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Chapter 5 Business-to-Business Strategies: From Electronic Data Interchange to Electronic Commerce http://digitalenterprise.org/models/models.html
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Sales Cost of goods sold Gross margin Expenses Net income
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Supply Chain Management
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Using Internet Technology in the Supply Chain
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Increasing Efficiency in the Supply Chain Technology in the Supply Chain Increasing Efficiency in the Supply Chain Building and Maintaining Trust in the Supply Chain
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Purchasing, Logistics, and Support Activities potential for cost reduction & business process improvement in purchasing, logistics, and support activities.
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Purchasing Activities
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Businesses make a distinction between direct and indirect materials. Direct materials are those materials that become part of the finished product. Indirect materials are all other materials that the company purchases.
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Logistic Activities The classic objective of logistics is to provide the right goods in the right quantities in the right place at the right time.
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How can the internet and web improve logistics management Increase alternatives for receiving, warehousing, controlling inventory,& delivery schedules Lower transaction costs Provide constant connectivity between firms engaged in logistic management Delivery of real time shipping info Allowing customers to track info
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Support Activities
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Training and Knowledge Management One common activity that underlies multiple primary activities is training. Knowledge management is another support activity that intentionally collects, classifies, and disseminates information about a company, its products, and its processes.
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Network Model of Economic Organization
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E-Government Although governments do not typically sell products or services to customers, they do perform many functions for their stakeholders. Governments also perform business-like activities; for example, they employ people, buy supplies from vendors, and distribute benefit payments of many kinds.
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Evolution of e-commerce mechanisms EDI/ERP Sell side Storefront Buy side e-procurement B2B Marketplace
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Electronic Data Interchange (EDI) EDI is a computer-to-computer transfer of business information between two businesses that uses a standard format. trading partners. EDI-compatible.
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Value-Added Networks EDI reduces paper flow and streamlines the interchange of information among departments within a company and between companies. Trading partners can implement the EDI network and EDI translation processes in several ways use either direct connection or indirect connection.
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Direct Connection Between Trading Partners
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Indirect Connection Between Trading Partners
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Electronic Marketplaces and Portals
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Is your business suited to an e-marketplace? Who is your target customer? Where are your target customers located? Do your customers buy online? Is your business in an expansion mode? Can your team support e-marketplace efforts? Will e-marketplaces conflict with any other distribution channels?
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Industry Marketplaces
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Marketplaces
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