Two Digital Giants and Their Effects on the Digital Supply Chain

T Nguyen

August 10, 2012


The supply chain has stayed fairly traditional in most businesses for a long time as many can easily chart how their supply chain moves about.  However, on the digital front, the concept has constantly been evolving as technology and user interfaces continue to change at a rapid pace.  As we discussed in previous blog posts, these digital players are quite notable players in the supply chain, affecting nearly every aspect of the supply chain from the customer researching information for a product to the purchase and shipment of the item.  Here, we’ll look into two of the biggest of these digital players and the changing course of how they affect supply chains today and in the noticeable future.   

The two big digital players discussed here are Google and Amazon.  Although Google may lack the noticeable marketplace of Amazon, the web giant still garners the most views in search and impressions out of any website - the starting point for many potential digital shoppers.  In 2010, 24% surveyed stated they used Google to research their online purchase while 18% looked on Amazon.  However, interestingly, this statistic has been reversed this year, as Amazon received 31% of views for researching online products, doubling that of Google’s.

Although this statistic may seem unimportant for some, these two digital player already have and will continue to create big impacts on how to think about how customers are seeing products and impacting the efficiency and speed of the supply chains.  Where are customers seeing your product and what about items that compete with them?  On both Google and Amazon, customers have a wide view of products they can find on the same page.  Additionally, what would happen if Amazon continues to expand and create a physical store presence or if Google decides to switch it’s search algorithm to better integrate social elements?  Vendors need to be prepared for big changes that can come at any moment along with a forward-thinking plan that can anticipate where the customer will be and making sure your supply chain is ready for the task.

Source Consulting strives to stay abreast of the latest developments that affect supply chains worldwide.  Along with a wide network and a huge database of research, Source has numerous ways that businesses can both prepare and react to these changes and help reduce shipping costs.  All-in-all, businesses need to be prepared by not only making sure their current supply chain is strong enough for it’s own disruptions but that it’s presence is readily available all around to proactively be prepared for these digital entries.

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