TABLE OF CONTENT

Introduction

Emerging innovations are designed to change logistics and transport, which will alter the supply chain
flow as we understand it. Among the different FMCG businesses today, this transition is already
prominent. In the supply chain environment, the digitalization process is becoming a key factor. For
FMCG businesses, it is almost difficult to thrive any more without digitalization's support.

Manual labor is no longer an option with the scale of trade and rising demands for products and
supplies. Technological assistance has developed into many more complicated devices, from the most
simple to more sophisticated systems. From systems that can track moving products automatically to
technological advances have led to the emergence of a completely digitalized method that can record
warehouse items.

With on-demand warehousing and distribution, supply chain management software is rapidly evolving.
In terms of this modern workflow, emerging consumer channels often play a great role. There are
greater opportunities and flexibility when it comes to supply chain operations, due to a direct-to-
consumer change, which means that most FMCG businesses need a tool that can accommodate this
competitive climate.

SCM software acts as a personalized solution to automate the process of the supply chain of a company.
Through a setup process, all specifications can be specified to meet particular company needs, where
companies can spend less time on greater productivity. In the way logistics operations are conducted,
SCM software has now become an important component.It provides the FMCG industry with a fully
automated system, saving time, cost and ensuring the quality of their operation.

The FMCG sector will genuinely benefit from a digitalized framework which can be used to accelerate
the supply chain industry. The aim is to understand how SCM software can support and how its
implementation can act as the next standard for companies today.
E-business

E-business is short for "electronic business." As an umbrella concept, from planning to implementation,
it refers to any method of using digital information and communication technology to facilitate or
streamline business processes. It may, however, also apply to the business processes of online retailers
or other internet-based businesses more explicitly.

E Business components

1. E-Commerce requires a network of partners in the supply chain to recognize and respond to
Rapidly captured over the Internet to changing consumer demand.
2. E-Procurement enables enterprises to use the Internet for the procurement of direct or indirect
goods, as well as for the handling of value-added services such as shipping, storage, customs
clearance, payment, certification of quality and documentation.
3. E-Collaboration enables the coordination over the Internet between supply chain partners, both
manufacturers and consumers, of different decisions and activities beyond transactions.
Definition of the bullwhip effect

As a result of demand shifts as you move further up the supply chain, the bullwhip effect is a term for
understanding inventory volatility or inefficient asset allocation. As such, as the buffer rises between the
client and the producer, upstream manufacturers frequently experience a decrease in forecast accuracy.

reduce Bullwhip Effect of Inventory through e-collabaration

Among purchasing managers, production managers, logistics managers and sales managers, there may
be some inter-conflicting objectives. In performance assessment, giving more weight to shared company
goals would promote cooperation between different departments. Daily and formal inter-departmental
meetings can also facilitate the exchange of knowledge and the decision-making process.and withing
prior visibility bullwhip effects will be reduced.
E-Commerce Framework
The word e-commerce platform is connected to e-commerce application software systems. They provide
an environment to quickly develop e-commerce applications.

To adapt them to your unique requirements, e-commerce systems are versatile enough. As a
consequence, virtually all kinds of online shops are suitable for creating

An e-commerce framework must

 allow replacing all parts of the framework code

 forbid changes in the framework code itself
 contain bootstrap code to start the application
 be extensible by user-written code
E-Commerce frameworks should

 define the general program flow

 consist of reusable components
 be organized in functional domains
Benefits of EC to Organizations
Among purchasing managers, production managers, logistics managers and sales managers, there may
be some inter-conflicting objectives. In performance assessment, giving more weight to shared company
goals would promote cooperation between different departments. Daily and formal inter-departmental
meetings can also facilitate the exchange of knowledge and the decision-making process.

E-commerce allows companies to reduce the cost of digitizing data to create, distribute, procure and
handle paper-based information.

E-commerce improves the brand image of the company.

