May 2025

E-Commerce and the Evaluation

of Supply Chains: A New Era of
Operations
__________________________________________________________________________________________________________________________________
Sara Masri, Nour Alasaad, Batool Almasri, Razan Samaneh, Ahmad Samaneh
Department of Industrial Engineering, An- Najah National University (NNU)

ABSTRACT
_______________________________________________________________________________________________________________________________

This research analyzes the e-commerce phenomenon and its effects on the global supply chain management
domain. The study reveals how technological advancement and the rising popularity of online shopping
have transformed supply chains into more agile, information, intelligence, and customer-driven systems.
Specific focus areas include the contribution of real-time inventory control, artificial intelligence, ERP
systems and IoT towards efficiency, precision and responsiveness. Issues of overflowing inventory,
inadequate resource utilization and tardy deliveries are examined along with newer solutions such as digital
twins and circular supply chains. The results reveal the growing need for variable supply chains and those
integrated with information infrastructure to retain market leverage within a digital economy.
_______________________________________________________________________________________________________________________________
Keywords: E-Commerce, Supply Chain dynamic and consumer-focused. Companies are
Management, Supply Chain Evaluation, Digital adapting to the need for sustainable practices,
Supply Chain, Digital Transformation, Online real-time inventory management, and faster
Shopping. delivery standards. Researchers examined
information from major online retailers
WE’RE SEEING A RAPID worldwide, such as Amazon, Alibaba, and
Walmart.
TRANSFORMATION IN SUPPLY
CHAINS

A
s e-commerce
grows, the impact
on supply chains
The study conducted over recent years, examined
the ways e-commerce has reshaped supply chain Fig.1 Supply Chain Management in E-commerce
operations globally.
With the rapid rise of online shopping, the
structure of the supply chain is becoming more
 2
I. Introduction & Definition https://www.researchgate.net/publication/3885265
____________________________________________________________ 14
E-commerce supply chain efficiency refers to the Harsono, A. (2014). The impact of e-commerce in
capacity of an e-commerce company to deliver supply chain management at Dell Inc. Journal of
products to customers in a timely, cost-effective, Multidisciplinary Engineering Science and
and reliable manner. It encompasses all aspects of Technology, 1(3), 85–92.
the supply chain, from product procurement to https://www.jmest.org/wp-content/uploads/JMES
warehousing and delivery. TN42350058.pdf
Commerce, as a fundamental economic activity,
involves the purchasing and selling of products. II. Background & Literature
The first instance of e-commerce can be traced Review
back to electronic funds transfers, which enabled ____________________________________________________________

