E-commerce reflects the changing nature of the supply chain
More signs are emerging that ecommerce is strengthening its position in the global supply chain.
Ecommerce emerging as key part of global supply chain
Tuesday June 07 2011 by Catherine Ferguson
Ecommerce is playing an increasingly important role for businesses, reflecting the changing nature of supply chain across a range of sectors.
This week saw UK-based Electrocomponents – a subsidiary of Allied Electronics and RS Components – announce record profits and revenues across the 32 countries it operates in.
Ecommerce sales alone grew by 37 per cent, no doubt helping to boost international business by 70 per cent across the group.
Online revenues were boosted by 80 per cent too, demonstrating the ongoing success of the internet as a B2B supply chain conduit and strengthening the role of internet consultants across the board.
Group chief executive Ian Mason went as far as to claim that ecommerce is transforming the business, which has prompted the organisation to “enrich the online customer experience”.
Overall, the company has targeted 70 per cent of group revenues to come from ecommerce.
Across the global supply chain, analysts are also seeing a shift in how companies view the process of sourcing and selling goods and services.
Gartner notes that there has been a key focus on supply chain value, network integration and sustainable execution over the last year, evidenced in its Supply Chain Top 25 2011 report.
One of the overriding features has been the move away from the traditional conception of a “supply chain” to something more akin to a “value chain”.
Integral to this has been the emergence of a supply chain organisation that reports directly to company boards and is responsible for planning, sourcing and securing delivery.
Gartner vice-president Debra Hofman explained: “The consumer-oriented companies, with their need to renew product lines constantly and their appetite for downstream data, have led the way in this change, which may at least partially explain the steady drift away from industrial companies making the list.”
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