IMPACT OF INTERNET ON SUPPLY CHAIN

Meaning of production supply chain

Key activities in Supply chain

Impact on Supply chain

Live exampleConclusion

A production supply chain refers to the flow of physical goods and associated

information from the source to the consumer.

Production planning PurchasingMaterials managementDistributionCustomer serviceSales forecasting

1. Cost efficiency2. Changes in the distribution system3. Customer orientation4. Shipment tracking5. Shipping notice6. Freight auditing7. Shipping documentation and labelling8. Online shipping enquiry

Cost efficiency:Electronic exchange of cargo

documentsStreamline document handling without

monetary and time investmentReduce costs, improve data accuracy,

streamline business processes, accelerate business cycles, enhance customer service

Flexibility in businessLink 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 informationPerform supply chain management and

decision support functionsEncryption technology

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

Freight AuditingReduced risk of overpaymentElimination 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 locationParcel shipments can be trackedProof of delivery quickly confirmedNegotiation 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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