Does it help to improve product/market strategies?

10. Does it lead to better inventory detection?

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11. Does it help to improve customer satisfaction?

12. Does it improve hub assortment?

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13. Does it help to reduce stock?

14. Does IT lead to faster market of products?

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 15. Does IT help efficient promotion of products?

9.0 Recommendation

In order to be successful there is no alternative to use of IT. These companies have done it well,
but more focus should be given on those who maintain the IT department. It was the only
significant sector that we found was lacking and the absence of any of the key individuals usually
lead to inefficiencies based on our interviews. Thus, we recommend, proper training should be
given to employees on how to use IT tools for better, efficient management of supply chain.
Building a cross functional team will complement the better SCM and customer satisfaction. All
the companies must also ensure that their suppliers are using proper IT and for better
communication with suppliers and vendors, the companies should use hybrid Electronic Data
Interchange. Hybrid EDI refers to computer-to-computer exchange of business documents such
as purchase orders, invoice, shipping bills, and communicate with one another in a standard
format. EDI describe both the capability and practice of communicating information between
organizations electronically instead of traditional form of mail, courier, & fax.

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9.0 Conclusion

World is shrinking day by day with advancement of technology. Customers' expectations are also
increasing, and companies are prone to more and more uncertain environment. Companies will
find that their conventional supply chain integration will have to be expanded beyond their
peripheries. The strategic and technological innovations in supply chain will impact on how
organizations buy and sell in the future. However clear vision, strong planning and technical
insight into the Internet's capabilities would be necessary to ensure that companies maximize
the Internet's potential for better supply chain management and ultimately improved
competitiveness. Internet technology, World Wide Web, electronic commerce etc. will change
the way a company is required to do business. These companies must realize that they must
harness the power of technology to collaborate with their business partners. That means using a
new breed of SCM application, the Internet and other networking links to observe past
performance and historical trends to determine how much product should be made as well as
the best and cost effective method for warehousing it or shipping it to retailer as well as
maintaining capable human resource to pilot these programs through proper training and
development will pave the path to Sustainability and success in the long term.

While improved supply chain management principles combined with new information (e-
business) technologies may not have been given much macroeconomic attention in the past, its
effective implementation can help firms reduce costs, increase revenues, boost efficiencies, and
expand market opportunities. We find evidence that these improvements have resulted in a
reduced bullwhip effect (production volatility that more closely resembles sales volatility), lower
inventory levels, reduced logistical costs, and streamlined procurement processes. Taken one
step further, we show evidence that strongly suggests that these improvements are linked to
macroeconomic benefits such as lower inflation, more stable economic output, higher
productivity growth, and better standards of living. Furthermore, these improvements have
occurred even in the face of powerful economic shocks, including the post-Y2K stock market
bubble and IT investment bust, the 2001 recession, the September 11 terrorist attacks, corporate
governance scandals, and rising energy costs, among other developments.

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References

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Appendix

Questionnaire for Survey-

“Impact of Information Technology on the Supply Chain Function of E-businesses”

Name of the organization:

Number of Employees:

Number of Hubs:

Respondents Name:

Designation: Tenure: Department:

1. Which of this following software do you use? (Check Multiple)

• Order Management System
• Hub Management Tool
• Seller Center
• Delivery Module
• Transaction Processing System
• Executive Support Systems
• Management Support Systems

2. Do you think the employees are well trained enough to handle the existing IT
infrastructure and support systems?
• Yes
• No

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 3. On the Likert scale, please specify the degree to which you think the Software’s, IT and
Support Systems impact the specified fields of the supply chain within your
organization:

Question Strongly Disagree Neutral Agree Strongly

Disagree Agree

Improved logistics
management

Lower procurement costs

Dynamic and global sourcing

Reduced time between

billing and payment

Improved order accuracy

Unloading excess inventory

Faster time to market

Outs reducing stock

Efficient exchange of
information

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 Increased customer
satisfaction

Increased employee
productivity

Helped to improve
product/market strategies

Better inventory detection

Improved store assortment

Efficient promotion

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