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Supply Chains for Financial Institutions
As a consequence of the Internet and advanced technologies, companies that operate brick and mortar businesses are finding that to survive they must have a strong internet presence. In the banking and financial industry, all the major banks have online banking services, and other firms that are not affiliated with existing banks, such as First Internet Bank of Indiana, have opened online banks. Because financial services do not involve a physical product, they are easy to offer on the Web (Schneider, 2004). The supply chain used for a brick-and-mortar business differs from the supply chain used for businesses that operate on the web. Originally supply chain management was developed to reduce costs, but today the goal of the supply chain is to add value in the form of benefits to the ultimate consumer at the end of the supply chain (Schneider 2004). When a company makes the important decision to offer services online, modifications must be made to the supply chain. In this paper the writers will describe the supply chain used the banking industry for a brick-and-mortar business and the supply chain modifications necessary to move from brick-and-mortar to a Website.
Financial Institutions in a Brick and Mortar Environment
Financial investors and analysts are progressively placing money on big and traditional bricks and mortar companies with Internet tactics or on companies that center on Internet infrastructure (Author Unknown, n.d). In current times, many banks have been forced to outsource due to the pressures of expansion, competition and widespread cost-cutting initiatives (Author Unknown, n.d). N ...