A Study of Supply Chain in E-Commerce at eMart Solutions India Private Limited

Introduction:

In the fast growing and busy world, no one has time to go and shop even their daily required
products from the shops. The cost of fuel and heavy traffic takes a major time of people and
thus comes the need for a fast and efficient way of retailing which is expected to be the
future trend.
But, like every other process this also has got lots of barriers and thus to understand the
process involved in e-commerce becomes an important thing.
Thus this research has been carried to understand the Supply Chain processes
involved in an E-Commerce firm. As E-Commerce is a fast growing trend and is
expected to be the future of retailing.
Objectives

The main objective behind this research has been a curiosity to understand the changing
pattern of retailing.
Compare e-commerce to traditional commerce
Understand e-commerce concepts
Relate the concept of supply chain to e-commerce
Identify ways (Processes) to carry out supply chain activities through e-commerce.
Review

In this section we present the definition of Logistics, SCM and E-Commerce as well as their
relationship among others that are very crucial for the logistics operations.

A. Logistics and SCM

Logistics is defined by the Council of Logistics Management as the process of
planning, implementing and controlling the efficient and effective flow and
storage of goods, services and related information from the point of origin to
point of consumption for the purpose of conforming to customer requirements. It
includes inbound, outbound, internal, external movement and the return of
material and goods as well as order fulfilment.

B. Logistics Framework
Figure shows the physical and information flows from raw material to the final
distribution of the finished products. It starts with the procurement activity
where the process of selecting the suppliers and draw a purchase agreement
take place. It refers to raw material, components, imported material, bought-in
parts and supplies bought from outside organizations to support the companys
operations. It also involves the process of assigning task for the production
process, sub-assembly as well as work in progress.

A Study of Supply Chain in E-Commerce at eMart Solutions India Private Limited

Logistics framework
Next is the material management activity where determination of quantities and time points
for all items. The goal is to achieve the efficient material flows, delivery services and
utilization of resources. Attention is directed to which items must new orders be planned,
what quantity in the order must be stated for each item, when must the order of each item
delivered to stock, directly to production or directly to the customer.
Final activity that involves in the logistics is the distribution process where the
final receivers are the customers and end users. An additional and very
important factor is that of reverse logistics where the flow of products and
packaging back through the system.

C. Relationship between SCM and logistics

Figure shows a simple supply chain that can be broken into three major parts: upstream,
internal and downstream. The upstream supply chain includes the activities of a
manufacturing company with its suppliers and their connections with their suppliers. The
supplier relationship can be extended to the left in several tiers, all the way to the origin of
the material. The major activity is procurement. The internal supply chain includes all inhouse processes used in transforming the inputs received from the suppliers into the
organizations output. It extends from the time the inputs enter an organization to the time
that the products go to the distribution outside of the organization. The major concerns are
production management, manufacturing and inventory control. The downstream supply
chain includes all the activities involved in delivering the products to the final customers.
Attention is directed at distribution, warehousing, transportation and after-sale service.

D. Logistics and E-Commerce

E-Commerce is defined as technology- mediated exchanges between parties (individuals,
organizations or both) as well as the electronically based intra- or inter-organizational
activities that facilitate such exchanges.
E-Commerce also can be defined as the process of buying, selling, transferring
or exchanging products,services or information via computer networks, including
the Internet.
Methodology

Most of the research being done is based on physical interviews being done with Industry
Experts with good experience in supply chain, logistics and ecommerce industry.
Primary Data: The primary data has been obtained from the selected employees &
senior executive of eMart Soluitons through circulation of the structured non-disguised
questionnaire.
Secondary Data: The secondary data has been obtained from published as well as
unpublished literature on the topic and from Books, Journals, News Papers, Research
Articles, Thesis, Websites, Magazines etc.
eMart solutions is a startup B2B and B2C Private Ltd. Firm. Being a part of Order
Management team in eMart has in itself given a lot of experience in supply chain and
ecommerce industry.
SAMPLING DECISIONS:

