IMPACT OF

INTERNET ON
SUPPLY
CHAIN

 Meaning of
production
supply chain
 Key activities in
Supply chain
 Impact on Supply
chain
 Live example
 Conclusion
A production supply chain refers to the
flow of physical goods and associated
information from the source to the
consumer.
Production planning
Purchasing
Materials management
Distribution
Customer service
Sales forecasting
1. Cost efficiency
2. Changes in the distribution system
3. Customer orientation
4. Shipment tracking
5. Shipping notice
6. Freight auditing
7. Shipping documentation and labelling
8. Online shipping enquiry
Cost efficiency:
Electronic exchange of cargo documents
Streamline document handling without
monetary and time investment
Reduce costs, improve data accuracy,
streamline business processes, accelerate
business cycles, enhance customer service
Flexibility in business
Link between customers and
distribution centers is closer.
Customers can manage complex
movement of products and
information
Access rate information, place delivery
orders, track shipments and pay freight
bills
Builds companies business and enhance
shareholder value
Availability of detailed information and
conduct of business-self service systems
for customers
Real time information
Perform supply chain management and
decision support functions
Encryption technology
Automation: electronic transfer of packing list in advance
Record of details of each pallet, parcel and item being shipped

Freight Auditing
Reduced risk of overpayment
Elimination of paper work
Reduces manual intervention- the standard
bills of lading, shipping labels will be
automatically produced.
Specialized export documentation.
Paper work is reduced- Increases efficiency
Instant information from any location
Parcel shipments can be tracked
Proof of delivery quickly confirmed
Negotiation of rates
 Hilton Hotel implemented an electronic ticketing scheme
through their website in order to make an easier booking of
rooms and meeting facilities (2000). According to, Hilton Hotel’s
senior VP for e-business and distribution, the internet facilitates
the hotel’s interaction and helps in the transformation of
customer-business relationship.

 Adlon Hotel in Stockholm increased its clientele by maintaining

a website that caters to specific international languages such as
German, French, Italian, Spanish, Portuguese, and Scandinavian
languages and English (1998). Also, the application of multilingual
website of Adlon Hotel reduced the amount of advertising using
the mainstream media. As to this case, international advertising
is cost effective and at the same time extensive in scope. Just by
taking the pains of translating one single page of Adlon Hotel’s
website and promoting these language gateways into the site, the
marketing operations significantly improved ( 1998)
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