Investigation on Improving E-commerce Product Delivery via SCM

This report investigates improvements in product delivery for e-commerce companies, focusing on the impact of e-commerce on global supply chain management. It examines e-commerce trends related to product delivery, highlighting advantages and disadvantages of online buying for customers. The report discusses improvements to enhance customer experience, drawing examples from companies like Amazon, which uses advanced logistics for efficient product delivery and real-time tracking. Future possibilities, including the use of drone technology, are also explored to further optimize delivery services. The report concludes with recommendations for global supply chain companies to improve their logistics management and learn from competitors to ensure timely product delivery, ultimately enhancing customer satisfaction.

Supply chain management
5/31/2019

Supply chain 1
Executive summary
The purpose of report is to investigate the improvements of the product delivery for the e-
commerce companies. The scope is limited to understanding the concept e-commerce effect on
global supply chain management. The findings of the report include the impact of the e-
commerce on the global supply chain management. The trends of the e-commerce business
create the impact on the delivery of the product. Further, it includes the disadvantage and
advantage towards the customers for buying the product through the online mode. The
improvements for the global logistics company are presented to offer the better services like
Amazon Company. In the end, it shows the future possibility in terms of technology for the
product delivery.

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Contents
Introduction......................................................................................................................................3
E-Commerce effect to global supply chain.....................................................................................4
E-commerce trends with regards to product delivery..................................................................5
Disadvantages of buying online.......................................................................................................6
Advantage of online buying.............................................................................................................7
Improvements to providing better customer experience of product delivery..................................7
Future possibilities for product delivery..........................................................................................8
Conclusion.......................................................................................................................................9
Recommendations..........................................................................................................................10
References......................................................................................................................................11

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Introduction
In the present era, the working of the business is dependent on the supply chain management that
include the management of the flow of goods and services that includes the movement and the
storage of the raw material, work-in process inventory and the finished goods from the point of
origin to the point of consumption. The aim of the paper is to investigate the improvements of
the product delivery for the e-commerce companies. The customers present in the global
environment deal with the issue of the timely delivery of the product when they order it with any
of the e-commerce website. Thus, the report throws the light on the e-commerce effects to the
global supply chain, its trends that affects the delivery of the products, the reasons due to which
the customers should not make the online purchase of the product and many others. The
discussion is supported with the example of the real-life companies that helps in understanding
the better tracking system that helps in making the product available.

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E-Commerce effect to global supply chain
In the research, it has been found that the rise in the e-commerce growth has created positive as
well as the negative effect to global supply chain management. The emergence of the e-
commerce has offered has impact the reduction in the transaction cost of the product and has
reduced the cost for the domestic and global sourcing. The cost of sourcing has reduced because
of the bulk orders by the companies from the suppliers that give them a way through which they
can deliver the products in single cost and do not have to transport small slot repeatedly (Yu,
Wang, Zhong and Huang, 2016). In addition, quick responses related to the sales transactions
have cascading the influence on the supply chain as it results in the large contraction or huge
expansion in terms of the production, shipment, inventory and many others.
This challenge leads to the effect on the customers as they face the issues related to the vast
delay in the services, late delivery of the products and lack of product availability. The change in
the trends in the global market brings the quickly change in the effective suppliers of the online
stores as they need to manage the products according to the demand of customers (Montaldo,
2019). Companies deals with more complexity when it comes to managing the different forms of
the returns as well as the high competition. Another issue, that has been witnessed with the
emergence of the supply chain include e-commerce business environment might have the
significant impact on managing the supply chain relationships (Lanz, Lundquist, Mansio,
Maurer and Teh, 2018). In addition to this, the rapid development of the e-commerce need the
effective managers for the supply chain who can take the precautions and also develop the
strategies for dealing with the rapid the change in swings.

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E-commerce trends with regards to product delivery
Considering the details from the recent study, this has been witnessed that e-commerce sector
will experience the double-digit growth until the year 2020 when the sales are predictable to
increase $4 trillion. The below given are some of the trends of e-commerce: -
 Same day delivery: - The current trends of the customers says that once the customers
place the order they want the next day delivery of the product. This is becoming common
trend and for this delivery, the customers are willing to pay high amount for faster
delivery in global market (Christopher, 2018).
 Focus on visibility of product: - In the present trend, the traditional carriers of the
product has enhanced their traceability which is evident with the face that delivery and
tracking details. Many companies use GPS tracking system through which the customers
can trace their order location.
 Subcontracting deliveries: - Currently maximum companies are making the use of their
own or shared vision for the last mile delivery. There are some of the 3PL companies
manage their own local delivery services that are evidence as they have their own
vehicles and drivers on the payroll majorly for the local deliveries not for the long
distance (Duarte, Macau, Flores e Silva and Sanches, 2019).
 Pick-up and pack companies: - E-commerce business are taking the support of the
growing number of the retailers who pick-up, pack and ship companies who act almost
like the personal courier service among the customer and retailer (Fernie and Sparks,
2018). The growing e-commerce company implement the opportunity for the same day
delivery to the customers that is possible with such sort of the companies.

