THE IMPLEMENTATION OF M–
COMMERCE IN SUPPLY CHAIN
MANAGEMENT SYSTEM
Yousef A. Baker El–Ebiary
Assoc. Prof.Dr., Faculty of Informatics and Computing, UniSZA (Malaysia)
E–mail: yousefelebiary@unisza.edu.my
Najeeb Abas Al–Sammarraie
Assoc. Prof..Dr., Faculty of Computer and Information Technology, MEDIU
(Malaysia)
E–mail: dr.najeeb@mediu.edu.my
Syarilla Iryani A. Saany
Assoc. Prof.Dr. Faculty of Informatics and Computing, UniSZA (Malaysia)
E–mail: syarilla@unisza.edu.my
Recepción: 05/03/2019 Aceptación: 05/04/2019 Publicación: 17/05/2019
Citación sugerida:
Baker El-Ebiary, Y. A., Al-Sammarraie, N. A. y Saany, S. I. (2019). The Implementation
of M–Commerce in Supply Chain Management System. 3C Tecnología. Glosas de
innovación aplicadas a la pyme. Edición Especial, Mayo 2019, pp. 222–239. doi: http://dx.doi.
org/10.17993/3ctecno.2019.specialissue2.222–239
Suggested citation:
Baker El-Ebiary, Y. A., Al-Sammarraie, N. A. & Saany, S. I. (2019). The Implementation
of M–Commerce in Supply Chain Management System. 3C Tecnología. Glosas de
innovación aplicadas a la pyme. Special Issue, May 2019, pp. 222–239. doi: http://dx.doi.
org/10.17993/3ctecno.2019.specialissue2.222–239
3C Tecnología. Glosas de innovación aplicadas a la pyme. ISSN: 2254–4143
224
ABSTRACT
The progression of wireless technologies will dramatically and fundamentally
transform the supply chain management, through the imminent mobile revolution.
Many aspects of organizational life will be impacted by the revolution. Firstly,
the crucial data will be presented in real time to help the decision makers while
the ways businesses communicate, and the relationships with consumers and
suppliers will dramatically change, all of which, will transform how the supply
chain is managed. Issues related to the integration of Mobile Commerce (M–
Commerce) and Supply Chain Management (SCM) including the dearth of killer
applications, mobile device limits, networking issues, infrastructure restrictions,
security matters, and user distrust in mobile applications, are examined in this
paper. There are also highlights on issues including usability, user interfaces,
mobile access to databases, agent technologies, and models of mobile business.
KEYWORDS
Supply Chain Management (SCM), Information Systems (IS), E–Commerce,
M–Commerce, Mobile Commerce, Wireless Technology.
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1. INTRODUCTION
Progresses in wireless technology and mobile devices have resulted in a novel
type of e–commerce known as mobile commerce, whose transactions are
carried out with mobile devices through wireless telecommunication networks
and other wired technologies associated with e–commerce. Mobile commerce
or m–commerce oers users with ubiquity, personalization, localization, and
convenience, and its application has expanded the Internet sales channels into
mobile environments that are more direct and personalized. In the domain of
business, the use of m–commerce, therefore, oers incredible opportunities for
the provision of value–added services to not only consumers but corporate users
as well (Goolsbee & Klenow, 2018).
The present paper looks into the mobile commerce application within supply
chain management. For a company, its supply chain generally entails all stages
that are directly or indirectly involved in meeting the demands of the customers
(El–Ebiary & Hilles, 2017). This chain of supply includes many parties including
suppliers, manufacturers, transporters, warehouses, retailers, as well as customers.
Inside a given organization, the supply chain for certain product or service
involves each activity carried out by each precursor within the value chain for
designing, generating, promoting, marketing, delivering, and supporting every
individual constituent of that product or service. Hence, the aim of Supply Chain
Management (SCM) is to connect the market–place, the network of distribution,
the process of manufacturing and the activity of procurement, in a manner,
that customers receive higher levels of services at a lower cost in total (Ciccullo,
Caridi, Gosling & Purvis, 2018).
