Supply Chain Management Application in E-Commerce Company Taking JD.com as an example
Supply Chain Management
Application in E-Commerce Company
Taking JD.com as an example
MACC 5P31
Advanced Management Accounting
Section 2
Instructor: Dr. Hemantha Herath
Yifan ZHU 5294269
Zhulai LI 5608690
Ying GONG 5727086
Yahong HU 5718697
Due date: April 2nd, 2015
Abstract
The target of this paper is to figure out the best way for the JD.com which is the largest B2C online shopping website in China in the area of supply chain management. The main issue is under the assumption of using two logistic methods including self-run logistic mode and third-party logistic mode for the company to ship the products. Under this condition, we use the Monte-Carlo Model to calculate the total cost of two methods and then to analysis two models in specific to work out which mode cost less and has the high efficiency. At last, we offer our solutions and recommendations to this company.
1 INTRODUCTION
In China, an increasing number of start-up online retailer companies had emerged since last decade. Most of them achieved great operation successes, and even some of them have been the listed companies on the Hong Kong and North American capital market. These companies such as ALIBABA, SUNING and JD. However, it is no doubt that some logistic corporations are also developing smoothly. They have their own operating logistic channels and system, which makes most of online shopping commodities, could be delivered within three days. Because of the widespread shipping stations located in china, most online retailers rely on their competitive advantages on the efficient shipping channel. But in recent several years, these china leading online retailers take the step to consider whether should establish their own delivery system rather than relying other partners simply. In this case, we try to use the Monte-Carlo simulation model to compare JD’s supply chain and third-party delivery companies cost model, we will
Application in E-Commerce Company
Taking JD.com as an example
MACC 5P31
Advanced Management Accounting
Section 2
Instructor: Dr. Hemantha Herath
Yifan ZHU 5294269
Zhulai LI 5608690
Ying GONG 5727086
Yahong HU 5718697
Due date: April 2nd, 2015
Abstract
The target of this paper is to figure out the best way for the JD.com which is the largest B2C online shopping website in China in the area of supply chain management. The main issue is under the assumption of using two logistic methods including self-run logistic mode and third-party logistic mode for the company to ship the products. Under this condition, we use the Monte-Carlo Model to calculate the total cost of two methods and then to analysis two models in specific to work out which mode cost less and has the high efficiency. At last, we offer our solutions and recommendations to this company.
1 INTRODUCTION
In China, an increasing number of start-up online retailer companies had emerged since last decade. Most of them achieved great operation successes, and even some of them have been the listed companies on the Hong Kong and North American capital market. These companies such as ALIBABA, SUNING and JD. However, it is no doubt that some logistic corporations are also developing smoothly. They have their own operating logistic channels and system, which makes most of online shopping commodities, could be delivered within three days. Because of the widespread shipping stations located in china, most online retailers rely on their competitive advantages on the efficient shipping channel. But in recent several years, these china leading online retailers take the step to consider whether should establish their own delivery system rather than relying other partners simply. In this case, we try to use the Monte-Carlo simulation model to compare JD’s supply chain and third-party delivery companies cost model, we will
References: 1. Liusheng Chun & Liyan Feng (2012). Third-party logistics. Dalian, Liaoning, China: Northeastern University of Finance Press. 2 4. Guang Yang (2011).Relationships between E-Commerce and Supply Chain Management 5. Y.S.Man (2006). Performance Measurement and Management of Third Party Logistics: An Organisational Theory approach 6 7. Huaqin Zhang, Guojie Zhao, Yuanyuan Zhang (2008). On Commercial Enterprises’Choice between Self-managed Logistics and Outsourcing Logistics 8