e-commerce_and_supply_chain_management_1

TABLE OF CONTENTS Abstract ............................................................................................................................... 2 Chapter-1 ............................................................................................................................. 5 Introduction ......................................................................................................................... 5 RELATIONSHIP BETWEEN E-COMMERCE AND SUPPLY CHAIN MANAGEMENT ............................................................................................................. 7 Indian E-commerce ......................................................................................................... 9 Main Worldwide e-Commerce Trends ......................................................................... 11 e-Commerce and Globalization ..................................................................................... 12 Existing Problems in the Development of International e-Commerce ........................ 13 Background and related research .................................................................................... 15 Supply Chain Planning .................................................................................................. 16 Supply chain enterprise application ............................................................................. 16 Electronic Supply Chain Management (ESCM) .......................................................... 16 WHY WILL E-COMMERCE HAVE AN IMPACT? ................................................. 17 THE ROLE OF ELECTRONIC SUPPLY CHAIN AND LOGISTIC MANAGEMENT IN ETAILING INDUSTRY .......................................................................................... 19 ANALYSIS OF PORTERS' FIVE FORCES AND EFFECTS OF INTERNET ON E- TAILING SUPPLY CHAIN .......................................................................................... 22 Significance of the study ................................................................................................... 23 Research questions ............................................................................................................ 24 Aims and objectives ........................................................................................................... 25 Chapter-2 ........................................................................................................................... 26 Review of literature ........................................................................................................... 26 Research gaps ................................................................................................................ 32 Chapter-3 ........................................................................................................................... 33

a wider audience (internationalization), you can be more transparent with your consumers, you can provide a higher-quality product or service (internationalization), and you can use less resources (environmentally). E-commerce and SCM have benefited from the rise of modern information technology and the proliferation of connected computers. SCM focuses on the integrated planning, co-ordination and control of all logistical business processes and activities in the supply chain to deliver superior consumer value at less cost to the chain as a whole, whilst satisfying requirements of other stakeholders, such as consumer interest organisations and government. Supply chain management (SCM) advocates for the eventual realization of fully integrated, significantly more effective supply chains that include total information transparency and optimum allocation of value-adding operations (Mentzer & John, 2001; Vorst, 2002). Business-to-business (B2B) e-marketplaces (e-marketplaces) serve as the central hub for all commercial activity between companies. E-marketplaces are one of the most hailed breakthroughs in recent years. These marketplaces bring together companies purchasing and selling products and services in an online buying community. By replacing manual processes with automated electronic procedures and by increasing the number of potential trade partners, emarketplaces aim to boost the efficiency and efficacy of procurement operations (Koch, 2003; Chong, Shafaghi, Woollaston, and Lui, 2010). E-commerce owes much of its success to the widespread use of the internet and other forms of information technology in recent years. For China, while e-commerce began late compared with wealthy nations like the United States, it has been working to catch up for a long time. Electricity's rise has had far-reaching effects on supply chain management, and the enterprise management mode of supply chain management in e-commerce is an innovation and development of e-commerce supply chain based on the Internet service platform, whose hallmarks are the electronic trading and informatization of the supply chain process, which in turn completely upend the conventional pattern of upstream and downstream business synergy. By incorporating supply chain management into their existing operations, e-commerce businesses remove the barriers that have traditionally separated consumers from producers. Unlike traditional supply chains, however, the e-commerce supply chain is more like a network than a linear supply chain, with central manufacturers functioning as hubs for both upstream and downstream suppliers. The objective is to provide superior pre- and post-sale support for tangible goods. So far, there are three supply chain management types of e-commerce, namely

The supply chain can see more information thanks to e-commerce technologies. The whole cycle is completed when the purchasing process is included into production planning, scheduling, and inventory management. With more access to data, businesses are better able to meet consumer needs and get more timely updates on the progress of their transactions with vendors. Companies recognize the importance of information visibility to their competitive position because of this influence. E-commerce's influence on supply chain management (SCM) is growing rapidly. The effect will grow over time as more businesses implement e-commerce solutions and as cross-business and cross-national collaboration becomes the norm. The expansion of e-commerce will take time and a lot of effort, since it will be brought in gradually. However, the payoff for investing in the supply chain will be substantial, saving anywhere from 5 percent to 15 percent of total supply chain expenses. The most successful supply chain management companies are more likely to collaborate with their most important value chain partners quickly and efficiently. The most successful businesses in adopting e-commerce solutions will reap the rewards of reduced expenses and enhanced efficiency. Indian E-commerce The e-commerce sector has expanded rapidly. Although several factors influence its growth, internet access is crucial. Only 11% of India's 137 million people utilize the internet, according to a report by Forrester McKinsey from 2013. Among all shoppers, just 18% are internet users. There are more people using the internet in China (1.3 billion), Brazil (79 million), Sri Lanka (3.2 million), and Pakistan (29 million) than there are in India (53 million). Roughly four percent of GDP comes from online trade. It has been claimed that more than 70% of all e-commerce transactions made by Indian consumers are related to travel, with the great majority being online hotel and aircraft bookings. Makemytrip.com, Yatra.com, and the IRCTC website are the three largest participants in the travel industry. Twenty-five to thirty percent of B2C e-Commerce is made up of online sales that are not linked to travel. This is made feasible since neither infrastructure nor regulatory constraints hinder the expansion of the internet travel business. Because the items don't need to be sent, infrastructural problems are sidestepped as well.

