To what extent do you agree with the statement that 'e-business is much more than a strategic initiative'?
I find particularly interesting Johnsons and Whang’s (2002, p. 413) statement that “nothing has rocked the young field of the supply chain management like the emergence of the Internet”. It indeed rocked, by lowering costs, minimizing the response time, creating new business models, improving logistics abilities and overall improving the service offered to the customer.
Gribbins et al. (n.d.) analyzed in their paper how e-business impacted P & G, a major player in the consumer goods industry. From P & G’s e-business and internet “embrace” we can clearly see the impact and results this strategic initiative has on an organization. A few examples of what they have developed:
1. E-stores (e-commerce) platforms, where customers can do purchases online; this approach have brought the organization direct contact with the customer and a global reach and expansion;
2. Supply Chain Information Collection Initiatives which, by sharing effectively information, efficiency is increased, inventory management is kept under control, hence costs are reduced;
3. Transora online B2B procurement e-stores which reduces the customer’s ordering time and purchasing costs and provided a good flow of inventory management, which makes a close to perfection integrated supply chain for all parties involved;
4. Web-based knowledge data bases, to help reduce product development time by creating a bridge between employees and serve, as well, as an online internal community.
The above 4 points gave as an example from P & G’s e-business and internet integration, are just a few of e-business positive sides.
It is worth mentioning more in depth the impact it has on functions within the Supply Chain, and not only:
1. Warehousing:
a. RFID’s - no longer a luxury in the field, but a