Fragility and Elastic Structure Optimization of Cross border E-commerce Supply Chainpath

Cross border E-commerce Supply Chain path

Supply chain management is closely related to enterprise development. At present, the fragility of supply chain has seriously affected the daily operation of enterprises. Externally, it is manifested as the variability of supply chain environment. And internally, it is manifested as the complexity of supply chain. Cross border E-commerce Supply Chainpath.

The direct impact of supply chain vulnerability is the disruption of supply chain. And the high risk of supply chain reduces the performance and operating results of enterprises. Therefore, it is of great practical significance to strengthen the research on supply chain vulnerability. China’s cross-border e-commerce is facing a difficult development situation due to its short emergence. And immature theoretical system. This paper analyzes the vulnerability. And elastic structure optimization path of cross-border e-commerce supply chain. Analyzes the vulnerability and influencing factors of supply chain deeply. And explains the problem of cross-border e-commerce in the aspect of supply chain vulnerability with the actual case. Finally puts forward related optimization measures. In order to create a better supply chain environment for the development of cross-border e-commerce in our country.

Cross border E-commerce Supply Chain path

Vulnerability and influencing factors of supply chain

(a) Vulnerability of supply chain

Supply chain refers to a complete network system. Which can provide consumers with a variety of services. Meet their different needs. Connect different parts, and form the integration and scale of services. In supply chain management. An important principle is to achieve close cooperation between upstream suppliers. and downstream customers. Only in this way can we ensure that the supply chain creates more economic benefits for enterprises.

Many consumers lack understanding and knowledge of the supply chain. And its cognitive level is very shallow. Even for some people who are closely related to business activities. It is impossible to have a comprehensive understanding of the supply chain. Because the supply chain is a very large and complex structural system. It is normal for ordinary people to lack in-depth understanding of it. However, people’s lack of in-depth understanding of the supply chain will also increase. The risks faced by the supply chain in daily operations. Making the supply chain more fragile and complex. And in the future, the supply chain will still face huge resistance in the development process.

Cross border E-commerce Supply Chain path

The risks faced by the supply chain mainly come from two aspects: one is the internal risk of the supply chain.

And the other is the external risk of the supply chain. The more complex the supply chain is, the higher the risk will be in the operation process. And there is a positive correlation between the two. It involves multiple levels of the supply chain. And each small link will threaten the entire supply chain structure. Because it involves the operating results and operating benefits of multiple enterprises. The internal risks of supply chain are mainly due to the fact. That multiple factors are involved in the supply chain system. The results of the entire supply chain will be affected by how to strengthen the connection between various factors. 

And how to arrange and combine them. Such risks are closely related to the arrangement and combination of the supply chain. But because of its low transparency, the risk monitoring ability is also low. In the process of work. There will be a lot of mistakes and face a lot of uncontrollable factors. External risks of supply chain are mainly related to external political. And economic environment, natural environment and other factors. Strike activities, terrorist attacks and natural disasters will affect the normal operation. And development of the entire supply chain. As external factors are mostly uncontrollable, they become fixed factors of supply chain vulnerability.

The supply chain is faced with both internal and external risk control, which will greatly reduce its reliability.

These two types of risks are very complex and come from a wide range of sources. So the supply chain will face double risks and losses. The degree of impact on the supply chain is closely related to the supply chain structure. For example, there are various cooperative relationships between enterprises. Which also determines the diversity and complexity of the supply chain structure. So when the supply chain is at risk, the degree of disruption is linked to the specific supply chain structure. To strengthen the management of supply chain risk. It is necessary to accurately identify and control the risk, and reduce the risk by predicting in advance. So reduce the supply chain wind.

Supply chain members cooperate with each other to jointly resist risks, only in this way can risk, internal. And external identification and monitoring must be carried out at the same time. Enough to disperse the risk and reduce the loss of supply chain members. The vulnerability of supply chain is not only affected by internal risk and external risk. But also related to the complexity of supply chain structure, which presents a positive correlation.


