BusinesstoBusiness Strategies: From Electronic Data Interchange to Electronic Commerce

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Chapter 5

• Business-to-Business Strategies From Electronic
  Data Interchange to Electronic Commerce

http//digitalenterprise.org/models/models.html
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Sales Cost of goods sold Gross margin Expenses Net
income
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Supply Chain Management
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Using Internet Technology in the Supply Chain

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Increasing Efficiency in the Supply Chain

• Technology in the Supply Chain
• Increasing Efficiency in the Supply Chain
• Building and Maintaining Trust in the Supply
  Chain

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Purchasing, Logistics, and Support Activities

• potential for cost reduction business process
  improvement in purchasing, logistics, and support
  activities.

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Purchasing Activities

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Purchasing Activities

• Businesses make a distinction between direct and
  indirect materials.
• Direct materials are those materials that become
  part of the finished product.
• Indirect materials are all other materials that
  the company purchases.

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Logistic Activities

• The classic objective of logistics is to provide
  the right goods in the right quantities in the
  right place at the right time.

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How can the internet and web improve logistics
management

• Increase alternatives for receiving, warehousing,
  controlling inventory, delivery schedules
• Lower transaction costs
• Provide constant connectivity between firms
  engaged in logistic management
• Delivery of real time shipping info
• Allowing customers to track info

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Support Activities
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Training and Knowledge Management

• One common activity that underlies multiple
  primary activities is training.
• Knowledge management is another support activity
  that intentionally collects, classifies, and
  disseminates information about a company, its
  products, and its processes.

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Network Model of Economic Organization
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E-Government

• Although governments do not typically sell
  products or services to customers, they do
  perform many functions for their stakeholders.
• Governments also perform business-like
  activities for example, they employ people, buy
  supplies from vendors, and distribute benefit
  payments of many kinds.

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Evolution of e-commerce mechanisms

• EDI/ERP
• Sell side Storefront
• Buy side e-procurement
• B2B Marketplace

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Electronic Data Interchange (EDI)

• EDI is a computer-to-computer transfer of
  business information between two businesses that
  uses a standard format.
• trading partners.
• EDI-compatible.

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Value-Added Networks

• EDI reduces paper flow and streamlines the
  interchange of information among departments
  within a company and between companies.
• Trading partners can implement the EDI network
  and EDI translation processes in several ways use
  either direct connection or indirect connection.

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Direct Connection Between Trading Partners

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Indirect Connection Between Trading Partners

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Electronic Marketplaces and Portals
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Is your business suited to an e-marketplace?

• Who is your target customer?
• Where are your target customers located?
• Do your customers buy online?
• Is your business in an expansion mode?
• Can your team support e-marketplace efforts?
• Will e-marketplaces conflict with any other
  distribution channels?

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Industry Marketplaces
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Marketplaces