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Disadvantages of buying online
Online purchase of the products has been increased from past few years with this there is
increase in the issues. Some of them are given below: -
No clear time of delivery of the products: - E-commerce business most of the companies do
not provide the clear delivery time of the products that is considered as one of the major
disadvantage of the e-commerce system due to which the customers gets affected (Montaldo,
2019).
Handling of products: - The handling of the products is one of the major disadvantage which is
faced by the e-commerce because in-transit most of the products get loss, stolen or damaged.
This leads to the loss of the company in the market and it affects the customers because their
order gets delay due to the issue of online buying.
Lack of touch and feel merchandise: - The customers are not able to touch-feel try that leads to
the concern over the quality of the product. This affects their purchase because they cannot find
the right product at the time (Kayikci, 2019).
Delay in delivery: - Long duration as well as lack of the proper inventory management leads to
the rise in the delays majorly when it comes to the shipment of the products. This affects the
customer experience with the product because they do not get the product on time (Rahman, et
al, 2018).
Advantage of online buying
In the research, this has been found that emergence of the online buying offers different
advantages to the customers. Some of the advantages are discussed below -

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Online shopping saves time: - Customer prefers shopping through the online mode because
they can save their time in visiting the store and purchasing the product (Schniederjans,
Schniederjans, and Cao, 2018). The e-commerce companies offer the wide platform through
which the customers can easily purchase the products. For instance; Amazon company who
offers the wide range of products under one roof.
Ease availability and online tracking: - The e-commerce companies offer the easy accessibility
of the products 24/7 anywhere across the world and the product tracking services to the
customers (Akter, 2018).
Comparison: - The research shows that before making the purchase of the products customer
check and compares all the products. The comparison of the products helps the customer to make
the effective choice of the products and this comparison gives them a chance to save their
amount.
Improvements to providing better customer experience of product
delivery
E-commerce customer find the delay in the product delivery which affects the customer
experience with the brand. The improvement in delivery of the product is essential effective
customer experience.
Better logistics is effective way through which there will be improvement in delivering the
products for the effective customer experience. The e-commerce companies want to manage the
logistics like Amazon Company. The company use the delivery system include AMZL_US who
can easy shipped the products (Amazon, 2019). Amazon is the indisputable king of the e-

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commerce delivery and this seems to be poised to remain on its throne for the near future. This
has been found that Amazon Company has shipped over than 5 billion items across the world via
Amazon Prime’s free one or two day shipping in the year 2017 (Taylor, 2019). The company can
easily perform logistics in market for product delivery. The company brings the improvement by
offering the real time tracking of packages and sending notifications to their customers like
Amazon company.
Future possibilities for product delivery
In the near future, there will be presence of the high technology that can be used by the company
in logistics. It has been found that according to statista data, e-commerce sales are likely to
increase as much as 25% between the year 2019 and 2022 (Taylor, 2019).
In the near future, the company will use drones services for delivering the services in which they
will have the secure and faster system for the product delivery. This has been evidence that
estimated the value of drone activity has reach to $1 billion in the year. Further, the delivery
from the drone and transportation will reach to $11.2 billion in the year 2022.
In addition to this, the companies will have their own transportation mode through which they
can deliver the products like Amazon. Thus, this will improve and make the fast delivery of the
products.
Conclusion
In the end of the report, this has been found that the rise in e-commerce will create the impact on
the global supply chain. This has been found that there is positive as well as negative impact on
the global supply chain management. Further, the trends of the e-commerce related to the

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products that are delivered are discussed in the report that is presented. In addition, the
advantages and disadvantages of the online buying have been discussed. In the end, the report
includes the improvement to offer the better customer experience of product delivery that is
supported with the examples of Amazon Company. Moreover, the future possibilities for the
product delivery are included that consist of use of technology for the future development.

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Recommendations
 It is recommended to the global supply chain companies to improve their logistic
management technology that effective contribute in delivering products on time.
 It is suggested to the company to learn from the competitors like Amazon company to
deliver the products on time.

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References
Akter, T. (2018) Online Shopping Behavior: An In-depth Study on Motivating and Restraining
Factors. Global Journal of Management And Business Research.
Amazon (2019) Deliver With Amazon [Online]. Available from: https://logistics.amazon.in/
[Accessed on 31st May 2019]
Christopher, C. G. (2018) E-commerce in a connected world [Online]. Available from:
https://www.supplychainquarterly.com/topics/Finance/201873-e-commerce-in-a-connected-
world/ [Accessed on 31st May 2019]
Duarte, A.L.D.C.M., Macau, F., Flores e Silva, C. and Sanches, L.M. (2019) Last mile delivery
to the bottom of the pyramid in Brazilian slums. International Journal of Physical Distribution
& Logistics Management.
Fernie, J. and Sparks, L. eds. (2018) Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Kayikci, Y. (2019) E-Commerce in Logistics and Supply Chain Management. In Advanced
Methodologies and Technologies in Business Operations and Management (pp. 1015-1026). IGI
Global.
Lanz, R., Lundquist, K., Mansio, G., Maurer, A. and Teh, R. (2018) E-commerce and developing
country-SME participation in global value chains (No. ERSD-2018-13). WTO Staff Working
Paper.