Supply Chain Management - Essay Example

The linking of information systems on the Internet, provides the business with one set of information, such as status of counts in the warehouse and the consumers’ payment information, while the customer finds out through the company’s Internet portal just how much of the product the business has, and the projected delivery dates. Amazon.com is one such example of purchasing online with a two-sided supply chain infrastructure. In the wholesale jewellery components industry, the more you buy, the greater discount you get on your supplies, as shown in the figure (1) above.

Therefore, the ability to see the discounts in the components ordering sheet, allows for cost savings up front. Alternatively, showing online how many components are left in stock, particularly if there are only a limited few, or if it is in the process of being discontinued, gives a business time to find other resources and get the purchasing infrastructure up and running in time for the next order (Fire Mountain Gems, 20115; Ackerman & Bodgraven, 2007). Account holders also see all previous orders in case they want to re-order a particular item, or a complete former order.

Shipping is a standard USD 5.00, no matter how much you order, a bargain for larger orders. For such a company, communicating with its customers, including dealing with complaints and developing resolutions, is essential to continued successful relationships to provide what the customers want. The purchasing and chain management infrastructures must be efficient and reliable, both inside the business and outside to the customers (Ackerman & Bodgraven, 2007). To achieve such efficiency, requires a joint venture correlation between the IT department (handles database and web development), the product purchasing department, and the sales and marketing department, each of whom provide the information required as to what is needed for an online