Tuesday, 24 January 2017

EBusiness in Supply Chain

Information is now considered to play an important role in competitive strategies. The benefits are as follows:
  1. Improving the efficiency of order processing
  2. Reducing costs by using just in time inventory management
  3. Securing trading partners
  4. Making it easier to customise products and services
The standardization of internet applications and the use of low cost public network infrastructures have resulted in interorganisational networks being applied in various ways. Making it easier for organisations to use electronic transactions has helped to reduce costs in gaining access to large amounts of suppliers and customers.  No longer are organisations only tied to their existing trading partners, the electronic marketplace provides new links that can be used.  In time, as the new e-business services and networks grow, it’s likely that organisations will be debating which governance structure is best to use. It will be important to identify the relationship between strategic characteristics of the relationship and the governance structure.

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