Mobile Commence allows users access to the Internet irrespective of time and
location. As such, its ability in detecting the location of an individual mobile
terminal user in addition to its functionality in information access when necessitated
can potentially decrease the administrative overhead while increasing eciency
(Hassan, Manna, El–Ebiary & Al–Sammarraie, 2018). Not only that, the use
of m–commerce allows the information to be dispersed more quickly through
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the organization. With mobile commerce information exchange and purchases
are possible and for a lot of parties linked to the supply chain, this is of use. For
instance, in the context of customers, mobile commerce denotes convenience,
while in the context of sales professionals, mobile commerce allows immediate
sales, whereas, for managers who are on the move, mobile commerce enables
communication and exchange of information. Mobile commerce, therefore,
proves its ability in improving customer service, improving responsiveness,
generating fresh channels of distribution, easing management of inventory, while
also substantially improving the supply chain particularly in terms of performance
(Hugos, 2018).
In essence, the organization of this paper follows the following structure: the
ensuing section looks into the challenges in supply chain management, followed
by a section that examines mobile commerce (Ciccullo, et al., 2018). Then
highlights the mobile application challenges in supply chain management, while
next elaborates the arising research issues in the integration of mobile commerce
into supply chain management.
2. CHALLENGES FOR SCM
As can be referred to in Figure 1, the supply chain in a company usually includes
countless departments and people, with information as the main determinant of
supply chain management success. Along this chain, the products/services and
funds ow to create information about massive quantities. At the same time, the
information provides a direct linkage between customers and suppliers, and this
allows real–time responses from the suppliers’ side towards the market changes
(Behzadi, O’Sullivan, Olsen & Zhang, 2018). As such, the supply and demand
for tailored goods can be appropriately matched at very brief time frames. In
supply chain management, the function of information systems is to assure the
accurateness and accessibility of the right information in a timely manner.
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The intense expansion of the Internet has also resulted in thriving e–commerce
that has transformed how people execute their business, and such trend has
equally presented fresh demands to the systems of the supply chain with features
as detailed below:
• Information Sharing: The swift e–commerce expansion has resulted in the
demand that corporations furnish more information to more internal users,
and to certain outside vendors and customers as well. However, the traditional
supply chain systems including ERP are mainly concerned with the internal
operations including nance, human resources, and manufacturing which
are accessible only to select users (El–Ebiary, Al–Sammarraie, Al Moaiad &
Alzubi, 2016).
• Optimization Focus: Supply chains are expanded with e–commerce has
extended, and within the extended value chain, more optimization is needed
bye–commerce. Relevantly, the conventional systems of the supply chain are
aimed at optimizing the business processes within the company. Still, when
considered from the viewpoint of the total value chain, the aforementioned
processes may not be optimized (El–Ebiary, Najam & Abu–Ulbeh, 2018).
• Internet Substitute. The emergence of the Internet has destroyed the long–
established notion that there exists a single system with the capacity to meet
all needs of an organization. In fact, the functionalities of enterprise systems
including payroll processing or transportation management could bit by bit be
taken over by individual company of the Internet which oers a distinctive set
of features linkable via a single inter–connected network (Alzubi, Alkhawlani
& El–Ebiary, 2017).
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Figure 1. The Extension of Supply Chain and Supply Chain Flow.
Technology Obstacle. The incompatibility of hardware and software has caused an
inability to a lot of the presently available supply chain systems in supporting
interactive e–commerce. Considering that the aim of these systems is to connect
the application systems within the bounds of the enterprise, the established
infrastructures support specic EDI protocols only (El–Ebiary, Abu–Ulbeh,
Alaesa & Hilles, 2018). For this reason, the aforesaid enterprise applications
cannot become the basis for an e–commerce infrastructure, considering that
open standards are required by e–commerce infrastructure.