E-commerce helps organization to provide better customer services.
E-commerce helps to simplify the business processes and makes them faster and
efficient.
E-commerce reduces the paper work.
E-commerce improves companies' competitiveness. It supports supply management of
the "pull" kind. A business process begins when an order arrives from a customer in
"pull" form supply management, and it uses just-in-time production methods.
Market places in E-Commerce
1. Seller-Oriented Marketspace
A supplier-oriented model is a model in which a number of suppliers set up an
online marketplace to set up an effective platform for a large number of
companies to sell. Depending on the needs of the customers, the supplier has
the prerogative to set its own price. Suppliers will typically check for the goods or
services provided by them. In order to have success in this business model, the
trust of companies and goodwill in the market is essential.
Organizations are attempting to market their goods to others
(services).Organizations online (e-selling)
The buyer is supposed to visit the site or mall of the seller, view Catalogs, and
instructions to put
The buyer is a business that could be a frequent client of The vendors
EC is used to increase revenue, decrease sales costs, increase delivery speed
and decrease operating costs.
 2. Buyer-Oriented Market place

In order to create an effective buying climate, a buyer-oriented e-marketplace is typically

managed by a group of buyers. If you are looking to buy, you can help lower your operating
costs and obtain the best price from suppliers by engaging in this kind of e-marketplace. You
may use a buyer-oriented e-marketplace as a retailer to sell your catalog to a pool of specific
clients looking to purchase.
The demands of individual consumers revolve around a buyer-oriented model. Among
large companies with greater buying power and high volume transactions, this business
model is most common. An online marketplace is set up by the purchasing company to
accept quotations from numerous different sellers. The quotes start flowing in and the
buyer will decide which seller to deal with after careful consideration. That way, this
model enables consumers to reduce their administrative costs and get the suppliers'
best price as well.
This model helps both parties to expand their network, create alliances and ultimately
make more lucrative transactions than otherwise possible, in addition to getting buyers
and sellers close to each other. The organization will require 3rd party incorporations in
order to create a highly versatile website. Be cautious about the solution you are
selecting to create your website for b2b ecommerce.

3. Intermediary(Managed)-Oriented Marketplace (eExchange)

The marketplaces that allow buyers and sellers to interact and transact with each other are an
intermediary-oriented model. The owners of the marketplace keep a log of buyers and sellers and the
main goal is to obtain benefit from those connections.

It is typically a third-party-operated business-to-business online marketplace and is available to buyers

and sellers from a specific industry. You may sign up for these sites and access classified advertising,
request quotes, and place bids on multiple items in your industry.
SAFE payment features to Deal E-commerce Security Threats
Security is one of the primary concerns that restrict customers from engaging in e-commerce, especially
in an era of identity theft and impersonation. In particular, web-based e-commerce apps that manage
payments such as electronic transfers, online banking, or the use of credit cards, debit cards, and other
tokens such as PayPal, are a happy hacker hunting ground, rendering the app vulnerable to security
breaches.

Trojan horse is possibly the greatest danger to e-commerce, since these programs can subvert or
circumvent the mechanisms of authentication that are normally used in an e-commerce transaction.
These bugs are typically transmitted by the simplest of means, such as an email, to a remote device.

The most important component of the e-commerce security infrastructure is customer training to avoid
this form of attack. Sadly, teaching clients about safety problems is a method that is still in its infancy
stage.

However, there are many other security measures that e-commerce companies can introduce at the
internal level to provide a reliable forum for safe payment transactions.

1) The Encryption Approach

Encryption is a method of translating plain text or data into cipher text so that no one other than the
recipient and the sender can access the transmitted information. The idea of encryption is to (1) secure
stored data and (2) protect the transmission of information.

There are different forms of encryption that vary in characteristics as well as the implementation
context. Public Key Encryption and Symmetric Key Encryption, however, are the two most common
methods adopted by the e-commerce industry in general.

Two mathematically correlated digital keys, which are a private key and a public key, are used in Public
Key Encryption, while both the recipient and the sender use similar keys to encrypt and decrypt data in
Symmetric Key Encryption.

2) Secure Socket Layer (SSL)

Apparently, developed by Netscape Communications Corporation, Stable Socket Layer, or SSL, is the
most prevalent security model used globally by e-commerce companies to secure their payment
channels.

For TCP/IP connections, SSL implements data encryption, optional client authentication, server
authentication, and message integrity. The design of the protocol aims to avoid eavesdropping,
information tampering, and forgery when transmitting data between two communicating applications
over the Internet.

The Stable Socket Layer is a traditional protocol commonly adopted in the e-commerce market. It
complies with the following protection provisions:

 Encryption

 Authentication

 Non-reputability

 Integrity

“http:/” is used for HTTP URLs without SSL, whereas for HTTP URLs with
SSL, “https://” is applied.

