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E-Business and its Rules - Essay Example

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This paper will seek to describe rules of e-commerce in light of Dell Inc and e-business current trends with their impacts on e-logistics. Due to the need for companies to have wide, fast and flexible communications, there has been the need to implement e-logistics…
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E-Business and its Rules
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Download file to see previous pages Then PCs are assembled on customer demands and shipped-sufficed- in 5-10 days (Chopra and Meindl 2010 pp.108-111). Payments are also done online. This paper will seek to describe rules of e-commerce in light of Dell Inc and e-business current trends with their impacts on e-logistics. E-Business Rules Due to the need for companies to have wide, fast and flexible communications there has been the need to implement e-logistics. In the process of implementation of e-logistics, there are some rules of e-business that are to be followed. To illustrate these rules let us consider Dell Inc. In e-business technology is no longer just used to create and offer products but also as a means to make their business more effective in delivering services and products to their clients. Dell in its quest to implement e-logistics has redesigned its business model from the physical retail stores to the application of technology in an online supply channel. This enables it to conducts most of its transactions with customers with the aid of their website platform where customers can order PCs (Kalakota and Robinson 2001 p.16); (Chopra and Meindl 2010 pp.108-111). ...
This has been achieved after it streamlined its supply chains and started selling PCs directly to customers. This has enabled Dell to collect their customer’s preferences and needs information, thus enhancing better-personalized customer services (Kalakota and Robinson 2001 p.14); (Chopra and Meindl 2010 pp.108-111. Companies willing to implement e-logistics must create flexible grouping through integration. This will facilitate efficient customer service as well as reduce expenditures. Dell has benefited much through integrating its transactions on their website. This has led to the reduction of costs outlay in terms of inventory as through the online website they can aggregate their inventories by geographical locations. Since there are no physical retail stores the company reduced its facility and information costs (Kalakota and Robinson 2001 p.24); (Chopra and Meindl 2010 pp.108-111. Firms willing to engage in e-logistics must be willing to do away with ineffective traditional business models which are detrimental to their success. This calls for business managers to reorganize and plan their business models all over again to succeed in the e-business. Dell Inc. in order to successfully implement e-logistics it had to leave its old retail supply chain model where it used to assemble PCs and store them waiting to be sold. Currently, it receives orders online from customers and then assembles PCs and ship them (Kalakota and Robinson 2001 p.10); (Chopra and Meindl 2010 pp.108-111). Although Dell Inc. has succeeded in implementing e-logistics, it still experiences hindrances.This is because customers after placing their order they have to wait for 5 to 10 days to receive PCs. E-commerce Trends Change is inevitable, and ...Download file to see next pages Read More
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