the easing of the West is another way to wake up any unwilling team members or leaders. An analysis of the share of e-commerce in global retail sales volumes also shows a tendency for rapid growth. Conducting an analysis of the e-commerce market in the context of existing ecommerce models shows that B2B global sales reach $7.7 trillion USA in 2017. So, B2B e- commerce market is more than twice bigger than B2C, and it continues to grow. Given that Ukraine is also actively joining integration into globalization processes, it also occupies not the last positions in the rate of penetration of Internet technologies. In general, about 67% of Ukrainian Internet users visit websites related to e-commerce. If to analyze the growth rate of e-commerce in Ukraine, then they, in recent years, far exceed the growth rate in Europe. This is primarily due to a sharp increase in the level of Internet penetration in Ukraine, as well as the distribution of Internet users by age and income. So, for users with income levels above the average, it reaches almost 100%, a similar situation in the age group 15-45 years, which provides a significant proportion of active Internet buyers. Also, experts note that in 2017 only 9% of Internet users did not buy nightly Internet. Thus, the overall growth in e-commerce has allowed Ukraine to gain primacy among European countries in 2016-2017. This trend will continue for no more than 2 years, as the growth rate of the penetration rate of the Internet decreases as its absolute value increases. This, in turn, has a significant impact on the dynamics of online commerce volumes. e-Commerce and Globalization It is expected that globalization and e-commerce will change the economic structure of nations. The expected economic surplus is mainly influenced by the two above- 351 mentioned factors. In literature, the new structure is usually called knowledge economy, new economy or e- economy. E-commerce not only reduces communication costs, but also increases the flexibility to find actions. Globalization of the firms is announced as a key factor in the spread of e- commerce. It is expected that large global companies are likely to use e-commerce more intensively than less global firms. Companies, faced with foreign competition, are under great pressure to adopt technologies such as e-commerce that will allow them to protect or expand market share and work more efficiently. Companies conducting business outside their own country may be more interested in lowering operating costs (such as information search, negotiation and performance monitoring) with the

Background and related research Commerce is a fundamental economic activity involving trade or the purchasing and selling of products. Electronic money transfer, which enables financial organizations to transmit payments securely and efficiently amongst one another, is the oldest example of e-commerce. Beginning in 2003, electronic commerce (e-commerce) started to show indications of fresh life. E-commerce expanded in tandem with the expanding economy, but at a faster rate. Thus, e-commerce increasingly became a greater portion of the whole economy. The term "e- commerce" refers to the buying and selling of products and services conducted entirely online. A supply chain is a bidirectional movement of information, goods and money between the originating suppliers and end consumers via numerous companies (Nurmilaakso, 2008). Its source might be internal or external. The elements of a supply chain (SC) can be thought of as various intra-organizational tasks (such as sales and marketing, purchasing, production planning, warehousing, and transportation management) in an internal context, while in an external context the SC includes the flow of goods, data, and money between a company and its suppliers, customers, and other business partners. According to Simchi-Levi et al. (2000), supply chain management (SCM) is "a set of approaches utilized to effectively integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time to minimize system-wide costs while satisfying service level requirements." Lambert et al. (1998, p.1) expand the SCM definition to include the concept of value creation by depicting SCM as "the integration of business processes from end user through original suppliers that provides products, services, and information and hence add value for customers and other stakeholders". In a nutshell, SCM is all about eliminating silos inside and across companies and linking them together in such a manner that value can be added for consumers from the time of product conception all the way through delivery, with the help of careful planning, execution, and monitoring of the many processes involved. A successful SCM strategy requires the effective implementation and integration of multiple activities using information and communication technology (ICT), since the components of a supply chain are connected together via the flow of information. An integral aspect of supply

