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Schneider 6. Selling To Businesses Online
Schneider 6. Selling To Businesses Online
6. E-Business
Businesses Online
SCM
International
Orders/Complex
- Quantity
- Quality
- Time
- Payment- L/C
- Shipping rice
- Monitoring
Shaan
Aus. Kangaroo
& Cattle Co.
potatoes
Supply chain management
Job of managing integration of company supply
management and logistics activities across multiple
participants in a particular product’s supply chain
--GOAL--
Achieve
higher-quality
and lower-cost
product at the
end of the chain
Typical business purchasing process
Typical business purchasing process ...
Complex?
Purchasing, Logistics, and ...
Purchasing ...
• Direct materials (part of finished product)
– Contract purchasing, Spot purchasing
• Indirect materials (MRO)
– Standard items- Engine oil, parts, ...
● Supply Chain
○ Procurement
■ Purchasing
• E-business for
– Cost reductions
– Business process improvements
– Flexibility
– Synergy
• Consider suppliers
– Cost? Quality? Delivery time ……
– Monitoring, relationship
– Manage a complex process
e-government
Grainger.com Web store (B2B)
MRO
Hundreds of thousands of product
EDI
Maintenance, repair and operation supplies
https://www.youtube.com/watch?v=iALiS4FBB6E
Logistics- movement
• Both sales and purchasing
– Outbound, Inbound
• Goal
– right goods, right quantities
– right place, right time, cost …
SCM
Support Activities
ERP
• Training
– Distribute using company intranet
• Knowledge management
– Collection, classification, dissemination
E-Government
Electronic Data Interchange
EDI
• Standard format & Compatibility/translators Protocol
• Most B2B e-commerce has adapted EDI
• EDI Payments
– Clearing House
– EFT
EDI Standard
EDI
Protocol
• EDI Format/Standard
– E.g. EDI Internet Integration (EDIINT, ANSI)
Standard
– Protocol set for exchanging data (EDI, XML, and
other formats) over the Internet
– Secure transmission
– Allows companies to preserve their EDI investments
17
Compare to a paper-based purchasing process
Direct
VAN Network
Indirect
Value-Added Networks ...
• Nonrepudiation
– Establish that a particular transaction occurred
– VAN’s audit logs (indirect connection EDI)
– Comparison of trading partners’ message logs (direct
21
connection EDI)
Network Model of Supply Chain
Non-Value Added
Intermediaries!
Economic Organization in Purchasing
Value Creation in a Supply Web
Advantage- Competitive
– Increase process speed,
reduce costs, increase
manufacturing flexibility,
response to market change
– Ultimately value added to end consumer
Advantages of using Internet technologies in supply
chain management
Classmates Friend BFF Life Partner
Materials Tracking Technologies
Continual communication
and information sharing Service
B2B Marketplaces
Walton
Chaldal Pran
B2B marketplaces ...
Power?
B2B marketplaces ...