Benefits of e-commerce in the value-chain process

Benefits of e-commerce in the value-chain process

Every business is part of a value chain, with suppliers on the buy side, and customers on the sell side. Cost-saving methods usually focus on the buy side of the value chain and on improving the productivity of systems and processes that interact with suppliers.



Revenue-enhancing be befits usually focus on the sell side of the value chain and on improving the productivity of systems and processes that interact with customers. The benefits of e-commerce for both the buy side and sell side include.

Benefits of e-commerce in the value-chain process

  1. Improved productivity:-

This benefit is usually measured in terms of the cost savings that result by lowering the cost of transactions. For example, a company can automate a paper-based manual process such as requisitioning by using a purchasing application on a computer.

  1. Better data for more informed decisions:-

Better data results in useful information for predicting future business events such as next month’s orders. More accurate data means that the company can adjust inventory level accordingly. If the demand forecast is accurate, the company can move to a just-in-time inventory solution.



  1. New customers:-

Establishing a new channel may result in reaching customers that the company is not currently serving effectively.

  1. New sales channels:-

Establishing a new channel such as a trading exchange, a new distribution network, or direct selling can provide new revenue opportunities.

  1. Improved policy compliance:-



Policy compliance measures improve the quality and efficiency of business operations. For example, a company can set rules on specific general ledger codes that eliminate manual corrections or restrict purchasing to a list of approved vendors.

  1. New services:-

Extending a business process may facilitate providing value-added services, such as dispute resolution, financial settlement, logistics and authentication.

  1. Higher customer satisfaction:-

By having a better and deeper relationship with customers, we can ensure happier and more loyal customers who so end more money and return more often. If the company is the easiest and simplest channel to buy from and offers rich customer value (most variety, the best information on availability, highest quality and so on ), then the company has a competitive advantage.

  1. New information products:-

Technologies may capture data previously not available, and the packaging of this data provide another product to sell.




Also Read:-

What do you mean by e-commerce?

Why is e-commerce important? 

What are the functions of e-commerce?

Advantages and Disadvantages of E-commerce 



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