Milpark's Innovative B.Com Stream: E-commerce, Social Media, and Logistics Focus

Academics & Programmes

20 May 2024

There are a couple of lessons to be learned from the PRIME hydration drink craze that took the world—and South Africa—by storm in 2023. It was reported that at one point, bottles of the drink were being sold for up to R800 each.

The product was heavily promoted on social media by influencers KSI and Logan Paul, leading to a frenzy among customers.

However, stores quickly ran out of stock, resulting in negative reviews, and, a year later, the hype tapered off. Many stores now have excess stock that they struggle to sell, even at R10 per bottle.

“This serves as a classic example of a supply chain management problem, where the businesses involved were unable to adapt to market opportunities and competitive pressures in real-time,” explained supply chain management expert and lecturer at Milpark Education, Nomalizo Dyili.

Insights from Supply Chain Expert

Nomalizo is a lecturer on the Bachelor of Commerce (BCom) degree with a major in Logistics and Supply Chain Management. She says the boom in e-commerce since the COVID-19 pandemic has changed the way that people shop for products. “Businesses now need to think about the Internet and social media when they put together their operation’s supply chain approach.”

Customers can be reached faster, and products must be shipped and delivered smoothly, often across the globe, factoring in regional wars and trade disputes, etc. “What is important, is that business leaders become aware of the opportunity for a more synchronised supply chain approach instead of the traditional model,” says Nomalizo.

Collaboration in the New Business Landscape

Our new business environment requires an ecosystem of collaboration among supply chain partners, where the flow of information, money, goods, and services are utilised and shared to pinpoint challenges and mitigate risks. This is considered the foundation of a successful supply chain. At any given point, this is the focal area of a supply chain professional or business leader.

The third-party logistics partner is a key relationship in any business. This is how products are shipped, delivered, and moved online. A war in the Middle East may affect oil prices and this could impact how products are transported across borders, pushing up costs, etc. Customers don’t want to wait months for purchased items and they also don’t want to pay exorbitant customs taxes.

“We have found people in the industry calling for more graduates with specialised knowledge of international supply chains and knowledge in the field of logistics,” says Shaaira Sackoor, head of department of the School of Commerce at Milpark Education. Where supply chain expertise may have been an additional task of a company employee in the past, she says this kind of expertise is increasingly prioritised by companies.

Success in E-commerce Ventures

One example of an e-commerce business that has done remarkably well, is online fast-fashion business Shein. The Chinese clothing retailer reported over $2bn in profits for 2023. Looking closely at their business model, smooth supply chain management emerges as the backbone of Shein’s success. The company has done well especially on third-party agreements, air-shipping to the US, for instance, to avoid import taxes.

For many business leaders, the explosion of social media platforms is still a bit bewildering. As US journalist John Herrman says, “The analytics suggest a high likelihood that you’re aware there is an app named TikTok, and a similarly high likelihood that you’re not totally sure what it’s all about.”

But with billions of users on social media, the time to get savvy about how they influence customers is now. Otherwise, businesses may find themselves facing the age-old adage of youngsters everywhere – you snooze, you lose.

Share this article:

Milpark