Rajesh Singh
Prof. S. K. Sharma
Jyoti Prakash
Abstract
Supply Chain management is an approach to working with supplier not only purchasing but also a comprehensive approach to develop maximum valuefrom the supply chain. Leading companies determine the right supply chain strategy and often develop a logistics management organization to ensure effective warehousing and distribution. Thus Supply Chain Managementprovides great opportunities for firms to develop a competitive advantage often using e-commerce. In this paper, Production distribution model of Forrester has been used to demonstrate the traditional way of managing of supply chain vis-à-vis use of new information links for networking with supply chain network among supplier,distributor, and manufacturer. It is demonstrated if information link among the three sectors are linked ,the retailer is aware of information of inventory and order backlog from distributor, and the distributor also receives information from the manufacturer will substantially reduce inventory at alllevels. The middle levelsupplier (distributor) can maintain stock of inventory for varieties of customer, who use the same product,can also offer substantially cost saving for the purchaser as well as for the distributor. The paper shows the use of information via an e-commerce reduces the Bull-whip effect in Supply Chain. It reduces the associated cost of inventory, transportation, shipping and increases customer service and profitability.
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