2. 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. 3. 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. At a more sophisticated level, ecommerce will have an impact on supply chains for five main Reasons:  THE PERFORMANCE GAP CAN NO LONGER BE HIDDEN An undoubted impact of the last few years has been the way that dot.com companies have helped to highlight the gap between the level at which companies’ supply chain could and are performing. It is now clear that major companies can no longer afford to be complacent about underperformance. Given that companies now know they need to change, e-commerce-related solutions are the logical enablers of new levels of performance.  COMPANIES HAVE NEW CAPABILITIES THAT ARE NOT YET FULLY EXPLOITED Most major companies have implemented new capabilities as a result of concerns over Y2K and the e-commerce revolution. For instance, many companies now have major ERP systems that integrate data between functions, locations and countries. They have the capacity to manage operations at a different level not only internally but also with customers and suppliers. In addition, many companies have bolted on best-ofbreed software applications, such as eprocurement, demand and supply planning and e-logistics, to these ERP systems. Most companies are still at an early stage of exploiting these capabilities but will increasingly use e- commerce to deliver the benefits from these existing investments.  TECHNOLOGY COMPANIES HAVE INVESTED HEAVILY IN NEW ECOMMERCE SOLUTIONS The last few years have seen an unprecedented investment by technology companies and their financial backers into new supply chain technology. There has been an acceleration of the development of new software technology to support supply chain management. This has been

highly effective mechanism for ensuring that manufacturing is ultra responsive to the reality of actual customers rather than intermediary demand.  DEMAND AND SUPPLY PLANNING Most people find it difficult to cope with planning when it involves more than a few variables. This is an area where computers, statistics and e-commerce will always be more capable – if they are used in the right way. Demand and supply planning systems, such as Manugistics, Aspen Tech and i2Technologies, are increasingly using ecommerce alongside their traditional software applications to improve the effectiveness of planning solutions. Ecommerce is also expected to allow much greater interaction between the planning systems of multiple companies in areas such as collaborative forecasting and replenishment (CPFR) and e- marketplaces.  FULFILLMENT AND E-FULFILLMENT Fulfillment remains an area of great promise for e-commerce solutions, but one that has largely underperformed its potential. Ecommerce has the capacity through information, such as tracking and tracing, to revolutionize the way that goods and services are delivered. It has the capacity to virtualized inventory and to change fundamentally the relationship between end customers, retailers, wholesalers and manufacturers. As yet, this has not happened for several reasons. First, it is not clear that customers are ready but it is only a matter of time before these changes. Second, most logistics suppliers are under intense margin pressure, making investments in fulfillment technology difficult. Third, retailers and wholesalers are unclear about how their role will change if e-commerce allows greater interaction between customers and manufacturers. The potential for e-fulfillment is huge – it is just a matter of time before ecommerce revolutionizes this area.  SERVICE AND SUPPORT Service and support is another area where ecommerce has made some impact but there is still potential for greater change. E-commerce has the capacity to transform the effectiveness of field service forces and to change the way that returns and repairs are where the value proposition will drive radical change, but it will take time.  E-WORKING

E-working is an area that will have a more immediate impact on the supply chain. Most companies have already given thousands of their workers access to intranets and the Internet. They have given them e-working tools such as employee portals, knowledge 7 management systems and computer-based training. Through e-mail they have revolutionized the way in which people work across boundaries of time and space. Eworking capabilities are already having a significant impact on the working of supply chains and on the ability of employees to manage complex events and issues in the supply chain. ANALYSIS OF PORTERS' FIVE FORCES AND EFFECTS OF INTERNET ON E-TAILING SUPPLY CHAIN Porter (201) studied how the internet influences the structure of industry. With regard to his study, internet has positive and negative effects on most industries. For example, on one hand, internet can increase profitability of an industry in different ways and expand the size of the entire market by improving the firm situation compared to its traditional alternatives. On the other hand, internal technology for buyers provides easy access to information about the product and the suppliers, consequently, it promotes the bargaining power of the buyer and leads to gaining less profit. In this step, the articles about analysis of "how ESCM impacts the structure of e-Tailing industry" by analyzing "Porter's five forces" are studied.  Porter's Five Force Analysis Porter (1980) analyzed the dynamic and concentrated structure of an industry in an article titled "the analysis of Porter five forces analysis". This analysis is a simple but powerful model to determine the level of competition in an industry. From the viewpoint of Porter five forces analysis, the power of a company is determined by its competitive situation under the five forces. Managers and academics can use Porter's five forces analysis to determine the level of competition and attraction of the analyzed industry, to evaluate the situation of industry and necessary strategies to obtain a competitive advantage.

Significance of the study Every firm now seems to be investing in B2B e-commerce. Both academic academics and IT professionals are now very interested in researching the value and effect of B2B e-commerce. Reviewing literature on ecommerce advantages and their influence on supply chain management and e-marketplace use might progressively assist to comprehend the link among them. To investigate the interrelationships between these factors in the B2B e-commerce environment of Amman, a research model was constructed. The value of this study lies in the fact that it proposes a research model to investigate the connection between the advantages of e-commerce, supply chain management, and the use of e-marketplaces. To analyze and verify this model, a survey questionnaire was designed to investigate the correlations between these factors. Since these factors are so crucial in the B2B e-commerce setting, our research will shed light on their significance. Understanding the dynamics at play between these factors is crucial so that company leaders and end users can make well-informed decisions about the B2B e-commerce technologies they use.

