E-business helps to link firms with customers, suppliers and other partners in trade. The business concept has evolved since the introduction and has even rapidly developed with the advancement in IT field. E-business refers to the transformation of business processes into ones that are more efficient. It also encompasses the acquisition of innovative concepts like dynamic pricing via auctions and directly selling to customers online. Businesses have in the recent past been striving to integrate e-business as one of their strategies.
SCM (Supply Chain Management) entails a set of activities used to integrate manufacturers, suppliers, stores and warehouses adequately. It enables the production and distribution of merchandise in right quantities, location as well as time. Hence, it helps to minimize costs and satisfies service requirements. SCM entails integration of activities both within and between firms. IT is a crucial enabler in supply chain integration (SCI). Value addition occurs at every link in the supply chain, and this also translates into profits. The levels of SCI include manual, semi-automated and fully automated SCI.
E-business makes communication very easy, affordable and helps reduce the volume of documents as was initially the case. It utilizes the fact that information management is the most significant activity in SCI. Enterprise resource planning (ERP) supports SCM through mass customization of products, processes, and data standardization, as well as integrating global business.
E-procurement is one of the e-enabled supply chain functions which go a long way in saving costs for companies through e-design that involves suppliers in specifying product development. It also facilitates e-sourcing and e-tendering which simplifies processes further. E-marketplace can be small or large scale. Firm size is one of the e-market adoption drivers.
Reducing Disruption in the Global Supply Chain
Most global companies source supplies and raw materials from different parts of the world. These forms a chain that should be continuously kept intact to ensure sustainable production. However, this supply chain can be disrupted by a number of factors including; natural disasters, political instability, poor quality, dock strikes, terrorism, cyber-attacks, and partnership wrangles. Additionally, unprecedented crisis and a weakened economy are equally threatening to the supply chain. These risks may be quite challenging but at the same time can as well be easily navigated through.
Global sourcing can in itself offer a solution to its threatening side. Hence, it is prudent to find alternate suppliers in other parts of the world. These should have attributes lacking in the lower costing suppliers, including political stability, reliable transport and power grids, moderate weather and proximity to raw materials. It would offer an appropriate alternative should the principal supplier fail. Similarly, site disruptions can be prevented by controlling facility locations in different regions, their construction, maintenance, and work and safety rules. Engineering data can also be used to protect the site from such accidents as wind, fire, water and other catastrophes. Due to the necessity, organizations can build collaborative relationships with both primary and secondary suppliers by assisting and supporting them as a way of ensuring their continued competitiveness and health. Other forms of assistance such as insurance coverage in case of a fire outbreak can be given to ensure that such suppliers are not completely grounded at any point.
Supply chain risk management can be a costly affair, especially where alternate suppliers are in developed countries with efficient infrastructure. Emerging nations, therefore, offer the best alternatives. Strategies for preventing risks can be very costly, but they still come with underlying bottom-line benefits which apparently outweigh costs. More efficient risk prevention strategies are, therefore, requisite to protect the possibly longer and tenuous supply chains.
Works Cited
Wagner, Claudia-Maria, and Edward Sweeney. "E-Business in Supply Chain Management." ARROW@DIT | Dublin Institute of Technology Research. N.p., 1 Jan. 2010. Web. 8 Dec. 2014. <http://arrow.dit.ie/cgi/viewcontent.cgi?article=1003&context=nitlbk>.
Pulevska-Ivanovska, Lidija, and Neda Kaleshovska. "Implementation of e-Supply Chain Management." TEM Journal 2.4 (2013): 314-322. Web. 8 Dec. 2014. <https://www.academia.edu/5306071/Implementation_of_e-Supply_Chain_Management>.
Banham, Russ. "Reducing Disruption in the Global Supply Chain — Managing Risk — Presented by FM Global." The Wall Street Journal - Breaking News, Business, Financial and Economic News, World News & Video - Wall Street Journal - Wsj.com. N.p., 2009. Web. 8 Dec. 2014. <http://online.wsj.com/ad/article/managingrisk-disruption>.
