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INTRODUCTION: E-commerce will not only have an impact on the supply chains of medium to large companies.

It will also change the way we live and work in our cities and communities, it will change government at both a local and national level and it will affect the way that we build contingency into our lives. Internet technologies have grown out of a range of standards that are based on the need to communicate and interact openly. As such, we can expect to see day-to-day activities such as shopping, ordering, booking tickets and personal services increasingly moving online. This will have a dramatic impact in cities.

Answer no.1: E-commerce technology allows businesses to market and sell their products to virtually any country on the planet; the global supply chain has become a matter of great importance for many online companies. At a simplistic level, supply chains are typically made up of three major flows physical, financial and information. E-commerce has the capacity to affect all three.

Physical flows can be affected by using information to avoid physical movements and to make product information available through virtual ways. In essence, e-commerce can give companies access to more markets and customers without the physical need to move the levels of product and inventory that were required in the past. Information flows can be affected by the capacity of e-commerce solutions to provide 24 x 7 x 365 access to information and to eliminate traditional paper-based approaches to working and company interactions. E-commerce is also particularly well suited to providing information such as product tracking and tracing.

Financial flows can be affected by the capacity for e-commerce solutions to offer faster payment and settlement solutions at all stages of the supply chain.

The buying and selling of goods continues to undergo changes that will have a profound impact on the way companies manage their supply chains. Simply put, e-commerce has altered the practice, timing, and technology of business-to-business (B2B) and business-to-consumer (B2C) commerce. It has affected pricing, product availability, transportation patterns, and consumer behavior in developed economies worldwide. B2B e-commerce results in a substantial reduction in transaction costs, improved supply chain management, and reduced costs for domestic and global sourcing.

Answer no.2: Pakistan is ready but broadening of global e-commerce will be a gradual process, phased in over time; it will involve a lot of hard work. The benefits of supply chain improvements will be considerable, however, representing 515 per cent of overall supply chain costs. Western markets like as mentioned above about US, leading supply chain operators are likely to achieve collaboration with their key value chain partners far more speedily and effectively than their competitors. India and China have redundant human resource which has a great impact on global supply chain activities and e-commerce but we can't ignore that Pakistans market size and large online population laid a strong foundation for internet retailing. Overall, we can expect a ten-year period of fundamental restructuring of the way that companies collaborate and synchronize their supply chains and e-commerce strategies. The benefit of cost savings and performance improvements will accrue to the companies that are the best at harnessing ecommerce solutions.

Answer no.3: Weaknesses: Political influences, legal constraints, social and cultural barriers, strikes leads to poor inventory management. Only one domestic payment gateway facilitated by UBL, which processes Visa and MasterCard transactions.

Strengths: Pakistan is considered a frontier market, in that it serves as gateway to land-locked economies, including Central Asia, parts of Russia and northwestern China. Pakistani logistics companies can reach into these markets that are not easy to enter for international firms. E-commerce firms operating in Pakistan have the opportunity to sell into markets adjacent to Pakistan. Higher return on investment then other economies It is a consumer economy, large percentage country's GDP spent on consumption.

Answer no.4: Pakistani e-commerce retail companies have to improve its payment gateways. They have to create awareness among the customers about payments thru debit and credit cards. By doing this they can save their time and money which is wasted on cash on delivery transfer.