In conclusion the Internet has played a pivotal role in transforming industry value systems. It has affected some areas in more ways than others. Logistics and operations have been completely transformed in coordination with globalisation while marketing and sales has found new audiences the world over. With technology constantly evolving, supply chain management is changing with it and (with the Internet linking them together) industry value systems are becoming more and more efficient as time goes by.
The Internet has played a major role in transforming industry value systems through globalisation and supply chain integration. Factories all over the world each produce a key component necessary for the production of a particular good/item and thanks to the internet it is now easier than ever to manage these supply chains and get the product from production to shelf as quickly and as cheaply as possible.
Globalisation and the Internet
Globalisation has had a significant impact on the way companies do business in recent years. It has created an economic environment that has become more connected and competitive. Through the use of internet and technology, distance and time between countries has been reduced significantly thanks to more efficient logistics and transportation and better networking between organisations. It is now easier than ever for companies to purchase products from different parts of the world and manage those supply chains, especially as many of the links in these chains can be automated. Without the Internet, continued communication and coordination amongst these worldwide suppliers would be more difficult.
Globalisation doesn’t come without its problems though. It has presented many challenges to organisations supply chains. As a result of being able to purchase raw components from sources worldwide so easily, it has placed a greater reliance on these companies to provide these shipments of raw materials on a continued timely basis, otherwise delays could cause problems down the supply chain. Increased competition from low cost and possibly poor quality suppliers has also become a factor.
The customer is at the heart of any supply chain. Satisfying customers’ needs while in the process turning a profit is the main reason for the existence of supply chains. Global companies can create as elaborate a product as they want but the fact of the matter is, if a customer isn’t willing to purchase it, then it’s worthless. Without customers’ demands for goods and services supply chains would simply not exist. Manufacturers and suppliers aren’t the only links in supply chains. Shipping, Inventory warehouses, retailers and the customers themselves also play a crucial role. The Internet has impacted hugely on the day to day running of supply chains.
In supply chains, value is added constantly along the chain as goods and services flow from raw materials/manufacturers etc. to final...