chapter05 B2B strategies from EDI to Electronic commerce.ppt

Chapter 5: B2B strategies: from EDI to  merce
Purchasing, logistics, and support activities
Purchasing activities
1. Procurement: includes all purchasing activities,
managing and developing relationships with
key suppliers.
2. The business purchasing process is much plex than consumer purchasing processes.
Direct vs. indirect materials purchasing
Direct materials: part of the finished product

Indirect materials: other materials (office
supplies, computer hardware
and software)
Logistics Activities
Businesses: products delivered to customers
raw material arrive
raw material →finished goods
Web-enabled tracking systems: let costumers
track their shipments themselves
Support activities
include: finance and administration
human resources
technology development
human resources :training and knowledge
management.
knowledge management: is the intentional
collection, classification and
dissemination of information about a
company ,its products, and its processes.
Electronic Data interchange
Definition
EDI:
1. was the first form of merce widely used in business, is still the method used for most B2B electronic transactions.
2. is puter-puter transfer of business information between two businesses that uses a standard format of some kind
Business information: transaction data, price
quotes,order-status inquiries
Transaction data:
invoices
purchase order
requests for quotations
bills of lading
receiving reports
How EDI works
benefits
structure
Framework:
1. EDI on the
2. supply chain management
3. electronic marketplaces
1. EDI on the
a. VAN: (value-work)
Van: is pany that munications equipment, software, and skills needed to receive, store and forward electronic messages that contain EDI transaction sets.
Disadvantages: high cost-----enrollment fee, monthly maintenance fee, transaction fee
Trading partners with few transactions: high fixed costs
Trading partners wi