Digital Supply Chain Improves the Performance of e-Commerce

Enterprises

Lan Hu

Logistic Management, Zhejiang Wanli University, Ningbo, Zhejiang, 31510, China

Keywords: Digitization of Supply Chain, e-Commerce Industry, Performance.

Abstract: The need for technology is rising in all industries in the context of the times, and so is the e-commerce industry,

and the action that needs to be taken in order to improve the performance of e-commerce companies is the

development of a digital supply chain. In the development of an emerging technology is bound to encounter

a number of difficulties, mainly for the current e-commerce industry digital supply chain to identify problems

and solve them.In this paper the authors have proposed solutions and suggestions to the current difficulties in

the development of digital supply chain through research, such as conducting research on logistics robots,

which play a great role in improving the performance of e-commerce companies. In addition the authors have

tried to propose the future direction of development through the progress of the current stage of development,

such as the sustainable development of the digital supply chain.

1 INTRODUCTION

The advancement of technology and increased

reliance on electronic products, has driven a surge in

demand for e-commerce and the growth of e-

commerce platforms. The current business

environment is characterized by rapid change,

complexity, intense competition and uncertainty in

the supply chain. This landscape is driven by

unpredictable customer demand and is influenced by

a variety of factors, including economic fluctuations,

technological innovations, social changes, and

geopolitical dynamics. As a result, supply chain

management faces many challenges.

The aim of this paper is to explore the current

barriers to the development of digital supply chains.

In the study, timeliness is an important criterion for

companies to consider. However, achieving digital

transformation requires a lot of time, effort and

money. Another obstacle is the rapid updating of the

e-commerce industry, which is constantly changing

as technology evolves. Therefore, in order to keep up

with this pace, it is crucial to conduct relevant

research on digital supply chain, which is an

important strategy to enhance the competitiveness of

the e-commerce industry. However, the costs

https://orcid.org/0009-0002-3689-2410

invested in research and development do not always

bring the expected returns. During the research

process of the digital supply chain, there are various

risks and obstacles that may lead to fruitless research

and development in the end. Therefore, when a

company decides to conduct digital supply chain

research, it is important to carefully assess the risks

and formulate appropriate strategies to deal with them.

At the same time, it is also necessary to focus on the

combination of technological innovation and market

demand in the research process to ensure that the

R&D investment can achieve a good return and bring

sustainable development for the company.

This paper provides effective suggestions for the

obstacles facing the development of digitalized

supply chains, including measures such as the

development of logistics robots. Logistics robots are

of great significance in enhancing the digitization of

the supply chain. Firstly, they can significantly

improve the efficiency of the supply chain and realize

the rapid processing and distribution of goods through

automation and intelligent technology. Second,

logistics robots can improve accuracy and reduce the

incidence of human error, thereby enhancing the

quality and accuracy of supply chain operations. In

addition, logistics robots can improve the safety of

operations, avoiding collisions or other safety hazards

580

Hu, L.

Digital Supply Chain Improves the Performance of e-Commerce Enterprises.

DOI: 10.5220/0012959600004508

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 1st International Conference on Engineering Management, Information Technology and Intelligence (EMITI 2024), pages 580-584

ISBN: 978-989-758-713-9

through accurate sensors and navigation technology.

At the same time, they can effectively respond to

emergencies, improve the emergency response

capability of the supply chain, and ensure the stable

operation of the supply chain. In addition, logistics

robots can better meet the growing demand of

consumers and realize faster and more flexible

services.

In addition, this paper also emphasizes the

importance of sustainable development. For a long

time, the continuous improvement and development

of digital supply chain has been the focus of

enterprises. Especially after the impact of the global

epidemic in recent years, the importance of the digital

supply chain has been emphasized. In order to prevent

similar tragedies from happening again, enterprises

need to further improve the digital supply chain,

enhance its ability to cope with emergencies, and

ensure the stable operation and sustainable

development of the supply chain.

Overall, the development of digital supply chain

not only serves the enterprise itself, but also aims to

improve the performance level of the entire e-

commerce industry. By reducing costs, improving

efficiency and quality, the digital supply chain can

help enterprises better adapt to market changes and

conform to the development trend of the times, so as

to maintain a competitive advantage in the fierce

competition and achieve sustainable economic

growth.

