B2 B Commerce


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B2 B Commerce

  1. 1. B2B Commerce
  2. 2. E-Commerce framework Common business services infrastructure (security/authentication, electronic payment, directories/catalogs) The messaging & information distribution infrastructure Multimedia content & network publishing infrastructure The information superhighway infrastructure (telecom, cable TV, wireless, Internet) Public policy legal & privacy issues Technical standards for electronic documents, multimedia & n/w protocols
  3. 3. E-commerce applications <ul><li>Supply chain management </li></ul><ul><li>Video on demand </li></ul><ul><li>Procurement & purchasing </li></ul><ul><li>On-line marketing & advertising </li></ul><ul><li>Home shopping </li></ul>
  4. 4. Organizational structures <ul><li>The vertical organization </li></ul><ul><ul><li>Problems: </li></ul></ul><ul><ul><ul><li>Creates boundaries ( gaps between employees) </li></ul></ul></ul><ul><ul><ul><li>Dept goals may cause friction among depts </li></ul></ul></ul><ul><li>The horizontal organization </li></ul><ul><ul><li>Goal </li></ul></ul><ul><ul><ul><li>Facilitate smooth transition of intermediate products & services through its various functions to the customer </li></ul></ul></ul>
  5. 5. <ul><li>Goal achieving: </li></ul><ul><li>Empower employees </li></ul><ul><li>Improve communication </li></ul><ul><li>Eliminate unnecessary work </li></ul><ul><li>Two-tiered structure </li></ul><ul><ul><li>Senior management (strategic decisions & policies) </li></ul></ul><ul><ul><li>Employees (process team) </li></ul></ul><ul><li>Objective of horizontal structure: </li></ul><ul><ul><li>Change the staff’s focus from coordinating & reporting to improving flow management , work quality & increasing value for customers </li></ul></ul>
  6. 6. New forms of organization structure <ul><li>Virtual / Network Organizational structure (Eg:- CISCO Systems – manufacturer of routers) </li></ul><ul><li>Brokerage structures </li></ul>
  7. 7. Virtual / Network Organizational Structure <ul><li>The virtual organization is closely coupled upstream with its suppliers and downstream with its customers </li></ul><ul><li>A virtual organization or company is one whose members are geographically apart, usually working by computer e-mail and groupware while appearing to others to be a single, unified organization with a real physical location. </li></ul><ul><li>Geographically dispersed teams allow organizations to hire and retain the best people regardless of location. </li></ul>
  8. 8. Electronic Brokerage <ul><li>Goal:- to increase the efficiency of internal marketplace </li></ul><ul><li>Multiple services provided by a single interface with a single point of accountability on an order-by-order basis </li></ul>
  9. 9. Types of electronic brokerages in internal markets customers Order management & financial accounting Design brokerage Manufacturing & scheduling brokerage Logistic & supply chain management brokerage Production brokerage shipping Internal markets order delivery
  10. 10. Customization & Internal Commerce Electronic commerce & technology Technology provides access to a variety of products & services Consumer behavior & choice Organization dynamics & market place competition Need to cut costs drives the need for improved technology Consumer choice dictates the marketing, distribution & production of products & services The technology, choice and marketplace triad
  11. 11. <ul><li>Mass customization, not mass production </li></ul><ul><ul><li>Cars, planes, textile / clothing technology </li></ul></ul><ul><li>Example:- </li></ul><ul><ul><li>Radio frequency tags, eliminate the need for bar coded labels </li></ul></ul><ul><ul><li>Infrared scanning </li></ul></ul><ul><li>Customization of services </li></ul>
  12. 12. Supply Chain Management (SCM) <ul><li>SCM is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. </li></ul><ul><li>SCM optimizes info & product flows from the receipt of the order, to purchase of raw materials, to delivery and consumption of finished goods </li></ul>
  13. 13. Characteristics of SCM <ul><li>Ability to source raw material / finished goods from anywhere in the world </li></ul><ul><li>Centralized, global business & management strategies with flawless local execution </li></ul><ul><li>On-line, real-time distributed info processing to the desktop, providing total supply chain information visibility </li></ul><ul><li>Manage info across industries & enterprises </li></ul><ul><li>Integration of all supply chain processes & measurements </li></ul><ul><li>Development & implementation of accounting models </li></ul><ul><li>Reconfiguration of the supply chain org into high performance teams </li></ul>
  14. 14. Models of SCM <ul><li>Push based SCM </li></ul><ul><li>Pull based SCM </li></ul><ul><li>A customer &quot;pulls&quot; things towards themselves, while a producer &quot;pushes&quot; things toward customers </li></ul><ul><li>In a &quot;push&quot; system the consumer does not request the product to be developed; it is &quot;pushed at&quot; the end-user by promotion. </li></ul><ul><li>example:- perfume product </li></ul><ul><li>In a &quot;pull&quot; system the consumer requests the product and &quot;pulls&quot; it through the delivery channel. </li></ul><ul><li>example:- car manufacturing company Toyota. Toyota only produces cars when they have been ordered by the customers. </li></ul>
  15. 15. <ul><li>Elements of these models </li></ul><ul><li>logistic & distribution (integrated logistics) </li></ul><ul><li>A methodology employed to more efficiently manage inventory mechanisms. The activities are viewed as a system, rather than many different activities. Usually involves the inventory pulls from manufacturing sites and warehouses, through distribution to the customer. The execution involves merging transportation modes, systems and distribution for the optimum solution. </li></ul>
  16. 16. <ul><li>2. Integrated marketing & distribution </li></ul><ul><li>integrate the customer directly & react to changes in demand by modifying the supply chain </li></ul><ul><li>3. Agile manufacturing </li></ul><ul><li>Agile manufacturing is a term applied to an organization that has created the processes, tools, and training to enable it to respond quickly to customer needs and market changes while still controlling costs and quality. </li></ul>
  17. 17. Key attributes <ul><li>Agility has four components: </li></ul><ul><li>delivering value to the customer </li></ul><ul><li>being ready for change </li></ul><ul><li>valuing human knowledge and skills </li></ul><ul><li>forming virtual partnerships </li></ul>
  18. 18. Financial / marketing-driven forecast Master scheduling Replenishment based on distribution center inventory Manual purchase order & invoicing Order point based on warehouse inventory & historical forecasts Deals, promotions & forward buying Manual purchase orders, info entry and o/p Order point based on shelf inventory & forecasts Promotions Manual entry of items to be reordered Retail store Retail distribution center Manufacturer Push based supply chain Consumers purchase merchandise
  19. 19. POS data collection Perpetual inventory tracked UPC level Automatic replenishment using EDI services Automatic replenishment Shipping container marking cross-dock receiving EDI services Demand driven forecast based on POS data & product development Micromarket-driven Short cycle manufacturing Advances shipping notice & EDI services Bar code scanners & UPC ticketing Manufacturer Retail distribution center Retail store Pull based supply chain Consumers purchase merchandise