Industry Forecasts Not all industries similarly affected by b2B e-commerce Not all industries would benefit equally Factors influencing move to e-commerce Significantutilization of eDi large investments in it and Internet infrastructure firms with heavy investment in EDi and technology will move faster and benefit most .o Market concentrated on purchasing or selling Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide12-12
Industry Forecasts ◼ Not all industries similarly affected by B2B e-commerce ◼ Not all industries would benefit equally ◼ Factors influencing move to e-commerce ❖ Significant utilization of EDI ❖ Large investments in IT and Internet infrastructure ❖ Firms with heavy investment in EDI and technology will move faster and benefit most ❖ Market concentrated on purchasing or selling Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 12-12
Potential benefits of b2B E-commerce a Lower administrative costs Lower search costs for buyers Reduced inventory costs g Increasing competition among suppliers o Reducing inventory carried Lower transaction costs: Automation and elimination of paperwork Increased production flexibility by ensuring just-in-time parts delivery Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 12-13
Potential Benefits of B2B E-commerce ◼ Lower administrative costs ◼ Lower search costs for buyers ◼ Reduced inventory costs ❖ Increasing competition among suppliers ❖ Reducing inventory carried ◼ Lower transaction costs: ❖ Automation and elimination of paperwork ◼ Increased production flexibility by ensuring just-in-time parts delivery Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 12-13
Potential Benefits of B2B E-commerce(cont a Improved quality of products by increasing cooperation among buyers and sellers Decreased product cycle time Increased opportunities for collaboration Greater price transparency Increased visibility, real-time information Sharin g However some risk is posed by increased globalization and consolidation Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 12-14
Potential Benefits of B2B E-commerce (cont.) ◼ Improved quality of products by increasing cooperation among buyers and sellers ◼ Decreased product cycle time ◼ Increased opportunities for collaboration ◼ Greater price transparency ◼ Increased visibility, real-time information sharing ◼ However, some risk is posed by increased globalization and consolidation Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 12-14
Insight on Society: Class Discussion Where's My iPad: Supply Chain Risk and Vulnerability Why does concentrating production on fewer suppliers also concentrate risk? How does globalization play a part in increased risk? a What types of procedures could be implemented, given increased globalization to reduce risk? Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 12-15
Insight on Society: Class Discussion Where’s My iPad: Supply Chain Risk and Vulnerability ◼ Why does concentrating production on fewer suppliers also concentrate risk? ◼ How does globalization play a part in increased risk? ◼ What types of procedures could be implemented, given increased globalization, to reduce risk? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 12-15
The procurement process and the supply chain Procurement process o The way firms purchase materials they need to make products Steps in procurement process 6 deciding who to buy from and what to pay &s Completing transaction Each step is composed of many business processes and subactivities requiring data to be recorded in seller, buyer, and shipper information systems Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide12-16
The Procurement Process and the Supply Chain ◼ Procurement process: ❖ The way firms purchase materials they need to make products ◼ Steps in procurement process ❖ Deciding who to buy from and what to pay ❖ Completing transaction ❖ Each step is composed of many business processes and subactivities requiring data to be recorded in seller, buyer, and shipper information systems Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 12-16