2 LITERATURE REVIEW

As science and technology continue to advance,

society's dependence on electronic products has

grown significantly. Consequently, the demand for e-

commerce services has surged, prompting continuous

evolution in e-commerce platforms. In the current

business environment, supply chains are traversing a

dynamic landscape characterized by rapid change,

heightened complexity, fierce competition, and

uncertainty. This landscape is primarily shaped by the

ever-shifting and unpredictable nature of customer

demand, influenced by various factors including

economic fluctuations, technological innovations,

societal shifts, and geopolitical dynamics. As a result,

supply chain management faces unprecedented

challenges in adapting to these multifaceted and often

volatile market conditions. In this process, in the e-

commerce platform performance improvement is

crucial. Implementation of digital procurement

processes positively and directly influences supply

chain performance. The current study focused on

digital procurement capabilities that reflect both the

organizational maturity in adopting e-procurement

technology and the institutionalization of the e-

procurement processes, and results confirm their

direct relationship with supply chain performance

(Jukka,2021). However, any of these would require a

significant investment of time by the e-commerce

platform to develop them. To ensure that the research

did not lag behind the rapidly advancing times, it

became imperative to adopt a more efficient approach.

3 EXPLORING RESEARCH

FINDINGS

3.1 Technological Innovation Takes

Time

Abbas suggest that provision of free time to

employees is a cheap and an easy measure to adopt

for the less resourceful formal firms of South Asia

and is complementary to R&D intensity in boosting

innovation in the more resourceful firms(Abbas,

2022). Presently, digital transformation across an

entire supply chain commonly faces issues of

underdevelopment and structural imbalances. The

fundamental reason for this is the relatively weak

linkage effects and collaborative capabilities of the

upstream and downstream enterprises(Wei,2024).

Developing and implementing new technologies is a

complex and lengthy process, far from being a quick

fix. It requires time-consuming in-depth research,

continuous development, sophisticated testing and

continuous improvement. Only after going through

this rigorous series of steps can a new technology be

successfully introduced into the market or society.

This concept deeply recognizes that innovation is a

continuous iterative process that constantly faces

challenges and obstacles. From the conceptualization

of a technology to its final application, new

difficulties may be encountered at each stage,

requiring iterative review and adjustment. In this

process, innovators need to be resilient and creative

in order to overcome the various difficulties that may

arise. These problems may include feasibility

verification of technology, accurate grasp of market

demand, effective allocation of resources, and so on.

Only with sufficient awareness and effort can people

ensure the smooth implementation of innovations and

bring about real change and progress to society.

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3.2 The e-Commerce Industry Is

Changing too Fast

The development of the internet retail business has

increased industry competition. Because the customer

churn rate in the e-commerce industry is so high,

business owners must examine ways to reduce

customer churn in online purchasing. Because the

customer's behaviour is predictable, it is possible to

predict the customer's future trading inclinations

using the relevant data acquired and the necessary

analysis (Berger,2019)The advent of the digital age,

so that a new generation of information technology is

constantly upgraded and updated, and the internal

control system of enterprises in order to adapt to the

changing business needs and the external

technological environment, it is also necessary to

carry out timely updating. Currently, many

enterprises' internal control systems are not updated

in a timely manner, which may increase the threat of

network security of the enterprise and create

compatibility problems, reduce the efficiency of

information transfer between various departments of

the enterprise, and fail to effectively supervise the

activities of the enterprise(Xu, 2024).With the rapid

development of the Internet and mobile technology,

people are able to access the Internet and shop online

more easily. Advances in technologies such as cloud

computing, big data analytics and artificial

intelligence have also provided e-commerce with

more efficient and personalized services. More and

more consumers tend to shop online because e-

commerce platforms offer more choices, a more

convenient shopping experience, and more

competitive prices. Especially during the epidemic,

people's reliance on online shopping further

increased. E-commerce platforms have shortened the

time from production to consumers and improved the

efficiency of order processing by optimizing supply

chain management and logistics and distribution

systems. Many countries and regions have introduced

policies and regulations to support the development

of e-commerce, promoting prosperity and innovation

in the e-commerce industry.