Research questions Many research have highlighted the association between e-commerce advantages and supply chain management also between e-commerce benefits and e-marketplace use as well as between e-marketplace usage and supply chain management. Multiple marketplaces were analyzed to see if these connections held up. These studies have revealed the substantial importance of each variable in those marketplaces. Based on the above, the researcher has demonstrated the study problem via stirring up the questions below: First question: To what extent e-commerce benefits affect supply chain management? Second question: To what extent e-commerce benefits affect e-marketplace usage? Third question: To what extent e-marketplace usage affect supply chain management? Fourth question: To what extent e-commerce benefits affect supply chain management with e- marketplace usage as mediator?

Aims and objectives The main objective of this study is to clarify the impact of e-commerce on supply chain management and e-marketplace usage the companies that use B2B e-commerce through achieving the following objectives: 1 – Examine the effect of e-commerce benefits on supply chain management in the companies that use B2B e-commerce. 2 – Examine the effect of e-commerce benefits on e-marketplace usage in the companies that use B2B e-commerce. 3 – Examine the effect of e-marketplace usage on supply chain management in the companies that use B2B e-commerce. 4 – Examine the indirect effect of e-commerce benefits on supply chain management through e-marketplace usage as a mediator in the companies that use B2B ecommerce.

Chapter-2 Review of literature The Supply Chain Management Concept A supply chain is a bidirectional flow of information, products and money between the initial suppliers and final customers through different organisations (Nurmilaakso, 2008). It can be both internal and external in its nature. In an internal context, the elements of a SC are represented by various intra-organisational functions (such as for example sales and marketing, procurement, production planning, warehouse and transport management), whereas the external supply chain further encompasses movements of material, information and funds between companies and their suppliers, customers and various business partners. Simchi-Levi et Al. (2000, p.1) define supply chain mana gement (SCM) as “a set of approaches utilised to effectively integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time in order to minimise system-wide costs while satisfying service level requirements”.Lambert et al. (1998, p.1) expand the SCM definition to include the concept of value creation by depicting SCM as “the integration of business processes from end user through original suppliers that provides products, services, and information and hence add value for customers and other stakeholders”. In brief, SCM is about breaking down the barriers both within and between organisations and to ultimately link them in an integrated way to allow value-add to customers starting from product design to delivery through the planning, implementation and monitoring of the various flows. Supply chains are increasingly competing with other supply chains and as such the ultimate goal of effective SCM is superior business performance. The constituent parts of a supply chain are linked together via the flow of information and therefore the proper implementation and integration of various functions via information and communication technology (ICT) is vital for a successful SCM strategy. Supply chain integration (SCI) is an important part of SCM. It aims to facilitate the flow between all organisations in a supply chain and thus positively affects operational performance (Naylor et al., 1999; Bagchi et al. 2005). In short, a key tenet of SCM relates to the need to

move from fragmented supply chain architectures to configurations that are characterised by integration. The Role of e-Business Network technologies enabled by e-business standards have the potential to transform and integrate the functional elements of many industries. The Internet facilitates the abolition of the trade-off between richness and reach of information, which means that communication can occur at almost zero cost, without constraints on the richness of information. (see, for example: Graham et al., 2004; Evans and Wurster, 1997). Richness of information includes characteristics such as bandwidth, customisation, and interactivity. Reach is defined as the connectivity, and is the number of agents involved in exchanging information. Before the development of the Internet, to reach large numbers of people with rich information was a costly and time-consuming process and prone to errors due to manual information replication. Sweeney (2007) depicts that managing information flows in the supply chain is one of the most crucial activities in SCM as the flow of materials and money is usually initiated by information movements. Hardaker and Graham (2001) reinforce this by outlining that coordination in a supply chain occurs through the communication of orders, stock levels and demand feedback. Poor management of information flows essentially leads to the so-called bullwhip-effect that requires the holding of excessive levels of inventory. High demand visibility plays a strategic role in reducing inventory levels (Sweeney, 2007). Efficient and effective network-based communication structures in a supply chain have the potential to offset these effects. SCI and e-business are interrelated insofar as integrated e-business functions facilitate undistorted and accurate information sharing. In this way, optimal alignment of business functions represents the means to an effective overall SCI strategy. E-business Evolution and Concepts Integrated SCM has generated much interest dating back to the 1960s (e.g. Forrester 1961) because actions taken by one member in the supply chain can influence the profitability of all other members. However, the lack of ICT hindered the implementation of a more “systems -

