Business Advantage from E-Commerce in Fashion Industry Essay - 1

Business Advantage from E-Commerce in Fashion Industry - Essay Example Internet marketing or e tailing offers other distinct advantages of (Marciniak & Bruce, 2009, p.259). Fernie & Sparks (2009) proposed a model that stated the use of technology for ensuring procurement practices at the organization. The model largely states the use of technology intensive software packages as well as use of online channel to facilitate competitive advantage(Fernie & Sparks, 2009, p.29). Outbound logistics for e-tailing industry implies the cost for delivery of goods to the customers. The revenue margin gained from cost savings in inbound logistics helps in taking care of the cost of outbound logistics. Fashion retailers can be classified into four main categories namely, brick and mortar based retailers, virtual e-retailers, catalogue based retailers and multi-channel retailers. Internet has largely changed the supply chain dynamics of the fashion retailers with firms trying to use the internet for developing better relationships with the customers (Marciniak & Bruce, 2009, p.260). Internet based online marketing firstly helps in providing efficient and fast service to the customers as e-tailing helps in integrating the sales activities with after sales support to generate greater value for the customers. Secondly, cost based advantages include reduced cost of inbound logistics as firms eliminate many intermediaries who serve to reduce the margins while not adding any significant value to the product offering. Thirdly firms also get access to a large database of customers which can be subjected to data mining techniques to generate competitive advantage (Windischhofer, 2003, p.24) . Marketing and supply chain management practices are largely correlated with each other. Marketing strategies are essentially forming the basis for supply chain activities of an organization. Supply chain strategies are largely the outcomes of the relationship between the suppliers.