Effects of E-commerce to Supply Chain Management - MyAssignmenthelp

Question: Write about theEffects of E-commerce to Supply Chain Management. Answer: Analysis Evaluation According to the case study rationale, Heinekens' marketing, competitive strategy as well as the sharing of consumer information seems very important to the supply chain management and supply chain partners. However, the information needed has to be obtained from demand data collection in the most effective and affordable manner from the market demand which always fluctuates (Akhter 2007). Most industries improve their supply chain performances through innovations that would reduce the marketing gaps from production to the market where the products are delivered. Improvement the supply chain performance would make many businesses realize the need to extend to form inter-business process engineering, which is also called business network redesign as partners (Cigan 2014). This collaboration forms the basis of exchange among the supply chain partners to redesign the products through e-commerce using wide area networks of computer connections. Apparently, Heinkens' distributors and sale representatives from different supply chain businesses are able to meet and plan business in three months prior before the actual transactions and delivery of goods. However, their speculative transactions would face challenges as they could not predict future changes that would affect the market demands. Harsh climatic changes, changes in tastes and preferences of the market demand and legal policies affecting the promotion are such challenges they face (Hansen 2005). To reduce the effects of long periods of business transactions, the business partners and sale managers came up with fast method of transactions using fax and email to place orders to partners far away distant apart (Hansen 2005). This time therefore, would be reducing up to three days per month to place order. In fact, the Heinekens' time in marketing gaps is therefore, seems to be reduced by a large range, which previously 10 to 12 weeks to lesser days in a month.This creat es flexibility and able to adapt to changes in the market demands. Requirements Validation In respect to the Heinkens' productivity, the increase companys profits and market shares, managers develop new business methods to facilitate the process. The most effective way to increase the market demand is by reducing the time gaps from production to the market to reach the consumers (Brand 1991). Therefore, managers should come up with the solution to ensure the products are readily available at the right time and place by initiating proper channels of distribution. Ultimately, when the company is located far miles away from the source of raw materials and the market, there are no central collection points. To facilitate and plan the production and delivery, they require more labor intensive methods which is difficult to control and coordinate since business orders would come at different times of production process. To match the marketing demand, more accurate and reliable data would be needed to facilitate collection and analysis of product consumption (Cigan 2014). This mis match of production and consumption would cause under stocking in the parts of distributors as consumption could be higher the stock available. Furthermore, new smaller firms in the local market could reduce the market demand deficiency by producing some products but at lower rates as compared to larger firms. Therefore, relatively larger firms need to develop strategies of forecasting, processing and delivering orders faster than their current capacities since their they have localize market shares and distributors would not incur high costs in distribution. The formation of internet based advertisement would reduce the marketing gaps and companies would interact directly with the consumers to sell and deliver fresh products (Brand 1991). This technology is strategic method to be embraced by other trading partners and internet business hub created would replace old information with new information that match the demand of the consumers. The individual performance can be generated by viewing past sale records and trends and location. A company therefore, can place orders or check their sale performance using their portal pas sword and ID to log in and make changes where necessary. Requirements Management According to the case study, Heineken, the productivity through the use of e-commerce, a distributor can place order and make delivery inquiries. This would greatly improve connection and communication between the company, distributors and the consumers in faster and more efficient way. The Heinekens' managerial skills propells the production and marketing plan, which is achievable and easier. In order to match the market demand, the managements' protfolio has reduced marketing gaps between production and the market would be reduced (Akhter 2007). The priorities of developing e-commerce is to reduce market deficiencies and do market research to produce more quality products that meet the tastes and preferences of consumers. However, other competitors can offset this strategy by rebranding and re-packaging their products to meet the market demand. To make the business more competitive and more efficient, using Remote Location Filing Program to import more products from other countries and also facilitate custom duties at the port during the delivery process. This is possible the use of e-commerce portal created. They would also reduce the procurement costs, They would also reduce the time in raw materials delivery and the production and ensure stock stability as distributors would be more comfortable in dealing with full stocks rather than dealing insufficient stocks delivery from smaller firms (Brand 1991). Therefore, planning for orders would be greatly reduced from three days to 45 minutes. References Akhter, S 2007, Globalization, expectations model of economic nationalism, and consumer behavior.Journal of Consumer Marketing, 24(3), pp.142-150. Brand, C 1991, Reversal Theory: Motivation, Emotion and Personality.Personality and Individual Differences, 12(9), p.976. Cigan, V 2014, Relationship between students motivation and their socio-demographic characteristics.Linguistica, 54(1), p.11. Hansen, T 2005, Perspectives on consumer decision making: an integrated approach.Journal of Consumer Behaviour, 4(6), pp.420-437.