safe and effective money transactions between The rapid growth of e-business has significantly
financial institutions. transformed the landscape of supply chain
planning and configuration. In particular, the rise
Electronic commerce, or e-commerce, began to of live e-commerce has introduced new demands
show signs of revival in 2003, expanding on responsiveness, inventory accuracy, and
alongside the broader economy, but at a technological adaptability. Businesses are now
significantly faster pace. Consequently, e- expected to operate in real time, reacting swiftly
commerce progressively increased its share of the to fluctuations in demand and changes in
overall economy. E-commerce specifically refers consumer behavior driven by digital platforms.
to the sale and purchase of goods or services The article "The Impact of Live E-commerce on
through electronic means, particularly over the Supply Chain Management: Challenges,
Internet. Adaptations, and Strategic Optimizations" by
Xiaotong Hou, Tianyu Xu, and Yichen Xu (2023)
In recent years, the rapid expansion of e- analyzes the influence of live e-commerce on
commerce has significantly transformed global supply chain management. The research describes
trade dynamics. By 2021, the number of online the challenges faced by supply chain systems in
shoppers reached approximately 2.14 billion, with relation to the evolving and rapid nature of live e-
global e-commerce sales amounting to around 4.9 commerce, such as real-time inventory
trillion USD. This explosive growth has led to the management and rapid response to instantaneous
development of highly complex supply chains, spikes in demand during live streaming.
requiring companies to efficiently manage the The article indicates that firms need to come up
flow of goods and services to meet rising with adaptable and dynamic approaches, for
consumer expectations. Therefore, supply chain instance, utilizing artificial intelligence (AI) and
management strategies have become critical for machine learning methods of predicting stock and
digital retailers aiming to streamline operations finding logistic options that accommodate
and enhance customer satisfaction. A deep unexpected surges in demand. The article also
understanding of e-commerce supply chain mentions the significance of coordinating
dynamics is now essential for businesses seeking promotional activities with supply chain
to optimize their processes and capitalize on management so that the products are available in
future growth opportunities. response to live promotion activities.
Sharma, V., & Dave, R. (2024). A comprehensive
The report concludes by emphasizing the need to
review of e-commerce supply chain management.
make supply chains flexible and capable of
International Journal of Computer Techniques,
responding quickly to the needs of live e-
11(2).
commerce in order to succeed in this field.
 3
process. As individuals increasingly depend on
The literature on commerce and its implications online shopping, the traditional supply chain
for supply chains reflects a dynamic interaction architecture must evolve to be adaptive and
between strategic management practice and responsive. The paper states that e-SCM enables
technological advancement. In this context, the businesses to get information about customer
examination of this interaction entails an demand in real-time. It improves business and
understanding of the evolution of supply chain logistics management. Bhuiyan explains how it
management (SCM) through the lens of e- becomes feasible through the combination of e-
business and information technology, as identified fulfillment, e-procurement, and e-distribution
in the articles reviewed. processes for companies to operate successfully in
Hou, X., Xu, T., & Xu, Y. (2023). The impact of global markets. In addition to meeting customers'
live e-commerce on supply chain management: changing needs for competitive pricing and on-
Challenges, adaptations, and strategic time delivery, the move to e-business highlights
optimizations. ResearchGate. the importance of supply chain management
https://www.researchgate.net/publication/3861516 (SCM) in navigating the dynamics of a globalized
60_The_Impact_of_Live_E- economy.
commerce_on_Supply_Chain_Management_Chall Mohammad Nurul Karim Bhuiyan, M. (2013).
enges_Adaptations_and_Strategic_Optimizations Application of E-SCM Strategies to Enhance
Efficiency and Effectiveness in the Clothing
Yujun (Yujun Eugene) Xiao, 2006, analyzed how Retail Sector.
e-business can be aligned with global supply chain https://core.ac.uk/download/pdf/234685127.pdf