oriented” approach. Interorganisational systems (IOS) such as electronic data interchange (EDI) have been used since the 1970s to link one or more organisations to their suppliers or customers through private value-added networks. Computer reservation systems in the airline industry were one of the pioneering applications within the domain of IOS (Monteiro and Macdonald, 1996; Pemberton et al., 2001) as with growing traffic airlines realised the need for efficient, quick, inexpensive, and accurate handling of their inventory information to communicate with travel agencies and other customers. IOS are automated information systems shared by two or more companies and differ from internal information systems by allowing information to be sent across organisational boundaries. However, entities within a supply chain often have different and conflicting objectives and interests and, therefore, complex interactions take place (Gregor and Johnston 2000). Riggins and Mukhopadhyay (1999) note some limitation of IOS. IOS implementation projects are intrinsically more risky than traditional internal IT projects. Companies have less control over processes due to the uncertainty of external trading partner actions. Inter organisational systems often have interdependent benefits and therefore the way in which a trading partner implements a system may affect the benefits realised by the other party. EDI, in its traditional form, is partially ineffective for allowing multiple enterprises to make use of common data and process models of the whole supply chain. It offers limited functionality and is problematic because it has not been standardised worldwide. EDI data is usually exchanged in batch fashion, which makes it complicated to handle exceptions. Process-level integration between multiple enterprises is, therefore, complex to implement because the data produced by one organisation’s EDI applications is frequently processed by dissimilar application sets in the receiving organisation. Although EDI can help to decrease transaction costs, it is rather inflexible and limited to the establishment of bilateral relationships typically for manufacturers that could afford its implementation at a relatively high cost per contact (Huber and Wagner, 2007). Companies in the supply chain are striving to increase control over their suppliers as well as to obtain up-to- date and accurate information about their business partners to enhance their supply chain competencies and agility. Traditional EDI provided only limited success in the context of SCI. The advent of more advanced ICT, most notably the Internet, offers the potential to move beyond the limited EDI transaction sets to automate the data flows across the supply chain, thus making a contribution to a more multilateral information exchange and the fostering of market-based exchanges in all transaction phases.

Recent developments in XML programming are enabling the transformation of the supply chain into a network facilitated by Internet technologies (Richmond et al., 1998). Overall, e- business solutions in general are seeking to enhance supply chain effectiveness and efficiency through the automation of business processes. The adoption of e-business can result in benefits such as higher transparency, reduced transaction, manufacturing and other costs, reduced unmonitored corporate spending (also known as maverick or rogue purchasing) and more centralised purchasing spend and more coordinated and efficient collaborations for such projects as joint product design. THE IMAPCT OF ERP SYSTEMS ON SCM With the change of the ICT landscape, supply chain design as opposed to supply chain coordination is becoming a core competency (Fine, 1998). At the same time, many firms have implemented company- wide systems, called enterprise resource planning (ERP) systems, which represent the logical extension of the material requirements planning (MRP) systems of the 1970s and of the manufacturing resource planning (MRP II) systems of the 1980s. Interestingly, Akkermans et al. (2003) note that the two trends seem to be evolving independently in industry, although from a managerial decision making perspective they are quite closely linked. ERP are systems that connect different functions within an organisation, as well as an organisati on’s supply chain partners (i.e. suppliers, distributors, third party logistics providers), enabling the various business partners and organisational entities to share information, such as order status, product schedules, sales records, as well as to plan production, logistics and marketing promotions. (Gunasekaran and Ngai, 2004, p.280) Akkermans et al. (2003, p.285) describe ERP as a “comprehensive transaction management system that integrates many kinds of information processing abilities and places dat a into a single database”. Prior to ERP, data were distributed across several separate databases and information processed through multiple disconnected information systems. Organisations typically maintained separate systems for purchasing, order management, human resources, and accounting. ERP amalgamates these intra- organisational sub-systems into a single seamless overarching system. Information system fragmentation has been identified as one of the primary causes of information delays and distortions along the supply chain (McAfee, 2002). ERP systems enhance transparency across the supply chain by increasing information velocity and thus reducing bullwhip effects.

Akkermans et al. (2003) argue that ERP adoption could be associated with significant gains in supply chain effectiveness. ERP is not limited to a single company, but may be viewed as an integrated system along the value chain of companies in the same industry, or across industries (Wang and Nah, 2001). Thus, ERP systems can be extended to incorporate additional e-Commerce and e-business operations and thereby increasing supply chain functionality (Olhanger and Selldin, 2003). ERP, by facilitating synchronous decision making, can be viewed as a key enabler of SCI (Su and Yang, 2010). e-Marketplace Adoption Drivers and Benefits Recent research, undertaken in the airline industry, has examined the impact of B2B e- marketplaces on organisations” supply chains by investigating adoption drivers and performance indicators (Wagner and Smyth, 2006). The authors developed industry-specific constructs by viewing e-marketplaces as a technological innovation and examining the contexts in which e-marketplaces are adopted. The airline industry lends itself as a case in point for investigation as airlines have been using ICT and EDI standards to support the procurement of goods and services for more than 40 years (Neil and Purchase, 2004). Within the realm of their study, Wagner and Smyth (2006) note that firm size has a significant effect on eMarketplace adoption, whereby smaller organisations often adhere to more traditional forms of purchasing. Larger firms seem to be less subjected to knowledge and technology barriers. Other drivers or strategic stimuli for e-Marketplace adoption include the extent of strategic partnerships, the level of overall ICT sophistication and the level of Internet services used. In contrast to theoretically derived expectations, factors such as pressures from the business context, the level of resource/information sharing, the extent of outsourcing and joint procurement integration, and the purchasing organisation centralisation / decentralisation could not be confirmed as adoption drivers. The findings further suggest that e-Marketplace use is positively related to overall sati sfaction with and performance of an organisation’s procurement practices. E-marketplaces do reduce procurement related search costs. Other benefits typically occur in the facilitation of order processes, higher transparency of suppliers, reduced inventories, product price reductions and reductions in purchase order costs. In a similar manner Eng (2004)

