Research On Supply Chain Management Of Home Appliance Retail In E - Commerce Environment

With the advent of the information age, the social economic is being globalized. The market competition is not limited to a region or a country, but all over the world. The success of the competition between retailers in the 21st century does not simply rely on the key competency of company, moreover, a business model with collaborative commerce, collaborative competition and win-win principle. The competition is even more referring to that between the supply chains consisting of consumers, suppliers, manufacturers, distributors, agents and service providers and other partners, and that among the value chains. The units on the supply chain intend to obtain profits from no longer the perspective of their own development and interests, but all the development and the interests of the business or personal on the entire supply chain.With the rapid development and maturity of IT and the popularity of the Internet, the new economy with e-commence put a great influence on the global trade, and a new business era-the era of e-commerce are in front of us, e-commerce is a country’s new economic growth point. In addition, e-commerce has a significant impact on supply chain management. The supply chain management is to integrate purchasing, production, distribution and sales functions into a balance-developed mechanism which could achieve the sales growth, save costs and optimize the utilization of investment while meet the customer’s requirement. By this way, the enterprise’s key competency is strengthened.Since Suning and Gome both have gained 25% market share in the entire appliance retail market, The appliance retailer whose major business is Chain-store operation is taken as the study object. Up to Year 2013, Gome is the second largest home appliance retailer after Suning. After struggling for diversified business transition, Gome is back to home appliance business, and come up with a "all-channel retailer" strategy.This article is based on the comparative study between Gome and Wal-Mart to find deficiencies of Gome and advise domestic appliance retailers. It is significant to the development of the entire appliance retail industry.Gome has achieved a number of merits on supply chain management since it has worked on it for years. The centralized purchasing model and biding model has reduced costs greatly. Wal-Mart’s supply chain management has been very good. Even in today’s rapid development of e-commerce, its e-commerce supply chain has a lot we can learn from, such as powerful information management, effective e-commerce strategy, Win-win cooperation with suppliers, excellent inventory management and strong distribution capabilities. Some deficiencies still exists in Gome e-commerce supply Chan, such as low IT capability, non-strategy e-commence, unstable cooperation with suppliers and poor inventory management and logistic capability. Wal-Mart’s supply chain management system could be taken as a benchmark for China’s appliance retailers to improve their system.