eBusiness

Lecture 5 eCommerce Business to Business Strategies

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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eCommerce Business to Business Strategies Lecture 5 - 5.3

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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eCommerce Business to Business Strategies Lecture 5 - 5.4

Purchasing Activities
Identifying vendors Evaluating vendors Selecting specific products Placing orders Resolving issues after order has been received

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eCommerce Business to Business Strategies Lecture 5 - 5.5

Sourcing Suppliers
Procurement staff have high levels of product and supplier knowledge eProcurement involves use of Internet technologies to assist eSourcing uses specialist purchasing websites Business purchasing process is complex

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eCommerce Business to Business Strategies Lecture 5 - 5.6

Steps in a Typical Business Purchase Process

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

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eCommerce Business to Business Strategies Lecture 5 - 5.7

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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eCommerce Business to Business Strategies Lecture 5 - 5.8

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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eCommerce Business to Business Strategies Lecture 5 - 5.9

Enhancing Logistics Via Web Technology

Web-enabled automated warehousing operations Delivering real time shipment information to customers browsers Making freight tracking web pages available to customers Using global positioning satellite (GPS) technology to monitor vehicle movements

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eCommerce Business to Business Strategies Lecture 5 - 5.10

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 force automation Making training materials available online Facilitating the collection, classification and dissemination of information via knowledge management

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eCommerce Business to Business Strategies Lecture 5 - 5.11

eGovernment
Provide ways for citizens to interact online with their government Distribute benefit payments Administer tax laws Increase the availability of information Government departments buying online from vendors

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eCommerce Business to Business Strategies Lecture 5 - 5.12

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

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eCommerce Business to Business Strategies Lecture 5 - 5.13

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

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eCommerce Business to Business Strategies Lecture 5 - 5.14

Information Flows in a PaperBased Purchasing Process

Schneider, G. (2007) Electronic Commerce 7th Ed, p.234

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eCommerce Business to Business Strategies Lecture 5 - 5.15

Information Flows in an EDI Purchasing Process

Schneider, G. (2007) Electronic Commerce 7th Ed, p.235

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eCommerce Business to Business Strategies Lecture 5 - 5.16

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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eCommerce Business to Business Strategies Lecture 5 - 5.17

Direct Connection EDI

Schneider, G. (2007) Electronic Commerce 7th Ed, p.238

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eCommerce Business to Business Strategies Lecture 5 - 5.18

Indirect Connection EDI Through a VAN

Schneider, G. (2007) Electronic Commerce 7th Ed, p.238

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eCommerce Business to Business Strategies Lecture 5 - 5.19

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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eCommerce Business to Business Strategies Lecture 5 - 5.21

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