eCommerce
eCommerce
eCommerce – Supply Chains eCommerce, or electronic commerce, can be defined to include all electronically mediated information exchanges between an organisation and its external stakeholders.
In simple terms, this means that it includes the use of communication networks to interact with both suppliers and customers, to negotiate and complete commercial transactions. When many of you think about eCommerce, your mind probably jumps first to examples where you, the consumer, buy items such as books, airline tickets, and music, over the Internet, directly from a supplier (e.g. Amazon, Qantas, iTunes). This form of eCommerce is referred to as Business-to-Consumer (B2C) eCommerce.
While B2C is probably the form of eCommerce that you are most aware of, arguably the more important form, in dollar value, is Business-to-Business (B2B) eCommerce. B2B eCommerce involves businesses trading, via networks, with other businesses.
To understand the importance of B2B eCommerce, you should look first at what is meant by a “SUPPLY CHAIN”. A Supply Chain refers to the flow of materials, information and services from raw material suppliers through factories and warehouses to the end customers. A supply chain includes the organisations and processes that create and deliver these products, information and services to the end customers.
Making Supply Chains work is very Tricky!!! In short, it requires informed cooperation between the businesses which together cause the flow of materials, information and services, from raw product to the eventual customer.
So why is this tricky? Well – if you are a business operating as part of a supply chain there will be delays between you placing orders with your suppliers and you receiving those deliveries. While you are waiting for deliveries, you don’t want stockouts – customers demanding goods from you which you simply don’t have in stock. On the other hand, you do not want to overstock (holding large quantities
eCommerce – Supply Chains eCommerce, or electronic commerce, can be defined to include all electronically mediated information exchanges between an organisation and its external stakeholders.
In simple terms, this means that it includes the use of communication networks to interact with both suppliers and customers, to negotiate and complete commercial transactions. When many of you think about eCommerce, your mind probably jumps first to examples where you, the consumer, buy items such as books, airline tickets, and music, over the Internet, directly from a supplier (e.g. Amazon, Qantas, iTunes). This form of eCommerce is referred to as Business-to-Consumer (B2C) eCommerce.
While B2C is probably the form of eCommerce that you are most aware of, arguably the more important form, in dollar value, is Business-to-Business (B2B) eCommerce. B2B eCommerce involves businesses trading, via networks, with other businesses.
To understand the importance of B2B eCommerce, you should look first at what is meant by a “SUPPLY CHAIN”. A Supply Chain refers to the flow of materials, information and services from raw material suppliers through factories and warehouses to the end customers. A supply chain includes the organisations and processes that create and deliver these products, information and services to the end customers.
Making Supply Chains work is very Tricky!!! In short, it requires informed cooperation between the businesses which together cause the flow of materials, information and services, from raw product to the eventual customer.
So why is this tricky? Well – if you are a business operating as part of a supply chain there will be delays between you placing orders with your suppliers and you receiving those deliveries. While you are waiting for deliveries, you don’t want stockouts – customers demanding goods from you which you simply don’t have in stock. On the other hand, you do not want to overstock (holding large quantities