eb - lecture 5 - ecommerce business to business strategies

7/28/2019 eB - Lecture 5 - eCommerce Business to Business Strategies

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eBusiness

Lecture 5 eCommerce Business to

Business Strategies


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NCC Education LimitedV1.0

eCommerce Business to Business Strategies Lecture 5 - 5.2

Introduction to Lecture 5

Topics covered:

Purchasing activities

Logistics activities

Support activities

eGovernment

Electronic data interchange (EDI)

Value-added networks (VANS)


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Background to B2B eCommerce

Companies can use eCommerce to improve:

Purchasing and logistics processes

Support processes: Finance

Administration

Human resources

Technology development

Flexibility to respond to changing circumstances


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Purchasing Activities

Identifying vendors

Evaluating vendors

Selecting specific products

Placing orders

Resolving issues after order has been

received


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Sourcing Suppliers

Procurement staff have high levels of

product and supplier knowledge

eProcurement involves use of Internettechnologies to assist

eSourcing uses specialist purchasing

websites

Business purchasing process is complex


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Steps in a Typical

Business Purchase Process

Schneider, G. (2007) Electronic Commerce 7th Ed, p.221


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Maintenance, Repair and

Operating (MRO) Supplies Indirect materials low value

Suppliers create online catalogues

Purchases often made through purchasing cards Vendors save costs in printing and shipping

catalogues and handling telephone calls

Cost of processing MRO order online can be 10%

of handling same order via telephone



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Logistics Activities

Providing the right goods in the

right quantities in the right place

at the right time

Receiving

Warehousing

Controlling

Inventory

Scheduling and controlling vehicles Distributing finished goods



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Enhancing Logistics

Via Web Technology Web-enabled automated warehousing

operations

Delivering real time shipment information tocustomers browsers

Making freight tracking web pages availableto customers

Using global positioning satellite (GPS)technology to monitor vehicle movements



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Enhancing Support Activities

Via Web Technology Making human resources information available via

a secure web connection

Online payroll processing

Web-enabled sales support and sales forceautomation

Making training materials available online

Facilitating the collection, classification and

dissemination of information via knowledgemanagement



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eGovernment

Provide ways for citizens tointeract online with theirgovernment

Distribute benefit payments

Administer tax laws Increase the availability of

information

Government departmentsbuying online from vendors

C B i B i S i L 12



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Electronic Data Interchange (EDI)

Computer to computer transfer of business

information between two businesses that use a

standard format of some kind Invoices

Purchase orders

Requests for quotations

Bills of lading (shipping documents)

Receiving reports

C B i t B i St t i L t 5 5 13


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EDI Standards

ASC X12 (American National Standards

Institute)

UN/EDIFACT (United Nations) Agreement to develop one set of

international standards, but..no date set

for implementation

C B i t B i St t i L t 5 5 14


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Information Flows in a Paper-

Based Purchasing Process


eCommerce Business to Business Strategies Lecture 5 5 15


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Information Flows in an

EDI Purchasing Process




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Value-Added Network (VAN)

Provides communications equipment, software and

skills

Enables the receipt, store and forward of electronic

messages containing EDI transaction sets

Customer must install EDI translator software

Customers connect to each other via the VAN

(indirect connection EDI)



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Direct Connection EDI


eCommerce Business to Business Strategies Lecture 5 - 5 18


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Indirect Connection EDI

Through a VAN




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EDI on the Internet

XML used as the basis for information exchange

Content Inspired Component Architecture (CICA)

provides greater flexibility

Emergence of ebXML

Financial EDI (FEDI) provide instructions to banks

FEDI transactions handled by EDI-capable banks



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eCommerce Business to Business Strategies Lecture 5 5.20

Summary

eProcurement can aid purchasing activities

including sourcing suppliers

Web technologies can enhance logistics by

tracking and reporting on freight movements

eGovernment can improve links between citizens

and their government

EDI can radically improve the transfer of business

information



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NCC Education Limited

eCommerce Business to Business Strategies Lecture 5 5.21

eb - lecture 5 - ecommerce business to business strategies

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