How the introduction of E-Commerce has change the supply chain management business model/s. explain one model which could be used to explain or help instigate this type of E-Commerce

Nothing has rocked the field of supply chain management like the appearance of the Internet (e-commerce). Indeed, the internet has emerged as a most cost-effective means of taking supply chain combination. e-commerce can be defined as marriage between the internet and supply chain management. As of normal, marriage brings many changes between the relationships. In this case, supply chain has transformed many changes from manufacturing to customer management and product design. (Eric, Johnson M, and Whang Seungjin, 2002)

The emergence of e-commerce has changed the relationship between customers and retailers. The consequences of e-commerce over logistics are very much understood. As e-commerce becomes more accepted and much used, it requires to change and adapt new distribution system. The larger retailing stores is being challenged by a new supply chain process of e-commerce and the new system relies on the warehouses located outside the city area from where large numbers of undersized parcels are shipped by trucks or courier services to separate online customer. Where as in the previous (traditional) system, the shopper was bearing the costs of moving goods from retail stores to home, but with the emergence of e-commerce this segment of supply chain has to be incorporated in the freight distribution process. (Dr. Rodrigue J, 2011).

Example of Taditional and E-Logistics system(The Geography of Transport System,2011)

According to European logistics Hub, e-commerce is getting more and more popular every year. They expect the worldwide e-commerce to grow by 19% in year 2011. More and more people find easy to shop on one click and receive the product at home door.

We can conclude that the e-commerce has affected logistics industry in three main ways. First: it has made the distribution system more complex, second: it has changed the B2B segment to B2C market segment and third: the customer services have become more important in e-commerce. (Patrick, 2011)


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