E-COMMERCE SUPPLY CHAIN PERFORMANCE VS ACCOUNTING

E-commerce is about velocity--order-delivery and inventory to meet customer expectations.  That has created a problem with e-tailers.  SCM performance is often rated by the costs of its logistics components and where inventory is an asset. 

Changing those two mindsets is vital for firms in e-commerce that have a strong desire and strategy to aggressively compete--and not just to sell online.  The old mindset shows in the Last Mile complaints, where again, the end-to-end supply chain is measured on logistics costs.  E-commerce success should be measured in satisfying customer expectations as to order-delivery.

Retailers, manufacturers, and distributors still constraining themselves with the two mindsets create their own barriers to e-commerce success that is driven by supply chain management.