3) Secure Hypertext Transfer Protocol (S-HTTP)

By empowering the HTTP Internet protocol with authentication, public key encryption, and digital
signatures, S-HTTP improves security over the Internet.

By negotiating encryption schemes used between a server and the client, Secure HTTP aims to make
transactions more secure. Built to coexist and seamlessly integrate with HTTP, it allows multiple
protection mechanisms to provide optimal end user security.

4) Payment Card Industry (PCI) Compliance

The Security Standards Council of the Payment Card Industry, founded in 2006, is a compliance
framework that comprehensively secures the payment system. PCI tracks online transactions and their
vulnerabilities, helping merchants protect their clients' financial data.

5) Safe Login Screen

Having the login system as stable as possible is important. Otherwise, infiltrating and getting access to
sensitive data will be easy for hackers. It is moderately easy to enforce this safety protocol, but it can
ward off many security threats effectively.
6) Digital Signature

The digital signature is an encrypted message capable of authentication with a specific private key. The
signature is connected to the data in such a way that the electronic signature is immediately invalidated
in the event of the data being changed.

Securing the protection and confidentiality of payment details for consumers is a serious problem. The
above guidelines would help e-commerce companies reduce the risk of security breaches, raising their
trust in the online expansion of companies.

7) Secure Electronic Transaction (SET)

In cooperation with MasterCard and VISA, the SET specification guarantees the safety of all parties
involved in an e-commerce transaction. It is designed specifically to perform essential functions, such as

Authentication of cardholders and merchantsEnsuring data and payment data confidentialityDefining

protocols and providers of electronic protection services

Safe Electronic Transaction allows for interoperability across different platforms and operating systems
between applications. The following components are incorporated by Collection

 Digital Wallet Software − Secures cardholder’s online purchases via

point and click interface.
 Merchant Software − Helps merchants interact with financial
institutions and customers in a secure manner.
 Payment Gateway Server Software − Provides support for merchant’s
certificate request, enabling an automatic and standard payment
process.
 Certificate Authority Software − Assists financial institutions issue
digital certificates to merchants and cardholders to register for secure
electronic commerce.
E-Procurement Tools

1.  Online or electronic catalogue (e-catalogue)

A digitised version of a supplier's catalog is an online catalogue. Both consumers and suppliers benefit
from it in that they:

a. Facilitating two-way real-time contact between buyers and sellers.

b. Enable closer buyer-supplier relationships to be formed because of enhanced vendor services and by
educating customers about goods or services they would otherwise not be aware of.

c. Enable suppliers to respond rapidly through price changes and repackaging to market conditions and
requirements.

d. The time lag between the generation of a requisition by a catalog customer and the purchase order
problem is practically eliminated as:

i. Authorisation may be done online, if necessary, and informed and checked by email.
ii.   Users are allowed to create their own procurements (subject to restrictions on value
and items), and the order can be created automatically without the Procurement
feature interfering.

Three kinds of e-catalogue exist:

a.  Sell-side catalogues
b.  Buy-side catalogues
c.  Third-party catalogues

2.  Reverse auctions
A reverse auction is an online auction between one purchasing company and a group of pre-qualified
suppliers, in real time, at a decreasing price. The bidding process is complex, where suppliers compete
for business by bidding electronically using advanced software against each other. Information on the
status of their bids is provided to suppliers in real time and the supplier with the lowest bid or lowest
overall cost bid is generally awarded to the company. A Penang multinational corporation that chooses
multiple local suppliers to participate in the e-auction or e-bid of its packaging products may be an
example of this auction.

The company offering the lowest price will be invited to submit the quality approval of its sample
product. Subject to this sample acceptance, the contract will be awarded later. These e-auctions,
however, are still not common among smaller companies as the implementation of the system is very
expensive.

3.E-Sourcing or ‘RFX’ E-Procurement

When the buyer knows exactly what they need, and just asks for the price quote, RFQ is used.

When the buyer has a problem, RFP is used but does not know how to solve it. Then they ask suppliers
to come up with various ideas (i.e., proposals) and maybe specify the cost estimate that accompanies
them.