However, rapid developments in the fields of

Internet technology, mobile technology, and artificial

intelligence continue to change the landscape and

rules of the e-commerce industry. In order to maintain

a competitive advantage, e-commerce companies

need to keep abreast of and apply the latest

technology trends and tools. Consumers' preferences,

shopping habits and behaviors are constantly

changing, putting forward new requirements for

product quality, service quality and shopping

experience. E-commerce companies need to

constantly adjust and optimize their products and

services to meet consumer demand. Competition in

the e-commerce market is fierce, new competitors

continue to emerge, and traditional enterprises are

also actively entering the field of e-commerce. In

order to be invincible in the fierce competition, e-

commerce enterprises need to constantly innovate

and improve in order to maintain market leadership.

3.3 The Investment is not Always

Oroportional to the Return

As with any transformation, there are some risks that

professionals should know as more and more supply

chains become increasingly digitized. (Staff,2024).

The supply chain information system has weak

forecasting and early warning capabilities in demand,

procurement, supply and operation analysis(Ye,

2023). Investment return can be defined as a metric

used to evaluate the profitability of an investment.

This metric serves as a tool to assess the effectiveness

of various investments at a given point in time. The

amount of money or resources invested in a particular

endeavor does not necessarily correspond directly to

the level of return or profit obtained. In other words,

there is not always a linear relationship between the

investment made and the outcomes achieved. Factors

such as market conditions, competition, timing, and

unforeseen circumstances can all influence the return

on investment (ROI). Therefore, even a significant

investment may not guarantee a commensurate level

of return, and there is inherent risk involved in any

investment decision.

4 SUGGESTIONS FOR FUTURE

RESEARCH DIRECTIONS AND

PRACTICES

4.1 Utilization of Logistics Robots

Collaborative Robots in internal logistics systems

will continue to be a topic of interest and will pave

the way for more efficient and cost-effective logistics

operations(Sharama,2023).There is an option to

create logistics robots to assist in the work. The

reasons are as follows:

Increased efficiency: Logistics robots can

automatically perform a variety of logistics tasks,

such as cargo handling, sorting, loading, etc., faster

and more accurately than manual operations, thereby

increasing the efficiency of logistics operations.

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Logistics robots can improve efficiency.

Optimized logistics processes can effectively reduce

labor costs and the incidence of human error, while

improving operational efficiency and thus reducing

the overall total cost of logistics operations. By

introducing automation and intelligent technologies,

companies can achieve more efficient cargo handling

and distribution and reduce potential errors caused by

human intervention. This fully optimized logistics

system not only improves operational efficiency and

accuracy, but also reduces operational costs, creating

a more stable and sustainable foundation for the

company.

Logistics robots can improve work accuracy.

Utilizing logistics robots equipped with sensors and

advanced navigation technology, precise task

execution can be achieved, effectively avoiding

human error and significantly improving the accuracy

and efficiency of order processing. This automated

system ensures that goods maintain a high level of

accuracy throughout the entire handling process,

thereby reducing errors and delays that may be caused

by human operations. The intelligent operation of

logistics robots not only enhances operational

reliability, but also dramatically improves the

efficiency of the business, providing customers with

more reliable and timely service.

Logistics robots can enhance work safety.

Logistics robots have advanced environmental

awareness and obstacle avoidance capabilities when

performing tasks, and can accurately recognize the

surrounding environment to avoid collisions or other

potential safety hazards in a timely manner,

significantly improving the level of safety in logistics

operations. This highly automated mode of operation

can not only protect logistics equipment and goods

from damage, but also effectively reduce the

incidence of accidents in the workplace, to protect the

safety of employees and equipment. Intelligent

characteristics of logistics robots for the logistics

industry to bring a more reliable and safe operating

environment, for enterprises to create a more stable

and sustainable development basis.

Logistics robots can respond to peak requirements

in a timely manner. In the logistics industry,

especially during peak hours such as promotions or

holidays, demand for orders will increase rapidly,

challenging the logistics capabilities of enterprises.

Utilizing logistics robotics, companies can effectively

cater to the surge in demand during peak hours and

improve order processing capabilities and efficiency.

This efficient logistics solution not only meets

customer demand for fast delivery, but also reduces

error rates, improves the customer experience, and

enhances an organization's competitiveness in a

highly competitive marketplace.