Cross border E-commerce Supply Chain path
Cross border E-commerce Supply Chain path

(b) The impact of focusing on efficiency rather than effectiveness on supply chain vulnerability

After the reform and opening up, the market economy system was established. And the business model was updated. And the improvement of the efficiency level of the supply chain also promoted the continuous improvement. And development of China’s business model. Many enterprises paid more attention to the relationship between inventory and cost in the development process. And reduced operating costs by destocking. Moreover, enterprises became more and more dependent on suppliers. Although this business model can enable enterprises to occupy a place in the fierce. And volatile market environment, the drastic changes in market demand will reduce the flexibility of this business model. Which is not conducive to the risk control of enterprises. In the modern business environment, if an enterprise wants to develop. It must pay attention to the efficiency of the supply chain. Shift from the traditional flat operation to the diversified development strategy. And enhance the ability to cope with risks and the ability to cope with the market environment.

(c) The impact of supply chain globalization on its vulnerability

With the rapid development of economic globalization, traditional marketing strategies. And sales models have been unable to cope with the drastic changes in the market economy environment. In the modern business environment, the phenomenon of remote procurement. Global production and assembly is becoming more and more common. And the supply chain has extended to all areas of the world. Not only limited to traditional domestic production or local production. 

For example, in the production of an electronic product. The core production factors are produced in the United States, the parts are purchased in Taiwan. The assembly process is carried out in Singapore. And the final sale is carried out in the international market. The phenomenon of global supply chain has been very common. The main reason for this phenomenon is the cost factor. Which is not the overall cost of the supply chain, but only for the procurement cost and production cost. Which will eventually lead to excessive inventory, enhance the sales risk. And not conducive to the long-term operation and development of enterprises. In addition, cross-border mergers and acquisitions are becoming more frequent. Which also promotes the phenomenon of supply chain globalization.

Cross border E-commerce Supply Chain path

(d) The impact of centralized production and distribution on supply chain vulnerability

The EU has adopted the principle of the single market to deal with cross-border trade. Increasing the centralization of the production and distribution of goods by lowering barriers to the movement of goods. Although the centralized production mode can reduce the production cost and achieve good scale benefits. There are still great risks. In some cases, in order to achieve large-scale production. Enterprises adopt the principle of multi-volume production in a single location to produce products. Although the production cost of raw materials, labor costs and land costs of products are reduced. The transportation cost is greatly increased, and the business risk is greatly increased for cross-border trade. Centralized production and centralized distribution are closely linked. And manufacturers hope to achieve market share through several distribution centers. Which is contrary to the current situation of the market and ultimately aggravates the vulnerability of the supply chain.

(e) The impact of outsourcing development on the vulnerability of supply chain

In order to obtain more profits and reduce the risk in all aspects. Many enterprises will adopt the form of outsourcing to enhance their competitiveness. This phenomenon has been very widespread and common. As the supply chain involves multiple links. Enterprises will take the form of outsourcing to strengthen their grasp of the supply chain. For example, some enterprises will outsource the distribution link. Production link and logistics link to other companies. And other companies will strengthen this part of the supply chain by virtue of their own differentiation advantages. So as to help enterprises achieve more economic benefits and enhance their overall competitive advantage.

This way of outsourcing gives rise to the emergence of networked organizations.

Which means that more and more companies are connected in series. Through the sharing of information. And resources to form a differentiated advantage in the supply chain to enhance the overall competitiveness. In the daily operation process of enterprises, outsourcing brings more economic benefits to enterprises. For example, a large chain company outsources its distribution system to a professional company. Which reduces the risks faced by the company in the distribution link. But as far as the entire supply chain is concerned, the risks only increase. Since the supply chain involves multiple links. If enterprises form their own competitive advantages through large-scale outsourcing. The entire supply chain will become complicated, and the risk of failure in each link will increase. Making the enterprise risk more comprehensive and complicated. Reducing the profits due to enterprises and increasing losses. Which is also one of the causes of the fragility of the cross-border e-commerce supply chain.

Cross border E-commerce Supply Chain path
Cross border E-commerce Supply Chain path

(f)The impact of supply volume reduction on supply chain vulnerability

In today’s economy, the number of suppliers has shrunk dramatically. And companies rely on these suppliers for the raw materials they use to make their products. Although reducing the number of suppliers can enhance market competitiveness. And create a healthier market environment, for enterprise producers. Their purchase channels are also reduced and they face greater risks. A large part of the reduction of suppliers is completed through mergers and acquisitions. And the phenomenon of mergers and acquisitions has become more common. Although the overall strength of suppliers can be enhanced, the supply chain faces a development crisis. Which is not conducive to the procurement of raw materials by enterprises.

Maxtop Tech is a China sourcing company and supply chain assistance management company. Our service for buying office is help our customers to import goods from China more smoothly, more simple. more time-saving.


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