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DARAZ 2 1.0 Concept of Supplier Chain Management

   

Added on  2021-05-14

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Table of ContentsIntroduction to DARAZ.........................................................................................................................21.0 Concept of Supplier Chain Management.........................................................................................21.1 Importance of Effective Supply Chain Management...................................................................31.1.1 Lower Shipping costs and delivery Speed............................................................................31.1.2 Multi Distribution centers.....................................................................................................41.1.3 Automated barcode technology............................................................................................41.1.4 Accessibility for Products online..........................................................................................42.0 Link between supply chain and business functions..........................................................................52.1 Inventory Management................................................................................................................52.2 Reverse Logistics.........................................................................................................................63.0 Strategies used to maintain Supplier relationship............................................................................63.1 Supplier Evaluation.....................................................................................................................63.2 Onboarding and Training.............................................................................................................63.3 Improving supplier recognition....................................................................................................74.0 References.......................................................................................................................................81

Introduction to DARAZIn Sri Lanka, the e-commerce industry has grown rapidly in the last year, with a significantpercentage of shoppers turning to the digital platform. The shift in attitude toward e-commerce hasbeen aided by a rise in trust in available goods and online payment gateways. Daraz, Sri Lanka'slargest online marketplace, saw massive growth in terms of orders and net merchandize value in 2019,as well as a strong 11.11. campaign that outperformed its sales goal, indicating the direction in whichlocal e-commerce is heading. Daraz published an e-commerce index based on data from their ownplatform that shows key demographic, customer behaviour, and buying patterns in Sri Lankan onlineshopping. The Western province has the highest online order share of 50%, followed by the Centraland North Western provinces with 10% and 9% order shares, respectively. Colombo and Gampahahave the highest district-level order share, with 31% in the former and 15% in the latter. Theconcentration in these areas reflects the country's population density. There is, however, evidence of ashift away from the main cities of Colombo, Gampaha, and Kandy and toward developing towns likeKurunegala, Kalutara, and Gampaha.1.0 Concept of Supplier Chain Management Supply Chain Management (SCM) is the method of taking an order and seeing it through tocompletion. Via a virtual network or directly, this mechanism connects suppliers, retailers, andconsumers. The primary goal of SCM is to transfer products from producers to consumers. Managingthe supply chain is one of the most important aspects of the company, as it affects the entire operation.To grasp the significance of SCM, we must contrast the situation when the traditional method ofgathering and distributing goods was used with the advanced supply chain management system. Themanagement of supply change is an essential element of the business. The company will accomplishits target in good way if the supply chain is functioning efficiently in the organization. Management ofthe supply chain involves three political, tactical and operational stages. In strategic terms, thecompany decides how it works in order to control the supply chain. Tactics means what in the supplychain should be used that helps the company to accomplish its objectives and how it works exactly.The relationship between supply chain management and business goals is therefore solid(Amin,Program andYousuf, 2019).Figure 1-1 Linear representation of a supply lineA simple illustration of a supply chain, as seen in Figure 1-1, shows that it is linear, withcompanies only connected to their immediate upstream suppliers and downstream consumers.It also only considers one-way material flows, ignoring important details and financial flows,as well as reverse material flows. Such misunderstandings simplify fact and obscure thecomplex existence of a supply chain network.2

Figure 1 – 2 Network representation of a supply chainIn fact, supply chains necessitate a plethora of connections and pathways for goodsand information to move. The conceptual diagram of a supply chain in Figure 1-2,which depicts the supply chain as a web or network of participants and services, betterreflects this. To get the most out of a supply chain, an organization must dynamicallytap into its internal capacities as well as the external tools of its supply chain networkto meet customer demands. The sourcing of materials, transformation of materials intodesired goods, and delivery of the product are all made easier by this network oforganizations, their facilities, and transportation links. The sourcing of materials,processing of materials into desired goods, and delivery of products to consumers areall made easier by this network of organisations, their facilities, and transportationlinks(Vorst, 2004).1.1 Importance of Effective Supply Chain Management The supply chain can be effectively managed with the aid of e-business techniques, whichwill ensure improved cooperation between wholesalers and retailers of different goods. E-business strategy will efficiently incorporate better supply chain alignment from the point oforigin to the final distribution of the product. This also leads us to e-commerce, where aparallel network of buying and selling can be observed through the sharing of knowledgeover the Internet. Under the techniques of sound supply chain management, anything fromcars to electronic gizmos can be purchased over the Internet in a hassle-freemanner(‘Internship Report On Topic : “ Barriers in growth of Daraz Bangladesh fromcustomer ’ s point of view .”’, no date). 1.1.1 Lower Shipping costs and delivery Speed Two out of five consumers claim they will never again buy from the seller if they suffer froma bad delivery experience. The same source shows the possibility to raise the rate of shopping3

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