Logistics robots can effectively improve customer

experience. By introducing advanced logistics

robotics, companies can dramatically increase order

processing speed and delivery efficiency, thereby

shortening overall lead times. This efficient logistics

system not only meets customer demand for fast

delivery, but also improves the accuracy and

reliability of order processing, thus enhancing

customer satisfaction and shopping experience. As

customers' demands for service quality and delivery

speed continue to rise, utilizing the technological

advantages of logistics robots not only improves

customer satisfaction, but also increases customer

loyalty and promotes long-term business

development.

4.2 Focus on Sustainability

The study highlights the essential role of the

Sustainable Management Control System (SMCS) in

integrating sustainability principles into

organizational management. SMCS enhances

sustainability measurement, compliance, risk

management, collaboration, and continuous

improvement within the supply chain. Eco-

innovation complements SMCS, positively impacting

environmental, social, and economic sustainability.

Supply Chain Management (SCM) optimizes

operational efficiency, reducing costs, and enhancing

customer satisfaction, while digital adaptability

empowers organizations with technology for

sustainable outcomes(Dharmayanti, 2023). The

development of the digital supply chain faces a

number of challenges, with the outbreak of the

COVID-19 pandemic at the end of 2019 being a

particularly significant obstacle. This global health

crisis has dealt a major blow to markets across the

globe, disrupting supply chains and causing

significant economic losses.

The pandemic has highlighted the fragility of

current supply chain systems, which are often

complex and reliant on a global network of suppliers,

distributors, and customers. As the virus spreads,

businesses have been forced to close their doors,

borders have been closed, and travel restrictions have

been implemented, all of which have had a negative

impact on the flow of goods and services.

Supply chain intelligence is crucial to the

operational efficiency of retail enterprises. Therefore,

retailers should set clear supply chain intelligence

goals, allocate sufficient resources, and establish a

sustainable supply chain intelligence plan. The initial

Digital Supply Chain Improves the Performance of e-Commerce Enterprises

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investment in a supply chain intelligence system may

pose challenges, but it will yield significant benefits

in the long run（Ma，2024）.To mitigate the effects

of the pandemic and ensure the resilience of the

supply chain, companies have had to adapt their

business models and operations. This has involved a

shift towards digitalization, as businesses have moved

online to conduct their transactions and manage their

supply chains remotely. Digital tools and

technologies have played a crucial role in enabling

this transition, with platforms such as e-commerce

websites, supply chain management software, and

logistics tracking systems being essential for

maintaining the flow of goods and information. The

future development will be even more challenging,

and it is the long-term plan to be able to sustain the

supply chain.

5 CONCLUSIONS

According to the analysis of the research results, the

digital supply chain in the e-commerce industry

suffers from the problems of low timeliness, fast

industrial update and payoffs that do not necessarily

pay off. These problems are particularly prominent in

today's competitive e-commerce market, affecting

operational efficiency and profitability. However,

this study proposes recommendations for developing

logistics robots and promoting sustainable

development, which provide useful ideas for solving

current supply chain problems

However, it should be noted that the current

research still has certain shortcomings, such as not

exploring the root causes of digital supply chain

problems in depth and not fully considering the

impact of external environmental factors on the

supply chain. Therefore, future research should pay

more attention to digging deeper into the root causes

of the problems and analyze them from multiple

perspectives, such as the industrial chain and market

demand, in order to develop more effective solutions.

At the same time, the efficiency and environmental

friendliness of the supply chain should be

continuously improved by combining intelligent

technology and the concept of sustainable

development.

Looking forward to the future direction of

research, it is recommended to focus on the following

aspects: firstly, Enhance monitoring and optimization

of key aspects of the digital supply chain. Utilize big

data, artificial intelligence and other technologies to

improve the timeliness of the supply chain; secondly,

the e-commerce industry needs to be sustainable. In

order to achieve sustainable development of the

supply chain, green logistics and circular economy

concepts need to be promoted; and Lastly, the e-

commerce industry needs to strengthen cross-border

cooperation with related sectors. Changes in business

models should be made along with continuous

innovation. By doing the above, the e-commerce

industry can think of a healthier and more sustainable

direction.

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