Outline
THE INTERNET ELECTRONIC COMMERCE
E-commerce Definitions
Outline - Continued
INVENTORY TRACKING INVENTORY REDUCTION
Warehousing for E-commerce Just-in-Time Delivery for E-commerce
Learning Objectives
When you complete this supplement, you should be able to : Identify or Define:
E-commerce E-business Online catalogues Outsourcing E-procurement
Describe or Explain:
How E-commerce is changing the supply chain Online auctions
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E-Commerce
The use of computer networks, primarily the internet, to buy and sell products, services, and information.
E-Business
all about cycle time, speed, globalization, enhanced productivity, reaching new customers and sharing knowledge across institutions for competitive advantage.
Louis Gerstner, Chairman, IBM
E-Commerce Definitions
Business-to business (B2B) Both sides of the transaction are businesses, non-profit organizations, or governments. Business-to-consumer (B2C) E-commerce transactions where customers are individual consumers Consumer-to-consumer (C2C) Consumers sell directly to each other. Consumer-to-business (C2B) Individuals sell services or goods to businesses
Business
Consumer
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Security of data, proprietary business information Impact on the volume of sales and on the 12 bottom line.
Benefits of E-commerce
Improved, lower cost information Lower entry costs Available 24/7, virtually anywhere in the world Availability expands markets for both buyers and sellers Decreases the cost of paper-based information Reduces the cost of communication Provides richer communication than traditional means Fast delivery of digitized products Increased flexibility of location
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Limitations of E-commerce
Lack of system security, reliability and standards Lack of privacy Insufficient bandwidth Integrating e-commerce software with existing software is still a challenge Lack of trust in (1) unknowns on the other end of the transaction, (2) integrity of the transaction itself, and(3) electronic 14 money that is only bits and bytes
E-Procurement
Purchasing or order release communicated over the internet or via approved online vendor catalogues
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Online Catalogues
Information about products made available in electronic form via the Internet.
Provided by vendors Developed by buyers Provided by intermediaries
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Supplier
Distributor
Hospital
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The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
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Supplier
Distributor
Hospital
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Online Auctions
Useful for disposing of excess raw material, and discontinued and excess inventory Online auctions lower entry barriers and increase the potential number of customers
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E-Procurement
Significant savings (10%) Requires new skills and staffing in procurement area
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Inventory Tracking
Mass customization requires knowledge of location of all goods Requires data collection, barcode technology, RF and electronic communications to track inventory in transit, on the shop floor, and in the warehouse Customers can learn what is happening with their order 25
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