The Power and Trend of E-Commerce

[Type the company address]

Present to:

Dr. Kamy Farahbod

Winter

11

08

Fall

Present by: Hsien-da Lin

Student ID#: 003253093

The Influence of E-commerce on Supply Chain Management

Introduction:

E-commerce was first introduced in 1990 and has rapidly changed the way people live, furthermore, transformed the boundaries of business. By adapting E-commerce, companies and organizations can be able to overcome geographical limit. Sellers and buyers can access to all kind of resource and information through the Internet. However, the complex of E-commerce transaction also caused great impacts on warehousing, shipping, and communication, and throughout the whole supply chain.

E-commerce technologies and applications: After E-commerce start emerging in business world in 1990, numerous of new technologies and applications have been fundamentally changing the way people do business in almost all industries today. Following are several examples of new technologies/applications that influenced industries in different perspectives:

1. Online real-time payment systems: There are several online payment systems, such as paypal.com, which allows payments and money transfers throughout whole supply chain to be made via Internet. (from end-users, retailers, distributors, wholesalers to manufacturers and suppliers). Lynch analyst Justin Baldauf commented the giant of online payment system of paypal, “paypal is the gorilla in the online payment market,” “Paypal had some 20 million registered account holders; about $1.5 billion in payments sent to its customers in the second quarter of 2002.” (1) The online virtual payment system enable each party among the supply chain to receive and pay the payments immediately in real-time. This payment method has broken through many of the traditional barriers, such as geographical barrier, waiting time and security etc.

2. Information systems: There are many new enterprise information systems focus on integrating real-time...