3. MOBILE COMMERCE
Wireless and mobile networking is an entirely novel method that can be employed
by companies in further expanding their supply–chain mobile commerce. The
functions of e–commerce are expanded through mobile commerce, resulting in
the expansion of the e–supply chain system to the dimensions that were never
aspired before. Mobile applications allow the user to access the supply chain
system at all times and from all locations via the use of many dierent devices
(e.g., cellular phones, PDAs, PCs, and TVs) (Hassan, Manna, & El–Ebiary,
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2017). Accordingly, the concept of mobile commerce, its distinguishing features,
important empowering technologies, and prospective applications are elaborated
in this section to address the challenges facing supply chain management.
3.1. DISTINCTIVE FEATURES
Mobile commerce is essentially associated with reaching to the customers, suppliers,
and employees, notwithstanding their location, and in fact, mobile commerce relates
to the dispersal of the correct information to the correct time and location. This
ability implies the exibility of mobile commerce, and such exibility is driven by
the incorporation of the Internet, enterprise applications, and wireless technology.
The distinctive features of mobile commerce are as described below:
• Ubiquity: Mobile devices enable business organizations to get to their customers
anywhere at any time, while users are able to obtain any information that
they seek, no matter where they are, with the use of Internet–enabled mobile
devices. Mobile commerce, therefore, allows the provision of the needed
service or application at all times and places.
• Personalization: The Internet is currently oering a massive amount of
information, services, and applications, and the applicability of information
received by users is of great signicance. Also, considering that mobile devices
owners frequently need diverse groups of applications and services, mobile
commerce applications can be tailored to cater to the need of the specic user
in terms of their desired information or services.
• Flexibility: Considering the portability of mobile devices, mobile users may
perform transactions or receive information via their Internet–enabled
mobile devices while engaging in other activities such as travelling.
• Dissemination: In a certain geographical area, there are wireless infrastructures
that support instantaneous data delivery to all mobile users, oering an
ecient way to deliver information to a vast population of consumers.
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3.2. KEY M–COMMERCE ENABLING TECHNOLOGY
Mobile commerce needs the development and deployment of the required
facilitating technologies in order that it could expand substantially. Examples
of these technologies include service technologies, network technologies, mobile
personalization technologies, mobile commerce terminals, mobile middleware,
mobile location technologies, as well as content delivery and format. Some of the
leading technologies responsible for the materialization of mobile commerce are
as follows:
• Global System for Mobile Communication orGSM: This technology is the dominant
mobile standard in Europe and also in most part of the Asia–Pacic region,
and this technology operates using the 900 MHz and the 1,800 MHz (1,900
MHz in the USA) frequency band. GSM also has been the foundation for
other technologies of the network, and these include HSCSD (High–Speed
Circuit Switched Data) and GPRS (General Packet Radio Service). As GSM
standard is widely adopted nowadays, the establishment of innovative mobile
applications and services is economically practicable.
• Short Message Service or SMS: This technology allows the conveyance and
reception of text messages to and from mobile phones. An SMS can contain
160 alphanumeric characters’maximum, in each exchange. The use of SMS
is very common in Europe and the two major forms of SMS message are
simple person–to–person messaging and voice mail notice. Additionally, SMS
can contain mobile information services including news, weather updates,
sports, stock quotes and so forth.SMS chat and ringing tones downloads are
also available.
• Wireless Application Protocol or WAP: This technology encompasses an open and
global standard for mobile solutions, involving the delivery of web information
to mobile terminals. WAP entails an end–to–end application protocol and
it presents resolutions to the issues that arise in the development of mobile
applications. These include the connection of mobile terminals to the Internet
and the transformation of mobile terminals into communication devices, with
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the capacity of communicating with other devices with the utilization of a
wireless network. The design of interactive and real–time mobile services can
be employed as well.
• Bluetooth: This technology encompasses a low power radio technology for the
purpose of communicating and exchange of data. It is a low–cost short–range
wireless standard utilizing a single chip with tted radio–transmission circuitry,
and it supports local area networks (LANs). Bluetooth is a replacement of
cables and infrared links, and it can be used within a ten–meter diameter.
