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IS-supported downstream supply chain management

The key activities of downstream supply chain management are outbound logistics and ful‑

filment. In a B2B context the benefits for downstream customers are, of course, similar to the 

benefits that the organisation receives through automating its upstream supply chain. These 

issues are considered from a marketing perspective in Chapters 8 and 9, but in this chapter 

we review the importance of fulfilment in achieving e‑commerce success.

We also use the grocery retail market to illustrate the implications of e‑commerce 

for management of the downstream supply chain. Tesco is one of the leaders in using 

e‑ commerce for downstream supply chain management. Tesco’s downstream supply chain 

involves selling direct to customers, in other words it is operating a strategy of disintermedia‑

tion (Chapter 2, p. 53) by reducing the role of its branches. Through being an early adopter, 

Tesco.com has developed as the world’s largest online grocery site.