In supplier market analysis and to begin the process of supplier selection, RFI is used. By conducting a
product qualification and site visit, the supplier selection process is concluded.
Blockchain Terminology
Blockchain is a technology that can allow authenticated data communication between each player in a
supply chain without the intermediation of a trusted central organization. By verifying and adding data
in real time, blockchain can increase transparency across a supply chain.

Technology function and Characteristics

Data held in the blockchain is immutable and, as described above, can not be easily modified. The
information is also applied to the block after everybody in the network accepts it and thus allows safe
transactions. Those who verify and connect the transactions to the block are called miners.

As well as an open database, the blockchain is decentralized. The ledger is the record of the transactions
made and is thus called an open ledger since it is available to all. No person or organization is in charge
of the transactions. Each and every blockchain network link has the same copy of the ledger.

The blockchain is decentralised as well as an open ledger. The ledger is the record of the transactions
made and, because it is accessible to everyone, is thus considered an open ledger. There is no person or
agency in charge of the transactions. Each and every link to the blockchain network has the same ledger
copy.

Benefits of blockchain
Without having to be reliant on third parties, the blockchain technology allows for verification.

The blockchain technology allows for verification without having to be dependent on third parties.

To secure the data ledgers, it utilizes secured cryptography. Also, to complete the cryptography process,
the current ledger depends on its adjacent completed block.

After the process of full confidence verification, all transactions and data are attached to the block.
There is a consensus about what is to be reported in the block by all the ledger participants.

In chronological order, the transactions are registered. Many of the blocks in the blockchain are also
time stamped.

Any ledger's origin can be traced to its point of origin along the chain.

The transactions which occur are transparent. The transaction may be interpreted by individuals who
are granted authority.

Case studies: Supply chain transparency

Blockchain in shipping logistics

A shipping firm used Blockchain to control freight tracking, offering a system for tracking products
delivered around the world to consumers, sellers, and officials.

Border-traveling goods which require inspection and approval by up to 30 parties before arrival,
generating a large amount of documentation and creating opportunities for fraud at multiple points in
the process, leading to maritime fraud worth billions of dollars each year.

The shipping company, by cooperation with the customs authorities, simplified the approval process by
maintaining a secure record of transactions and approvals and reducing the time taken to transport
goods.

Similar use cases show that Blockchain has the ability to minimize shipping administrative and logistics
schedules by more than 85% from more than a week to less than a day.

Blockchain in food production

As part of an attempt to increase availability, a startup utilizes Blockchain Transparency of the chain in
the second-largest traded commodity Globe-coffee beans.

The business uses a distributed, decentralized real-time protocol for Mobile transactions, documenting
transaction data and enabling Both parties concerned have access to the payment record at any time.
When coffee beans advance through the supply chain, the scheme improves transparency and helps
ensure that farmers earn sufficient fair-trade payments.

Blockchain in pharmaceuticals

Provenance (tracking of properties through a supply chain) within the pharmaceutical industry is
another promising field for Blockchain solutions. During the production process, monitoring active
pharmaceutical ingredients is challenging and faces intensified challenges from the prevalent and
lucrative counterfeit drug operations around the world.

Another promising area for Blockchain solutions is provenance (tracking of assets across a supply chain)
within the pharmaceutical industry. Monitoring active pharmaceutical ingredients is difficult during the
manufacturing process and faces increased threats from the prevalent and lucrative counterfeit drug
operations across the globe.
Conclusion

In general, companies today must constantly aim to produce the next best thing consumers want
because customers continue to want their goods, services, etc. to be better, quicker, and cheaper on an
ongoing basis. Businesses need to adapt to the new types of customer needs and developments in this
world of new technology, since it will prove crucial to the success and sustainability of their business. As
technology continues to evolve and is something that should be taken advantage of and incorporated, e-
commerce is constantly evolving and becomes more and more important to companies.

The possibilities have been limitless for both companies and customers since the beginning of the
Internet and e-commerce. Creating more profit and advancement prospects for companies, thus
creating more customer choices. As everything else, e-commerce, however, has its risks, including
market uncertainties, but nothing that sound decision-making and business practices can not overcome
or prevent.

When beginning an e-commerce company, there are many variables and factors that need to be
weighed and agreed upon. Some of them include: e-commerce forms, marketing campaigns, and many
more. If the right strategies and procedures are adopted, a company will flourish with a lot of success
and profitability in an e-commerce world.