management. The article identifies that the biggest When taken as a whole, these articles show a clear
capability of businesses nowadays is to form evolution in supply chains brought about by trade
partnerships with supply chain partners. Xiao and technology. The application of e-business in
believes that supply chain management (SCM) is supply chain management has not only enhanced
today a critical business strategy, where successful the way businesses conduct their operations but
companies have to coordinate their operational has also made supply chains a key component in
plans with their supply chain systems.The article remaining competitive in satisfying the demands
discusses how businesses are improving supply of consumers today. The significant critique of
chain agility and efficiency by implementing more these works indicates that there is consensus on
modern management techniques like Total Quality businesses having to alter and adapt their supply
Management (TQM) and Enterprise Resource chain strategies to thrive in a world that is
Planning (ERP). These aren't limited to their own increasingly connected and technology-driven.
operations; the largest businesses collaborate
closely with their supply chain partners on issues Current Trendsetters
like product development and logistics in order to
The e-commerce industry is experiencing rapid
identify competitive opportunities.
and continuous growth, making supply chain
(Yujun Eugene) Xiao, Y. (2006). The integration
efficiency increasingly critical for e-commerce
of international supply chain management and E-
companies. In recent years, there has been a
business.
noticeable trend toward faster, more appropriate,
https://dspace.mit.edu/handle/1721.1/35117
and more convenient delivery options. Today’s
customers expect to receive their orders within
Nurul Karim Bhuiyan (2013) authored an article
days or even within hours putting significant
in 2013 that examines the application of e-SCM
pressure on e-commerce companies to maintain
strategies in garment retailing. Bhuiyan refers to
highly efficient supply chains.
the transformative impact of information
technology on consumerism and the supply chain Market Share
 4
Amazon remains the world’s largest online retail
platform, commanding a market share of over ● Supplier: Orders for raw materials that are
30%. Its success is largely attributed to its highly to be transformed into certain products are
efficient supply chain. Amazon’s logistics forwarded to a supplier who delivers
network is capable of delivering products quickly everything to a factory or manufacturing
and securely, even during peak shopping seasons. plant for further assembly. In instances,
these materials or products might already
Importance of the Sector be semi assembled and require no further
fabrication processes on them.
The e-commerce sector plays a vital role in the ● Warehouse: The second step in the
global economy. In 2022, global e-commerce ecommerce logistics workflow is moving
sales reached approximately $5.2 trillion, and inbound goods to the warehouse, which is
projections indicate continued growth in the where the inventory is physically kept and
coming years. managed until such time as delivery is
required for collection by your customers
Scope of Industry Growth
as in this ecommerce business model,
The e-commerce industry is expected to expand at payment.
a compound annual growth rate (CAGR) of 12.2% ● Fulfillment Centre: After an order has
between 2022 and 2027. This growth will be been placed for a request made on your
driven by several factors, including the increasing ecommerce store, the purchased products
popularity of online shopping, the expansion of are then moved from the warehouse to the
the middle-class consumer base, and the fulfillment centre, one step further down
widespread use of smart electronic devices. the line of your supply chain.
● Carrier: In modern distribution, the
Savaliya, V., & Vidani, J. (2024). E-commerce carrier is the final person in your supply
supply chain efficiency: A case study of Amazon chain and in his or her role, he takes
e-commerce company. Journal of Advanced complete responsibility for the e-
Research in Business Law and Technology commerce package as defined forwards
Management, 7(1), 31–47. Retrieved from delivery to the destined address.
https://papers.ssrn.com/sol3/papers.cfm? ● Customer: The final player in the supply
abstract_id=4849852 chain of e-commerce is the customer.
Customers receive the products, enjoy
III. E-commerce Supply Chain them and both sides are satisfied in typical
Operations conditions.
____________________________________________________________