found that the most notable transactional benefit from e-Marketplace participation is lower unit costs of procurement, followed by dynamic and global sourcing by being able to unload excess inventories and to source more competitively. E-marketplaces contribute to higher SCM efficiency due to reduced time between billing and payment and efficient exchange of information. The latter is also seen as the key strategic benefit of e-marketplaces, along with streamlined SCM processes resulting in increased customer satisfaction. Wagner and Smyth (2006) further note that commodities where markets are fragmented to a higher extent are traded on e-marketplaces to a higher extent than commodities with a rather concentrated supply base. Savings from e-Marketplace adoption, which occur more in process costs rather than product costs, tend to exceed the investment costs. However, e-Marketplace adoption does not have a direct impact on overall financial performance, but on operational effectiveness and efficiency. The findings also suggest that the adoption of e-marketplaces is highly relevant to e-procurement implementation among airlines. The results also suggest that many companies in the industry still make only rudimentary use of all offered services although the overall e-Marketplace diffusion level is relatively high. Eng (2004) researched which SCM e-Marketplace functions companies use. The most popular use of the e-Marketplace is in auctions and reverse auctions (52%), followed next by processing as regards online ordering, payment, non-technical negotiations, and customer or supplier information management (47%). E-marketplaces are further used for listing products or making purchases from catalogues (35%), searching for buyers or sellers (33%), and for improved online communications and exchanges of information (25%). However, technical exchange and development (11%) is the least subscribed function. Inter-firm relationship management (14%) and collaborative project management (14%) reported a low percentage of usage. Eng’s (2004) research thus proposes that e -marketplaces are more popular for transaction- based exchange than the strategic type of exchange. In particular, the auctions facility of an e- Marketplace exhibits the most significant contribution to unit cost reduction. By comparison, the most significant contribution of e-marketplaces to streamlined supply chain operations is improved communication and information exchange. To summarise, an e-Marketplace facilitates the procurement process by using the Internet as a platform for communications. An e-Marketplace provides the basis for one – off transactions without requiring long-term

commitment, or negatively affecting supply chain processes in a significant manner (Eng, 2004). Wagner and Smyth (2006) note, however, that there are still a number of challenges ahead for eMarketplace implementation. These include further supplier integration, training and education of staff and the development of further e-Marketplace services, as the technology is often not yet ready to support the range of airline requirements. Overall, research indicates that industries that are information intensive derive more advantages from e-Marketplace implementation and are more likely to advance with the technology. Research gaps These gaps have been discovered based on the observations/conclusion of the literature review: 1. More information does not reduce perceived ambiguity; rather, it increases it. 2. The web is altering how businesses connect with their suppliers and customers. 3. Businesses that have adopted e-commerce report a moderate amount of benefit

Chapter-3 Research methodology Research design The research was conducted with operational businesses that engage in B2B e-commerce. And it was restricted to those organizations' e-business experts, general managers, and purchasing managers. The researcher's biggest challenge was that respondents were unresponsive, uninterested, and slow to answer questionnaires. Study Tools The study used the factors for the advantages of online shopping proposed by (Lin, Huang, and Burn, 2007) and (Chen, 2010). The authors (Eng, 2004) and (Rao, Truong, Senecal, and Le, 2007) were consulted for their expertise in supply chain management. The study's author relied on (Naidoo, 2007) and (Rao, Truong, Senecal, and Le, 2007) to learn about the practices of 8 different online marketplaces. Study model The model's three variables are supply chain management, e-marketplace participation, and the advantages of online shopping. Pros of Online Shopping There is a favorable direct effect (H2) on e-marketplace utilization from SCM E-marketplace and e-commerce advantages. Additionally, the use of electronic marketplaces has a direct and beneficial effect on SCM (H3). Last but not least, e-marketplace mediation facilitates indirect favorable effects of e-commerce on supply chain management (H4). To design the model, the researcher relies on e-commerce advantages factors given by (Lin, Huang and Burn, 2007) and (Chen, 2010). The authors (Eng, 2004) and (Rao, Truong, Senecal, and Le, 2007) were consulted for their expertise in supply chain management. The researcher used (Naidoo, 2007) and (Rao, Truong, Senecal, and Le, 2007) as sources on the effectiveness of online marketplaces.

