Inbound Value Chain Management of Shoplover Limited

Abstract

The e-commerce industry has expanded in size because of everyone’s easy access to today’s technologically advanced world of internet and online communication. Shoplover Limited has been eager to jump on this opportunity to provide services to actual as well as potential customers in this industry. They expanded dramatically in response to the growing demands from customers. Shoplover Limited was founded in 2021. It still operates its operation on a pilot trial. It will be launched soon. It was founded as a sister concern of US Bangla Group.

I have completed my internship in the procurement department of the aforesaid organization. The procurement service division of Shoplover Limited is the focal point of this report. I will elaborate on the work experiences I have gained from working in this department and I will evaluate the inbound value chain management process handled by this department. This report also means to inform the readers about the nature of the e-commerce industry’s procurement working process.

In evaluating the inbound value chain management process of the Shoplover Limited, Porter’s value chain model was used. By implementing Porter’s value chain analysis, the procurement department of Shoplover keeps vigilant eyes on strategic sourcing, supplier evaluation, negotiation, and contracts with management to maximize the value derived from suppliers with highest quality goods.

Shoplover’s procurement department initiates the process by strategic sourcing of suppliers. This stage primarily involves identifying and selecting the suppliers. The factors considered here include suppliers’ abilities, quality standard, delivery reliability and overall suppliers’ reputation.

At the second stage, they go for supplier evaluation. They evaluate suppliers by some previously set criteria, such as, on-time delivery, product quality, pricing, and responsiveness of suppliers. Such minute evaluation tends to minimize the risks in getting the high-quality goods.

Finally, the process ends in contact management. Contact management plays a crucial role in obtaining maximum value from the suppliers. They focus on negotiating with suppliers for getting favorable prices with high quality products.

Shoplover Limited was found to manage all these inter-related stages of inbound value chain management process quite efficiently to ensure the continuous supply of the needed goods with desired quality.