This sequence shows how the different stages

E-commerce supply chain management is
work together to deliver products from the
concerned with the general movement of goods,
supplier to the customer in e-commerce, focusing
materials, and data between various supplier and
on the importance of efficient integration in each
buyer levels. There are five main stages and
step to ensure fast delivery and high quality
participants in this flow.
service.

Sharma, V., & Dave, R. (2024). A comprehensive

review of e-commerce supply chain management.
International Journal of Computer Techniques,
11(2).
https://www.researchgate.net/publication/3885265
Fig. 2 Illustration of a logistical procedure for e-
commerce 14
 5
IV. Technology in E-Commerce Journal of Advanced Research in Business
Supply Chains Law and Technology Management, 7(1),
____________________________________________________________ 31–47. Retrieved from
https://papers.ssrn.com/sol3/papers.cfm?
E-commerce supply chains have become
abstract_id=4849852
increasingly dependent on advanced technologies
4. TVS Supply Chain Solutions. (2024, August
to improve speed, accuracy, and responsiveness. 14). The Role of Technology in eCommerce
Artificial Intelligence (AI) and machine learning Supply Chain Management. Retrieved from
are now widely used for demand forecasting and https://www.tvsscs.com/the-role-of-
inventory optimization, allowing companies to technology-in-ecommerce-supply-chain-
reduce stockouts and overstocks while improving management/
overall efficiency (Bhuiyan, 2013). Enterprise
Resource Planning (ERP) systems have become
essential tools, integrating operations like
procurement, warehousing, and distribution into a V. Impact of E-Commerce on
unified digital platform (Hou, Xu, & Xu, 2024). Traditional Supply Chain
____________________________________________________________
Moreover, the Internet of Things (loT) is
revolutionizing real-time tracking and The effect of using e-commerce on supply chain
environmental monitoring, enabling firms to efficiency is very important when looking at how
manage product flow and condition across global well this technology works in managing supply
networks (Hou, Xu, & Xu, 2024). Automation, chains. Using e-commerce has made supply
including robotics in warehouses, reduces manual chains more efficient. It helped reduce costs and
costs and increases processing speed, while made processes faster. Many participants noticed
blockchain and RFID technologies transactions clear improvements after they started using e-
(Vidani & Vivek, 2024). Together, these commerce.
technologies form the backbone of modern digital
supply chains. One major improvement was faster delivery times.
This happened because the order process became
1. Bhuiyan, M. N. K. (2013). Application of more automated and organized. E-commerce also
E-SCM Strategies to Enhance Efficiency helped lower inventory costs by improving how
and Effectiveness in the Clothing Retail businesses manage stock, mainly through better
Sector. Industrial Engineering Letters, forecasting of customer demand and more
3(5), 1–10. accurate orders. These changes helped companies
https://iiste.org/Journals/index.php/IEL/art save money, especially the companies that depend
icle/view/8006 a lot on inventory.
2. Hou, X., Xu, T., & Xu, Y. (2023). The
impact of live e-commerce on supply The order accuracy got better thanks to e-
chain management: Challenges, commerce. This is because automated systems
adaptations, and strategic optimizations. reduce human mistakes and help make sure the
ResearchGate. right products are sent. Better order accuracy can
https://www.researchgate.net/publication/3 also lead to happier customers, which is essential
86151660_The_Impact_of_Live_E- for any business.
commerce_on_Supply_Chain_Manageme
nt_Challenges_Adaptations_and_Strategic There are some key performance indicators (KPIs)
_Optimizations such as order cycle time and inventory turnover.
3. Savaliya, V., & Vidani, J. (2024). E- Order cycle time is how long it takes from placing
commerce supply chain efficiency: A case an order until it’s delivered. Inventory turnover
study of Amazon e-commerce company. shows how fast products are sold and replaced. By
 6
measuring these, businesses were able to see the VI. Performance Metrics and
results of using e-commerce and improve their KPIs
supply chain operations. ____________________________________________________________

Table 1: Differences Between Traditional Commerce and Key performance indicators (KPI) are crucial for
E-Commerce in Supply Chain evaluating the efficiency and effectiveness of e-
commerce supply chains. One of the most
important KPIs is order cycle time, which
Aspect Traditional E-Commerce
measures the time from when a customer places
Commerce
an order to its delivery. E-commerce companies
Channel Physical Digital aim to minimize this duration to boost customer
Type (stores, (websites, satisfaction. Another essential KPI is inventory
branches) mobile apps) turnover, reflecting how quickly products are sold
and replenished. A high turnover rate suggests
Geographical Limited to Global access, efficient inventory management. Order accuracy,
Reach physical no geographic the percentage of orders fulfilled correctly is also
presence or boundaries vital, as errors lead to returns, extra costs and
local regions dissatisfied customers. Metrics like on-time
delivery rate and customer satisfaction scores
Inventory Stock held in Can use real- (CSAT) further help firms track performance and
Management stores/wareho time data and adjust their strategies accordingly. These KPIs
uses decentralized enable companies to maintain service quality
fulfillment while optimizing operations.
models Ultimately, effective performance measurement is
important for maintaining a competitive edge in
Customer Personal Online, email, the highly dynamic and customer centric world of
Interaction or platforms digital commerce.
Supply Chain Low real-time High visibility
Visibility visibility

Operating High (rent, Lower

Costs utilities, in infrastructure
store staff) costs, but
higher digital
maintenance
and logistics
Fig. 3 Supply Chain Cost Comparison (Traditional vs E-
Response Slower due to Faster through Commerce)
Time manual automation and This chart compares supply chain costs in
processes digital traditional versus e-commerce models. It
processing highlights how traditional commerce typically
incurs higher costs in inventory, distribution and
Scalability Difficult and Easily scalable customer service, while e-commerce allocates a
expensive to with digital larger proportion of its budget to technology,
scale infrastructure reflecting the digital nature of its operations.