Sources of information The goal of the research was to discover how e-commerce adoption has influenced the supply chain's expenditures and the pace at which items are moved through it. Convenience surveys are one kind of survey approach that has been used. The questionnaire approach was employed to gather primary data, while a variety of magazines, books, and older research publications were utilized to obtain secondary data. Primary Data- A well-designed, well-structured questionnaire is used to collect the primary data for this research. The questionnaire presents the respondents with a number of quantitative and qualitative options; they are asked to choose the one that best describes them. Secondary Data- Secondary data refers to any information gathered for the purpose of other than closing a report and is utilized to generate a preliminary grasp of the study topic. Secondary sources include the internet, libraries, corporate reports, newspapers, and other public documents. Numerous publications served as sources of information for this study.

Data analysis To find out the impact of e-commerce on Jumia Ghana logistics company. Among the research objectives was to find out the impact of e-ecommerce adoption on Jumia Ghana Company. Among the findings are presented in the figures as follows; Access to variety of commodities From the figure, out of the 50 employees, 23 of them strongly agreed that e-commerce adoption will enable consumers have access to different kinds of goods and serivices to choose from. 17 of the respondents who represent 34% also supported this statement. 4 of the respondents forming 8% disagreed whilst 6 of the respondents were neutral.

Another significant impact of ecommerce adoption on Jumia Ghana Company was sales increment as a result of large market the company was expose to due ecommerce platform. In figure 1.2, out of the 50 employees who responded to the questionnaires, 18 strongly agreed, 16 agreed and 12 of them disagreed. Also none of the respondents totally disagreed and only 4 employees who represents 8% were remained neutral. online promotions

Figure illustrates the extent at which e-commerce adoption has helped growth in Jumial Logistic Company. It was found that online promotions has gone up and 11 and 20 of the respondents representing 22% and 40% respectfully strongly agreed and agreed. However, 2 of the respondents, which represent 4%, disagreed and 34% maintained neutral. Managerial factors The managerial related factors that affect Jumia Ghana Logistics are described in the figures to 1.10. The averages mean of the management factors were 4.24 meaning the respondents agreed to the existence of management characteristics obstacles. Ecommerce adoption. 18 of the respondents strongly agreed, 26 of the respondents agreed and 6 of the respondents were uncertain on the statement. level of management education The figure describes the literacy rate of technology acceptance by management. 9 of the respondents disagreed that level of management technology acceptance is a hindrance to logistics companies. 17 of the respondents were remained neutral whilst 7 agreed. Moreover, 17 of the respondents strongly affirmed that technological acceptance by management is a challenge for logistics forms to successfully adapt e-commerce.

Discussion of findings Reliability as well as validity tests were conducted to reveal the reliability, objectiveness and consistency within the data. Cronbach’s alpha Coefficient on indicators of knowledge, attitudes and behaviors is 0.708, and the average is>0.7, indicating a high reliability of the questionnaire. In term of validity, KMO and Bartlett Tests were conducted. The value of factor analysis was 0.785, and also the Bartlett's test of sphericity was significant (P<0.001). This helped to indicate the structural validity of the questionnaire. Hence, the questionnaire was both reliable and valid for our research purposes. The study revealed that 62.7% of the respondents are males and the females were 37.8%. It was found that the total mean of the gender statistics was 1.37 indicating more males (male=1, female=0). The mean of the highest educational qualification of the respondents was 2.2818, which are (University=2, 49.1%). Moreover, the postgraduates were 21 which represent 19.1% and least were high school graduates constituting 18.2% of the total respondents. The highest income among the respondents were $201-$300 which represents 44%. The information revealed that least group of employees receive income of $300 and above. Majority of the respondents were from the IT section constituting 34%. Most of the employees of Jumia were within 6- 10 years’ work of experience. Impact of e-commerce adoption on Jumia Logistics Company The study identified the impact of e-ecommerce adoption on Jumia Logistics Company in Ghana. The results revealed that e-commerce has a significant impact on Logistics Company such that customers have easy access to variety of commodities, increases sales volume the company involved, online promotions and convenience. The revelation of this study confirmed many researchers finding. The importance of e-commerce is huge on developing countries. Similarly, Ohidujjaman, et al (2013), emphasized e-commerce can achieve tremendous benefits to developing countries if it is applicable as an ideal business purpose. Ecommerce is a revolution in business practices. E-commerce adoption allows consumers to select from a lot, compare prices, quality, quantity, colors, brand, preference and lifestyle. 23 of the respondent strongly agreed that e-commerce adoption will enable consumers have access to different kinds of goods and serivices to choose

from. 17 of the respondents who represent 34% also supported this statement. 4 of the respondents forming 8% disagreed whilst 6 of the respondents were neutral. E-commerce could deliver a significant benefit to businesses in developing countries by increasing their control over its place in the supply chain, thus improving its market efficiency (Molla & Heeks, 2017). Convenience is one of the benefits that customer gets from the e-commerce and thus increasing customer satisfaction. The findings of this present study support that of Abdul that the adoption of e- ecommerce makes it more convenient for consumers to sit home and buy whatever. This reduces the time spent on shopping and other carriage duties associated with it.

