Delivery Performance of E-commerce - Essay Example

Delivery performance of e-commerce (E-bay and Amazon) One of the key necessities of a successful e-commerce application is apt and on-time delivery performance. Although, environmental uncertainty could negatively influence the delivery performance of the e-commerce initiatives, the duty of the companies is to minimize these uncertainties as much as possible. Some of the prominent e-commerce companies are able to do this and this is making them successful, and the one company which is in the top of the list is Amazon. Amazon.com offers services for three customer sets, consumer customers, seller customers and developer customers through retail websites. To deliver aptly to all these customer sets, Amazon has put in place the largest warehouse and distribution systems for a e-commerce company in the world. Utilizing this extensive and efficient system, Amazon has bee able to improve its delivery performance optimally, even becoming a role model for other companies. “In the US, more and more traditional retailers are seeking to compete with the efficiency and shipping speed of online.” (Virtual Strategy 2011). E-Bay, which facilitates transactions between sellers and buyers of wide range of products, also exhibit good delivery performance, but not up to the levels of Amazon. However, lately it is trying to improve its delivery performance by adopting various measures. For example, for the sellers, who have optimum delivery performance or times, it offers financial discounts and better placements for their products. In addition, it also added shipment tracking codes, so as to prove that they have shipped the products on time. This way, e-Bay could match Amazon in delivery performance. "This is part of the whole picture of [eBay] getting more involved and more controlled like Amazon," (trendbird.biz). 2. B2B and B2C It becomes clear that the World Wide Web, unconstrained by the geographical territories and boundaries, allows the businesses to operate in a truly globalized scale. A business which not only takes orders for products online from its merchants or suppliers or the direct consumer customers, but also completes the transaction is a true example of B2B and B2C commerce. Business-to-business or “B2B” for short, is a term which is commonly used to explain the electronic form of business transactions that takes place between businesses (with minimum role for customers). B2B commerce website will serve as channels that will permit coordination between different businesses and outsourcing companies. Thus, the companies adopting this form or e-commerce will have online outlets, and through which they will prefer to deal with other companies only to sell their products and services, instead of directly offering it to the consumers. On the other hand, companies adopting Business to Consumer, or B2C for short, will put in place online portals, which offer products and services directly to the consumers. Many companies or retailers or online retailers all adopt this method, as they reach the product directly to the customer through their own network of supply chain and distribution centers. “B2C has grown to include services such as online banking, travel services, online auctions, health information and real estate sites” (Bajaj and Nag 2005). Apart from the basic difference in ‘end users’, the difference between B2B and B2C is B2B involves more long-term relationship than B2C, which is maximally one-off. That is, in the case of B2C, after the transaction is over, there may not be continual relationship, however in the case of B2B, the transactions and relationship could continue for a longer time, if everything works out well. 3. Buy-side and Sell-side As stated by Chaffey (2002), “when evaluating the impact of e-commerce on an organisation, it is Instructive to identify opportunities; for buy-side and sell-side transactions". Only if those opportunities and the related challenges are identified, organizations can optimally tune its strategies and its organizational processes. Organizations offering products can initiate its manufacturing process, only if it has its adequate supply of resources or raw materials, sourced from various locations. These locations will be selected based on based on factors, like transportation, financial expenses, etc. On the other hand, sell-side involves all the transactions that will be involved in selling products to an organisation's customer. Organizations after sourcing raw materials from various locations, could manufacture the product in its location, and then reach the customers at particular locations of retail shops, and in the case of e-commerce to their doorsteps. When focused exclusively from e-commerce perspective, in the Buy-side operations, the resources can be sourced through Electronic auction. Organizations will only follow B2B e-commerce in the buy-side, and will purchase the needed resources after viewing just the electronic or web catalogues, even avoiding physical inspection of the product. The transportation of resources to the organizations, they can be tracked through technologies like RFID. In addition, the supplier performance needs to analyzed, and for that relevant data need to be collected. In the sell-side operations, as the customers are the key, their buying behavior, internet affinity and business related information or intelligence has to be studied. Specifically in the case of e-commerce websites, companies will sell customized products. That is, the customer can customize or configure and then buy the product or services. 4. Each application Supply chain system needs to be run continuously, without any break. If there is a break there, other process including the buy-side and sell-side could be blocked. In that case, the manufacturing process could be stalled and also the end consumer may not get the product in time. E-procurement helps the procurement or purchasing activities and is used to manage upstream relationship with suppliers. In the buy-side, the organizations will source the product from the raw materials’ supplier by placing the order through internet, and even tracking them on the net. By attaching RFID tags on the materials and products or even in the automobiles, which will carry those products, it can be effectively tracked in the jigsaw of supply chain. Inventory management has been the key to achieve supply chain management, and to do that wireless devices including RFID are being used. When there are imbalances in the inventories, these devices can be used to identify it in-place and also send the needed enquires. The driving force behind CBFR is the perceived potential to network all parties involved with the