Amazon Supply Chain. (n.d.). Guide to the 5

Most Important Ecommerce Fulfillment KPIs.
 7
Retrieved May 15, 2025, from
https://supplychain.amazon.com/learn/5- VIII. Future Trends and Strategic
ecommerce-fulfillment-kpis-guide Recommendations
____________________________________________________________

VII. Challenges and Risks

The following are some of the most important
____________________________________________________________
trends and strategies in the e-commerce supply
This paper identifies the related issues, risks and chain:
challenges of the e-commerce supply chain
aspects such as the excess inventory, waste of AI Implementation: Applying AI applications in
resources, and late delivery. the supply chain industry results in improving
decision making, demand forecasting and
Excess Inventory: In some periods of the year, inventory level optimization.
business and economic activities become less
than normal (at a low point). Companies face Digital Twins: Basically used in supply chain
challenges with excess inventory backlogs due to processes optimization and risk identification by
many factors such as market demand fluctuation, using a virtual representation of the tangible assets
in addition to inflation that affects the global in the supply chain such as inventories and
supply chain. That leads to a less demand which factories.
leads to excess inventory of goods, resulting in
rising inventory (storage) costs under the supply Circular Supply Chain: used in order of waste
chain management. reduction and resources value maximization. This
can be achieved by reusing or remanufacturing the
Waste of Resources: Since the e-commerce products.
industry developed so fast, e-commerce platforms Shivane, A. A., Ghewari, A., Limbore, N. V.,
face many risks. One of these risks is the waste of Sathe, S. S., & Lopez, J. C. (2023). Emerging
resources due to the damage, loss or expiry of Trends in Supply Chain Management and its
operations in the supply chain operations Impact on Business Operations. Empirical
including goods handling and bad storage. This Economics Letters, 22(Special Issue 4), 131–136.
challenge doesn’t affect the supply chain https://doi.org/10.5281/zenodo.8432190Research
management costs only, but also affects the Gate
customer specifications and experience and even IX. Managerial Insights and
the bad reputation of the company brand name. Strategic Suggestions
____________________________________________________________