With this technology, electronic devices (e.g., mobile devices, PCs, printers,
and PDAs) can be connected to wireless data networks.
• Global Positioning System or GPS: Initially created for US military use, this
technology encompasses a system involving satellites that orbit the earth.
Satellites constantly broadcast their position and direction, and this allows the
receivers of GPS to accurately identify the specic geographic location. The
use of GPS is presently common among civilians, and GPS is most commonly
employed in car navigation systems.
• eXtensible Markup Language or XML: This technology encompasses a meta–
language that was created for the purpose of conveying the data meaning
with the utilization of a self–describing mechanism. XML tags data and
places content into context, and this allows the providers of content to
encode semantics into their documents. For XML compliant information
systems, data can be directly exchanged even between organizations with
dissimilar operation systems and data models but with the condition that the
organizations are in agreement regarding the data meaning being exchanged.
• Wireless Markup Language or WML: This technology originates XML and its
usage is for WAP especially. WML enables the representation of information
in the form of cards that are appropriate for display on mobile devices. As a
comparison, WML to WAP is HTML to the Internet.
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3.3. MOBILE APPLICATIONS IN SCM
Mobile commerce characteristics and its empowering technologies can increase
the eciency of information ows, and synchronise the operations within the
extended enterprise. This will generate better supply chain management.
Accordingly, the dierent uses of mobile commerce in prepping the organizations
in facing the challenges in supply chain management are detailed as follows:
• Mobile email and Internet for corporate users: In wireless data usage, mobile email
is the primary application, as it functions as the main line of communication
for corporate users in order that they could remain connected with their
organizations while travelling. Accordingly, the needed devices include a
laptop, a GSM modem and a connected mobile phone, and corporate users
use these devices to gain access to the mail server of the corporate network.
Both mobile email and the mobile Internet allows the mobile professionals
comprising sales professionals and customer care sta to engage in customer
related tasks including tracking the order status, accessing the marketing
information, checking the customer feedback, reporting the problems,
consulting with the technicians, and identify the locations, irrespective
of any time and anywhere. Similarly, mobile devices can be employed by
eld technicians in the communication of customer information, machine
status, logistics, and order and billing information. Also, considering that
mobile commerce enables instant data and exchange of information
within organizations and among business associates, it eases the sharing of
information and interactivity within the supply chain network, and this allows
businesses to tackle the complex business environments.
• Mobile customer care: Through mobile commerce, customers can enjoy
automated and independent operations directly from mobile terminals.
UPS (United Parcel Services) is among the organizations that have started
employing wireless devices in tracking shipments. Also, using PDA or mobile
phone, customers can nd out the estimated delivery time of their items.
Additionally, mobility provides powerful channels to business units including
nancial institutions, to allow reaching out to their customers, via the use of
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mobile devices that are handy at all times. Mobile commerce essentially can
intensify customer satisfaction through the push of information to mobile
users, and place them in a superior informed position.
• Mobile enterprise implementations: Mobile commerce is usable in the management
of logistics and workow, as well as in streamlining inventory and the control
of distribution. Bluetooth devices are an example of an appropriate inventory
control tool – it allows automatic connection and communication, in place of
manual connection. It is also easy to handle, in addition to fast data sharing
and stock check, and sharing of stock data among supply chain members. For
example, the use of Numoda which is a wireless provider, allows companies
to gather and spread corporate data using handheld devices. Accordingly,
wireless data gathering, instant wireless communication and exchange of
information, and reporting and management of logistics and workow are
among the oered applications.
4. MOBILE APPLICATION CHALLENGES IN SCM
The potential of mobile commerce applications in the context of supply chain
management may seem palpable. However, the success path may not be so simple.
