Question

In: Economics

discuss the challenges attempting to integrate different activities and organisations across supply chain

discuss the challenges attempting to integrate different activities and organisations across supply chain

Solutions

Expert Solution

IT has enhanced supply chain very significantly which is evident if we consider example of Amazon. Amazon has been able to optimise the available resources with the help of supply chain software that help the customer as well as the seller to track the order. Supply chain software also helps in managing the available inventory and regularly update the software with recent data. It helps in maintaining a details database with the information related to the order placed by the customer and delivery of the order.
Challenges that organisation has been facing in implementing supply chain software is related to the payment system and returns and cancellation of order by the customer. It is important to have a secure payment system in order to initiate the purchase order placed by the customer and deliver the same to the customer. Due to increase in competition and large amount of data available on internet related to product. The customer if find cheaper product available on the other side is easily able to cancel the order which adds up to the cost of the seller.


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