Late Delivery: One of the most important factors

Enhancing Supply Chain Flexibility and
related to any e-commerce company is the fast
Responsiveness
delivery time. Because it is directly connected to
customer satisfaction and orders fulfillment. Late The ability of a supply chain to adapt quickly and
delivery results in damage to customer operate flexibility is a crucial factor in
relationships, reduces satisfaction and reduces or determining a company’s success. It makes it
even eliminates customers loyalty. easier to respond to market change, save costs,
Hou, J. (2024). E-commerce Industry Supply satisfy customers, and compete with others. There
Chain: Status, Problems and Countermeasures. are several simple ways companies can improve
Advances in Economics, Management and flexibility and speed which are:
Political Sciences, 71, 131–136.
https://doi.org/10.54254/2754- 1. Adopting Advanced Supply Chain
1169/71/20241455ewadirect.com+1ewadirect.co Management Technologies
m+1
 8
Utilizing advanced digital tools is key to building Effective collaboration and seamless information
an agile supply chain. New technologies like exchange among supply chain partners are
Enterprise Resource Planning (ERP) systems are essential for building a responsive and
used in the supply chain to integrate internal synchronized network. In today’s fast-moving
processes or optimize supply chain operations business world, companies need to work closely
using Supply Chain Management (SCM) with suppliers, delivery services, and other
software. Additionally, integrating Artificial partners. Establishing integrated data-sharing
Intelligence (AI) and machine learning allows for systems can facilitate smooth communication
more accurate demand forecasting and dynamic between businesses, suppliers, and logistics
inventory adjustments. For instance, analyzing providers. Strong partnerships also improve trust,
live-stream sales data with AI can help predict coordination, and performance. However,
product demand during specific time periods, companies must also ensure data security,
enabling companies to prepare stock levels in particularly when handling sensitive information.
advance and prevent both shortages and Accurate and timely information is vital, so
overstocking. businesses should implement mechanisms for
regular data validation and updates. By doing this,
2. Real Time Inventory Management these steps not only strengthen collaboration but
By using smart devices and sensors such as also help companies operate more efficiently and
Internet of Things (IoT) technology, companies maintain a competitive advantage.
can deploy smart sensors in warehouses, on Hou, X., Xu, T., & Xu, Y. (2023). The impact of
production lines, and logistics transportation to live e-commerce on supply chain management:
track inventory and transportation status Challenges, adaptations, and strategic
continuously. This helps optimize stock levels, optimizations. ResearchGate.
minimize excess inventory, and reduce storage https://www.researchgate.net/publication/3861516
costs and risks. For example, during high-demand 60_The_Impact_of_Live_E-
events like live streaming sales promotions, such commerce_on_Supply_Chain_Management_Chall
systems ensure timely replenishment and ensure enges_Adaptations_and_Strategic_Optimizations
that sales are not affected by stock shortages
during the live streaming process and can track X. Conclusion
what’s selling and quickly refill items before they ____________________________________________________________

run out. The demand for e-commerce and customer

demand has increased tremendously, that has
3. Supply Chain Visualization
dramatically shifted the dynamics of management,
A visual management system can offer real-time and has also changed the agility. Supply chains
insights into each stage of the supply chain—from
raw material sourcing to production and final tend to be traditional and linear, on the other hand,
delivery. Visualization management system evolved supply chains have shifted to driven
enables managers to identify disruptions or delays networks that can communicate with other equally
early and respond quickly. For example, live-
remote channels. This evolution resulted from
stream e-commerce companies can track
deliveries in real-time and make sure products several AI technologies, including AI, ML, the
reach warehouses on time and are delivered to IoT and blockchains, and have provided greater
customers without delay, ultimately enhancing
precision in cross Chain “visibility”, forecasting
customer satisfaction and operational reliability.
and streamlined operations.
Enhancing Collaboration and Information
Flow Across the Supply Chain
 9
Enterprise Resource Planning Systems have protection. These challenges need strong
provided remarkable solutions; they now include governance, ethics and regulatory frameworks.
interfacing modules with real-time data exchange.
XI. References
Predictive analytics is now part of the supply ____________________________________________________________
chain management systems which gives
automation in tasks relieving manual intervention
eliminating excess work. This revolution is all
linked to the rise of cloud computing and big data;
it enables error free choice mechanisms as
discerning big amounts of data becomes highly
simplified.

In addition, the evolution of e-commerce has

transformed customer interactions by requiring
faster service and more personalized attention.
Businesses now strive to achieve a delicate
equilibrium of operational efficiency and
adaptability by meeting these expectations with
appropriate last-mile logistics options. As a result,
more sophisticated distribution policies have been
adopted, including decentralized warehousing,
third-party logistics and omni-channel fulfillment
systems.

Other new developments like circular supply

chains and digital twins are also gaining traction.
Circular supply chains focus on environmental
sustainability through reuse, recycling and waste
minimization, while digital twins provide virtual
prototypes of workflows in a supply chain that
enable companies to model, predict, and mitigate
possible disruptions, thus enhancing resilience.

All these propositions come with new caveats.

The e-commerce supply chain is under pressure
from cross-border trade complications, regulatory
and governance gaps on cyber spending, the
ethical trading of labor, and environmental