Supply chain is the entire process beginning with procurement of raw materials, production and services at the manufacturing plant to promotion and distribution of products, and finally taking it to the ultimate consumers for the final consumption. Everything is included in the supply chain. Internet has been playing a tremendous role in Supply Chain Management. But how has been the role of internet in supply chain industry?
Role of internet in supply chain industry
Internet has brought massive changes in supply chain activities. It opened the door of enormous advantage and potentials for entrepreneurs and corporate officials who are directly or indirectly related to supply chain to conduct the supply chain functions much more smoothly and comfortably.
Previously it was difficult for buyers and manufacturers to connect and communicate with the suppliers. It took longer for each party to contact with the other via postal business mails. Except for the very few globally and internationally recognized postal services, the success of communication was uncertain and long distance telephone calls were very expensive. But now internet has made communication unimaginably easy.
Previously, the buyers would ask the foreign suppliers to send them their company brochures. Then the supplier would parcel a copy of brochure. Now each party gets to know about the other from their websites. Both parties can easily communicate with each other about their business deals through emails and finalize their deals.
This has reduced the cost of communication to a huge extent. The supplier sends an email notification to the buyer after the shipment of goods. The buyer can make payment via online bank transfer.
Social networking sites and giant wholesale marketplaces such as alibaba.com are connecting all parties in moments. Product promotion is done via social networking sites and via contextual and other kind of advertisements. It is not only helpful for expanding business, but also helpful for branding, marketing and promotion of products to the specific target audience. In the same time, it takes less effort, less cost, and less time.