Due to cost-related factors, most business organizations are using the internet as part of their supply chain management systems. The most important factor concerning the use of the internet is the reduced cost giving fast transactions and increased transparency. Logistics and Supply chain management professionals find it easy to access the information quickly and avail services whenever they want.
During the procurement stage supply chain management professionals find it easy to quickly access information regarding the availability of raw material and products and the price of items. However, the supply chain management professionals should make the information available on the internet in order to be accessible. Security also should be a concern and the data should be visible only to the supply chain partners through the internet. The more information supply chain management professionals have from procurement sources the more efficiently and economically they can manage it.
Through the availability of information through internet supply chain management professionals find an increase in market size to be accessed. Selling products all over the globe is possible with the use of the internet in a supply chain management system. One of the adverse effects that may affect supply chain managers is the transparency in pricing system which makes competition top leverage over the products. Products that are having higher margins can be utilized for compensating such scenarios in particular countries.
The possibility of intermediate agencies and professionals are reduced due to the penetration of internet in supply chain management. The possibility of purchasing directly from manufacturers and selling directly to customers has increased due to internet selling activities. Due to this real-time data can be obtained through internet by the level of engagement and data related to selling products. The use of internet in supply chain management is still in the early stages and further scope is still in the research stage.