A Study of Supply Chain in E-Commerce at eMart Solutions India Private Limited

SAMPLE SIZE:
Appropriate number of sample size (i.e. 60) was put to used for the purpose of
collecting primary data from the selected employees of eMart Solutions India
Private Limited.
SAMPLING METHOD:
Non-probability sampling design based on convenient sampling method has
been used for this research study.
SAMPLING FRAME:
The representative sampling units in appropriate & justified size has been
conveniently drawn from amongst different employees across various
heterogeneous socio- economic age groups, occupations, gender who have
availed health & safety measures as offered the eMart Solutions India Private
Limited.
RESEARCH INSTRUMENT:
A structured non-disguised questionnaire has been prepared to get the relevant
information from the respondents. The questionnaire consists of variety of
questions presented to the respondents for their responses. The researcher has
been used questionnaire with the support & cooperation of the selected
respondents of various departments at managerial and non-managerial level of
eMart Solution India Private Limited.
SAMPLING MEDIA:
Sampling media has been in the form of Filling up of questionnaire.

DATA COLLECTION, ANALYSIS & INTERPRETATION:

The collected information and primary data has been subjected to data analysis
and interpretation. The collected primary data has been pre-coded considering
the designing of the structured non-disguised questionnaire. The primary data
has been scrutinized, edited and validated and thereafter it has been presented
in the forms of tables, charts, graphs and diagrams as the case may be.
The Analysis of research and interviews is the thorough understanding of the process
involved in supply chain, logistic activities involved in ecommerce business which is as
follows:

There are three types of supply change activities in ecommerce

business (eMart Solutions)

A Study of Supply Chain in E-Commerce at eMart Solutions India Private Limited

First Type
Process involved:
1- Company (eMart) issues PO (Purchase Order) to vendor (By Finance Team/Through
CRM or Automated)
2- Vendor delivers product to eMart office
3- Vendor provides invoice (original) to concerned person
4- eMart gives GRN(Goods Receipt Note) (Prepared by Operation Team)
*Points to be considered before issuing the GRN
A- Quantity of Product
B- Model No. of Product
C- MRP of Item
D- Input Price of Item (from vendor)
E- Tax rate (%)
5- Vendor credit starts from GRN date (Credit term of payment)

Second type
Process involved:
1- eMart issues PO (Purchase Order) to vendor by ........ pm (eg. 2 pm) (PO prepared by
Finance Team/Through CRM or Automated )
2- eMart will issue delivery request by.................. pm (eg. 5-6 pm) to Courier Company (Like
Bluedart, Aramex) in agreement with eMart (By Operations Team through Email)
*Email will include
A) Pick up details (Name, Address and Phone No of the concerned vendor of the product
ordered online)
B) Delivery details (Name, add and Phone No. of the online customer)
C) Product details (Product Name and Model No.)
3- Vendor keeps ready the product by ....... pm (eg 5pm)
4- Vendor courier the invoice to Emart (Hardcopy of invoice for record)
5- eMart will verify invoice and issue GRN (Done by Operations Team)

Third Type
Process involved:
1- eMart will issue the PO (Purchase Order) to vendor (Prepared by Finance Team/Through
CRM or Automated)
2- Vendor delivers stock to client directly without Invoice

A Study of Supply Chain in E-Commerce at eMart Solutions India Private Limited

3- Vendor couriers invoice copy to eMart

4- eMart gives GRN(Goods Receipt Note ) (By Operation Team )
*Area of Consideration before issuing the GRN
A- Quantity of Product
B- Model No of Product (like television etc.)
C- MRP of item
D- Input Price (Provided by vendor)
E- Tax rate (%)
5- Vendor credit starts from GRN date (Credit term of payment from eMart)
Reference:

Chopra, S. and P. Meindl, Supply Chain Management: Prentice Hall

E-Commerce and E-Business: Zorayda Ruth Andam
www.wikipedia.org
www.marketwatch.com/
The Economist
http://www.ecommercetimes.com