In fact, the real–world utilization of mobile commerce in the context of supply
chain management can be inhibited by the technical limits of mobile devices
and wireless communication, and business concerns. Hence in this section, the
challenges that are faced by mobile commerce applications in the context of
supply chain management are elaborated, as below:
• Absence of killer application(s): Within a computing platform, a killer application
comprises an application that is suciently compelling in motivating purchases
of that platform. In this regard, within the second half of the 1990s, access
to the Internet is regarded as the killer application as it stimulates purchases
of PC. Appositely, to assure the success of mobile commerce in supply chain
management, it is important to add one or more killer applications in order
to coerce organizations to acquire and utilize mobile devices in their day–to–
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day operations. It is crucial that the killer application(s) for mobile commerce
comprehensively utilize mobility, furnish services that are directly applicable
to mobile needs, and benet users in terms of immediacy and eciency.
• Mobile devices limitations: At the present time, the wireless devices consist of
phones, laptops, computers (hand–held or palm–sized), and vehicle–mounted
interfaces. Somehow, even though mobile terminals evidence a bigger scope
of mobility and exibility, in some respects, they seem inferior, as opposed to
personal computers. For instance, mobile devices have a screen that is small
while their display resolution appears to be low. Also, user input can be impeded
by the small and multifunction keypad. Additionally, owing to the need to
be light and small physically, the mechanisms of input and output appear
to encumber the establishment of user–friendly interfaces and graphical
applications for mobile devices. Besides that, the computational power,
capacity of memory and disk, battery lifespan, and surfability, are among
the limitations of mobile phones, as they do not support the multifaceted
applications and transactions. Subsequently, they restrict the utilization of
mobile commerce in this complex supply chain management environments.
• Incompatible networks: In the cellular network standards today, there are numerous,
complex and conicting protocols. For instance, GSM encompasses a single
standard utilized by the operators of the network in the Pacic Asian region
and Europe. On the other hand, TDMA (Time–division multiple access) and
CDMA (Code division multiple access) that employ dierent standards are
widely utilized in the US. Owing to the dierences of this used standard,
there are discordancy among cellular phones globally, which cause problems
to organizations in communicating and cooperating with their suppliers,
distributors, retailers, as well as customers.
• Competing for web languages: There are a number of rival web languages
available today. For instance, newer mobile phones operate on WAP and its
WML. Conversely, NTT DoCoMo’s iMode employs condensed Hyper–Text
Markup Language or HTML. The use of incompatible standards in mobile
devices today has increased the challenges in the establishment of successful
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applications of m–commerce. Meanwhile, the increase in the number of
companies that integrate mobile commerce with supply chain management
has greatly intensied the need for having standardized web languages.
Indeed, the problem of contending web languages needs to be tackled, in
order to signicantly improve mobile communications within organizations,
and also the interactions between organizations and their business associates.
• Security concerns: Wireless communications appear to have a higher vulnerability,
as opposed to wired communications. Notably, wireless data networks today
mostly oer judicious encryption and security levels. Somehow, within
the network infrastructure, the technology does not ensure the security of
transmission. For instance, malfunctions of the mobile terminal can cause data
loss, and these terminals can even be stolen while the ongoing transactions
can be changed. In other words, the mobility of m–commerce also brings a lot
more perplexing security tasks. Considering that the applications of mobile
commerce are increasingly integral in supply chain management, addressing
the security issue highly crucial.
• User distrust: The parties involved in any transaction, need to have the capacity
in authenticating their counterparts. This is to assure that the received
messages are not disturbed, the communication content remains condential,
and that the received messages originate from the right senders. However,
considering that the mobile environment is essentially vulnerable, mobile
commerce users appear to show great concern towards the issues of security
in mobile transactions. It is therefore important that mobile commerce users
are guaranteed their nancial information security, and of the security of
the wireless transaction. Trust of users towards mobile commerce is crucial
in order that the mass adoption of mobile commerce in supply chain
management can be achieved.
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5. CONCLUSION
Supply chain management can be positively impacted by mobile commerce. Still,
there are several technical, regulatory, and social issues that need to be addressed.
In the coming years, however, mobile devices are expected to continue developing,
with the incorporation of more functionality. Expectantly, mobile commerce will
be incorporated in supply chain management in numerous aspects.
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