marketing, distribution, consumption and servicing of the products and services, which will significantly improve the co-ordination and efficiency of operations. The same process can also be used during Research and Development. When an organization utilizes external units to research and develop its product, then also, technologies can be optimally used to coordinate and cooperate. There are many softwares and hardwares, which can have applications in the logistics, and an organized use of these IT tools constitutes E-logistics. Global supply chains need to have safety alternatives incorporated into it to face any eventualities and that constitutes supply webs. Producers will be forced by natural and political factors to incorporate supply webs. 5. Intranet, Extranet and Internet The rapid developments that are visible in the IT field, has given rise to extensive applications in various fields including supply chain management and other e-commerce initiatives. Apart from the various hardware and software applications, creation of virtual worlds and virtual connections in the form of intranet, extranet and internet are helping organizations in various spheres of their functioning. Intranet is the forerunner to the present day Internet. Intranet is a network that is internal to the organization, and will be accessed by personnel within the organization only, as outsider access will be, with protection through the use of firewalls. “An intranet is a private network that is contained within an enterprise. It may consist of many interlinked local area networks... The main purpose of an intranet is to share company information and computing resources among employees.” (Kudyba and Diwan 2002). This network will be useful for the employees and the management team to communicate and coordinate regarding various work processes. Extranet on the other hand, will include few more ‘participants’ to use and access the IT infrastructure. That is, Extranet will allow external players like suppliers, warehouses, logistics companies to access and utilize company related process. For example, British Airways supports a dedicated extranet site for the travel trade that provides information on all British Airways products and services, including any promotional offers to travel agents, tour promoters, etc. These two are mainly organization with organization network, with minimum space for customer interaction. It is internet, which can provide that option to the customer, as internet with its information and interactive features provide customers wide range of benefits. E-Business Web or Internet, one of the most powerful invisible forces of this world, is dominating the human life in every sphere and business is no exception, leading to the development of e-business. In fact business on the internet has come a long way since the time just about a decade ago when many marketing experts considered internet as an advertising channel, a public relation tool, a means for running contests and sales promotion or as support for personal sales efforts (Dekimpe, Geskens and Gielens 2001). In the current times, maximal organizations are having online presence or trying to have online presence in one way or other. Apart from having official websites, to running their entire operations through IT infrastructure to being featured in online directories, businesses are incorporating e-business norms or process in some aspect. E-business has become a standard for operational procedure for the vast majority of companies. Now, customers want to access the products and services online on a 24/7 basis and the most convenient way to provide that, is by moving the operations online. This way, an organization’s marketing processes are carried through various IT tools or as part of e-business. This way marketing cost are reduced, as printing or distributing or broadcasting marketing campaigns or materials will lead to extra costs, while marketing done as part of e-business could reduce it sizably. With ‘virtual billboards’ or webpages running into billions, it gives apt canvas to advertise and market optimally. Likewise, costs incurred in supply chain can also be reduced through e-business process. As Supply Chain system transforms natural resources or raw materials into finished products with the aid of people and importantly technology, it has many applications. By checking the inventories and thereby sending the needed enquiries or orders to the relevant suppliers, there will continual functioning. In addition, as discussed above, e-business process will also include tracking of the raw materials or finished products in the maze of supply chain. Importantly a transaction under e-business can be considered complete, unless it reaches the intended customer with top quality and well within the informed time. The businesses that provide the most reliable, most functional, most user friendly and importantly faster services will be the ones that succeed. All these will lead to increased sales of product or services, and it will give rise to increased revenues from new customers and new markets, as well as existing customers, who will do the repeat selling. When these things work out favorably, the brand image of the organization or product or service could get accentuated further. When an organization successfully provides quality products within the set deadline, then its brand image regarding this part of e-business will get developed, leading to better brand and corporate image. From the customer perspective also, this e-business processes will be beneficial. It helps the customers to input their wants and necessities regarding products and services, as well as get information regarding products and services. After this process is carried out, products are made to reach the customers at a faster rate. Another key part of e-business is providing options for the customers to give their feedback for the products or services utilized. References Bajaj, KK and Nag, D 2005, E-Commerce, Tata McGraw-Hill Education, New Delhi. Chaffrey, D 2008, Internet Marketing: Strategy, Implementation And Practice, Pearson Education, London. Dekimpe, M., Geskens, I., Gielens, K. 2001, The market valuation of internet channel additions’, Tilburg University, University of Leuven, Tilburg/Leuven, working paper. Kudyba, S and Diwan, RK 2002, Information technology, corporate productivity, and the new economy, Greenwood Publishing Group trendbird.biz, EBay's Last-Minute Delivery Push, viewed on April 20, 2011 http://www.trendbird.biz/3350 Virtual Strategy 2011, Reportlinker Adds Global E-Commerce Delivery Report 2011, viewed on April 20, 2011 http://www.virtual-strategy.com/2011/04/12/reportlinker-adds-global-e-commerce- delivery-report-2011 Read More