Limitations of e-commerce With all the benefits there are certain limitations of e-commerce which are listed below: i. Lack of security, reliability and communication protocols. ii. Increase in competition and rapidly changing technology. iii. Cost of computing equipment and access to internet. iv. Numerous cyber crimes can be penetrated v. Technical knowledge is must for participating in e-commerce and that will create social divisions between people.

Future research directions E-business has not only to deal with technology, but also a range of important human and organisational issues. Studies of ICT-based systems in organisations consistently demonstrate that insufficient consideration of a system’s social environment and the relationships between people and technology has been a major reason why investments have often been assessed as being a failure, or only a partial success (e.g. Nathan et al. 2003).The technical and social aspects (i.e. “hard” and “soft” wiring) of e -business need to be designed and optimised concurrently. Without top management support, e-business is difficult to implement successfully. For smaller firms in particular, where resources and ICT/IOS sophistication are limited, the lack of financial resources, managerial and technological skills and system integration can inhibit e-business adoption. More adequate training and education in e-business and change management is a critical factor for the future, as companies tend to express hesitation about the use of emerging e-business technologies. Further research needs to focus on these issues. Some of the barriers to e-business adoption are related to human factors (e.g. insufficient leadership, unwillingness to cooperate, resistance to change, inertia, lack of trust, personal insecurity, fear of losing jobs, threat of being by-passed by technology, communication problems and difficulties in aligning the processes and cultures of partner companies). Other barriers relate to structures, processes and systems (e.g. lack of resources, the plethora of different standards, lack of services provided by emarketplaces). Many organisations have focused on a few key e-business services to date, but are not considering potential benefits across the range of services available and across the supply chain (Huber et al. 2004). Currently available e-business solutions are still some way from covering the entire spectrum of business requirements and relatively few options are readily available to support or automate complex activities. They have the potential to evolve from matchmaking or transaction support focus to knowledge and trust networks, where common workflows can enable SCM on a more widespread basis in future. However, more research is required to better understand these issues across a variety of business contexts and sectors.

Conclusion Technology and the internet affect the supply chain in companies that exist, easy information exchange, real-time communication with customers or suppliers, quick response, etc. These benefits have an impact on increasing customer satisfaction, efficiency and effectiveness, as well as the company's opportunities for market development. Companies also need to understand how technology does not automatically increase productivity, but needs support from knowledge management. To be a successful knowledge management company, you need to have a close relationship Business, binding perspectives and architecture, leadership knowledge, creation and exchange of a knowledge culture, continuous learning, developed technological infrastructure and systematic organizational knowledge processes. This application system is designed into two parts, namely the front-end and back-end. The front-end can be used by consumers by accessing it via a smartphone. The back-end section can be accessed by the Coffee for sale admin using a computer. Maintaining the collaboration with institutions related to the agricultural industry, especially coffee farming. Developing the user interface on the Coffee for sale application to increase the ease of interaction between sellers and consumers. Developing a business model so that it can be adapted to the conditions in the future. It is important to note, however, that organisation embarking on an e-business processes. It is important to note, however, that organisation embarking on an e-business initiative have to consider a sensible alignment of technology (as an enabler) with their business strategy in order to be successful. The introduction of e- business might serve as a ‘Trogan Horse’ to enforce necessary changes in organisational structures and processes (e.g. part standardisation or use of a single coding system). E-business can drive new organisational forms (such as a virtual organisations), fufill certain tasks in the inter-firm context and allow firms to improve supply chain processes. Therefore, e-business has a vital role to play in integrated SCM. E-commerce technology has helped companies differently. This not only helped businesses and firms sell their products and services around the world and easily, but also helped customers make purchases at any convenient time and everywhere. Since its existence, until now, there were no restrictions on the search for advanced technologies that would meet the current situation of e-commerce by experts and enterprises. This means that the e-commerce we see today will not be the same in the next five years.

E-commerce will see enormous growth and advances in technology, as it continues to grow stronger in business both in developed and developing countries. As they say, “growing brings many benefits and problems ”, so we have to put ourselves in a better position to cope with the challenges that accompany the growth of e-commerce technologies. In this paper the main factors and key problems of development of international ecommerce under the conditions of globalizations were defined. In addition, a discriminant analysis of selected factors was conducted and a model of differentiation in the development of integration processes, on the basis of which we can clearly see the importance of selected indicators in the process of integration into the world ecommerce market, was calculated. Also, it is proved that Ukraine is not an exception and also follows the trends in the introduction of e-commerce methods in all forms of business. The processes of globalization have also touched the online sphere, which 355 will undoubtedly become the driving force in the development of this sphere and, possibly, the smooth displacement of the relative sector.

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