With the great speed of economic globalization, E-Business is developing in a surprising speed through the wide-spread of information technology. Nowadays, there are a lot of big E-business corporations such as Amazon, E-bay focus on different E-business model and field. However when these international companies carving up the global market, some local enterprises also growing up and want to share this big cake.
Taobao (www.taobao.com), a Chinese-based company which is a leading platform for C2C personal transactions, was founded in 2003 by the 450 million investment from world’s best B2B company——Alibaba. Taobao is a typical example of China E-business style. Taobao paid a lot of efforts in order to China and Asia’s market dominance, during a lot of difficulties and challenges especially in the competition with E-bay.
But some problems still exist in Taobao’ credit system and logistics model. These tough problems also exist in each E-business companies. Hence, how to fix these problems still needs development of information technology.
BPR INITIATIVES
Weizhi was built up from a small tailor’s. With the dramatically expanding in the enterprise size and production ability, a serious problem raise up that their outdated and ineffective supply chain became the binding constraint of the Weizhi’s developing. That is, the company was under-performing, the market share of Weizhi Group in clothing industry of Mainland China has continually declined and the revenues were not growing as expected since 2002.
According to our early study on Weizhi’, we found that there are four major issues can be identified by now. 1) Complicated purchasing procedures. It means the purchasing department in Weizhi often needs to take complex steps to choose a supplier for one particular demand and then the following is ordering, waiting and checking procedures with a lot of unnecessary hand-offs. 2) Long lead-time. It makes the company hard to catch up the pace of the