The Impact Of Internet On Supply Chain Strategies

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The Impact of the Internet on Supply Chain Strategies The Internet has played a major role in the changing of supply chain strategies. The growth of the Internet over the years have presented supply chains with various opportunities for service improvement and cost reduction. These opportunities can include: • On-line vendor catalogs available to customers from which customers can find, select, and order items directly from suppliers without any human contact. • The ability to track shipments using several modes including rail, air transport, and truck. • The ability to provide 24-hour/7 days a week worldwide customer service. • The ability to contact vendors or buyers regarding customer service problems from late arrival, late…show more content…
Inventory management has been improved by the Internet in terms of the ability to communicate stock-outs by customers to vendors and the ability to notify stock-outs by companies to the customers. Electronic Data Interchange (EDI) has also changed the way companies get information to their customers. Before the Internet, EDI took a longer time to be implemented into the supply chain. EDI is the computer-to-computer exchange of business documents between companies. The Internet has affected inventory management mostly by its ability to allow companies to be more proactive in the management of inventory systems. This can be noticed mostly by company’s ability to notify its customers of order shipping delays and inventory emergencies. Order processing has become probably the most popular use of the Internet in supply chain. The Internet is frequently used to place orders and check orders status. A very large percentage of companies use the Internet for this purpose. Companies save in the reduction of paperwork that is involved in the traditional order processing system. Another advantage of the Internet in the ordering process is the speed in which an order can be processed. This faster processing time has led to a reduction in order-cycle time, or the time between when a customer places an order until the time the customer receives the order. This time bas been cut by at least one-half the time. The current use
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