Electronic Commerce, Seventh Annual Edition1 Purchasing, Logistics, and Support Purchasing activities  Include identifying vendors, evaluating vendors, selecting specific products, and placing orders Supply chain  Part of an industry value chain that precedes a particular strategic business unit

Electronic Commerce, Seventh Annual Edition2 E-procurement or e-sourcing  Use of Internet technologies in procurement and sourcing activities

Electronic Commerce, Seventh Annual Edition3 Direct materials Replenishment purchasing Indirect materials

Electronic Commerce, Seventh Annual Edition4 Logistics Activities Objective of logistics  right goods in the right quantities in the right place at the right time include managing:  Inbound  Outbound

Electronic Commerce, Seventh Annual Edition5 Electronic Data Interchange EDI is the computer-to-computer transfer of business information between two businesses Usually specific agreed formats Commonly transaction data

Electronic Commerce, Seventh Annual Edition6 Emergence of Broader EDI Standards (transaction sets) Late 2000  ASC X12 organization and UN/EDIFACT develop one common set of international standards

Electronic Commerce, Seventh Annual Edition7 Value-Added Networks Direct connection EDI  own on-site EDI translator computer  connected directly to each other dedicated leased lines

Electronic Commerce, Seventh Annual Edition8 Value-Added Networks Indirect connection EDI Use Value Added Networks (VAN) as electronic middleman

Electronic Commerce, Seventh Annual Edition9 Advantages of Using a VAN Users need to support only the VAN’s one communications protocol The VAN:  Records message activity in an audit log  Can provide translation between different transaction sets used by trading partners  Can perform automatic compliance checking

Electronic Commerce, Seventh Annual Edition10 Disadvantages of Using a VAN Cost  enrollment fee, a monthly maintenance fee, transaction fee Different companies use different VAN’s

Electronic Commerce, Seventh Annual Edition11 EDI on the Internet Initial roadblocks  security  inability to provide audit logs and third- party verification of message transmission and delivery Nonrepudiation  Ability to establish that a particular transaction actually occurred

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Electronic Commerce, Seventh Annual Edition13 Electronic Marketplaces and Portals Vertical portals (vortals)  Offer a doorway (or portal) to the Internet for industry members  Vertically integrated

Electronic Commerce, Seventh Annual Edition14 IndustryPortals

Electronic Commerce, Seventh Annual Edition15 Private Company Marketplaces E-procurement software  purchasing function through Web interface Private company marketplace  provides auctions, request for quote postings, and other features

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Electronic Commerce, Seventh Annual Edition17 Industry Consortia-Sponsored Marketplaces  Created in 2000 by a consortium of DaimlerChrysler, Ford, and General Motors

Electronic Commerce, Seventh Annual Edition18 Industry Consortia-Sponsored Marketplaces Marriott, Hyatt, and three other major hotel chains formed a consortium to create Avendra

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