Today, the development of e-business affects consistently the development of conventional business because e-business tends to grow more and more popular, while many customers prefer to purchase goods and services online. At the same, the development of e-business is different from that of conventional business. The difference between e-business and conventional business can be traced in different fields, including the supply-chain management.
Traditionally, the supply-chain management is affected by several factors. One of the major factors influencing the supply-chain management is the demand. In this respect, it should be said that demand influences equally e-business and conventional business because the decrease of demand naturally leads to the decrease in the supply of certain goods and services. On the other hand, e-business can be more flexible in terms of its dependence on demand because companies operating online can change goods and services they sale because often online retailers are not linked to the production of products and services. Instead, they mainly perform intermediary functions linking customers and producers of goods and services.
However, the most distinct feature of e-business is shipping or supply which is quite different from supply in conventional business. In fact, the delivery of a good or service to customers is an essential part of business, including e-business. The supply-chain management should develop efficient system of shipping which allows customers to track the process of shipping of product. E-business needs to ensure customers in the reliability of its shipping services to maintain the confidence of customers in the reliability of e-company.
Thus, e-business and conventional business need effective supply-chain management which though is different for e-business and conventional business due to the different nature of business.