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  • The Development of a Policy of Interaction with Suppliers while Expanding the Geography of Sales of the Online Store

The Development of a Policy of Interaction with Suppliers while Expanding the Geography of Sales of the Online Store

Student: Luneva Olga

Supervisor: Tamara Levina

Faculty: Graduate School of Business

Educational Programme: Logistics and Supply Chain Management (Bachelor)

Year of Graduation: 2020

Today, many e-commerce companies tend to extensive growth. An increase in the geography of sales allows online stores and marketplaces to increase the number of their customers, the frequency of their orders and turnover. This is due to the fact that today there is no leader in the e-commerce market, so companies are trying to increase the geography of sales. However, an increase in the geography of sales also entails an increase in the number of suppliers, which can adversely affect both the efficiency of the departments that interact with suppliers and the efficiency of the entire business of the company. This article discusses the issues of developing a policy of interaction with suppliers while expanding the geography of sales of an online store. The paper analyzes the impact of corporate strategies on interaction with suppliers, as well as current practices of implementing the SRM concept and establishing a process of interaction with suppliers. The article proposes an algorithm for developing a policy of interaction with suppliers, as well as recommendations on the implementation of this algorithm on the example of perishable goods suppliers for an online project for the delivery of fresh food. The article demonstrates the need for cross-functional interaction between functional business units, whose work involves interaction with suppliers, focusing on the needs of the business and its effectiveness when working with suppliers, as well as the need for regular monitoring of performance indicators of suppliers and some functional business units, which allows for a cyclical process interaction with suppliers for its continuous improvement. The article consists of three chapters, contains drawings, tables, a bibliography and applications.

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