Wednesday, May 6, 2020

Impact of E-Commerce on Operations Management Essay

Operations management has had to deal with a new type of business management in a business world that is vastly changing with new technology. Operations managers have had to adjust and retool how business is done since the inception of e-commerce. The impact that e-commerce has had on how an operations manager address a situation can vary from extreme to barely noticeable. Management has also had to learn how to adopt new technology with the growing e-commerce world. This has brought obstacles and resolutions within a business. E-commerce has also allowed businesses to grow where before the business would be limited to the area that surrounded the business. E-commerce has helped shape the operations management field over the last few†¦show more content†¦For instance, the business will need to make sure that the e-commerce side of the business is working in synergy with all other aspects of the business. The business will also want to decide which type of layout will best su it their needs. E-commerce has changed how operations managers look at store and factory layouts. In a store layout the idea of herding customers through a given area to get them to the checkout is a great tool to make extra sales. For an e-commerce customer this layout may not work and end up irritating a customer in the end. Operations managers need to adjust their layouts to accommodate the new type of business. Inventory has been an area that has impacted e-commerce and the operations management processes the most. In the past operations would plan on having a specific number of items on hand in each store. With e-commerce the thought of inventory has become a little trickier. Today a business can conduct business through e-commerce and have no inventory. The business could choose to have the products drop shipped directly from the manufacturer allowing for the business to save money on storage, inventory, and man hours to keep track of the inventory. E-commerce has also made t he decision of how much of an item to order become not as important as it used to be. There are benefits for a business to keep an inventory which include the following: cope with random or unexpectedShow MoreRelatedE-Commerce Strategies for Grocery Stores845 Words   |  3 Pagese-Commerce Strategies for Grocery Stores Introduction Retailing is one of the highest-velocity business models there are, predicated on a rapid turnover of inventory. Of the many forms of retailing, food and grocery have the most rapid inventory turns of all and the highest risk of inventory loss due to spoilage and rapid obsolescence (Gunasekaran, Marri, McGaughey, Nebhwani, 2002). 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