E-commerce Operations Management - Essay Example

Since the first trimester of 2001 when the US e-commerce sales were $7931 million the overall sales increase by 242% six years later for a total $27,092 million online sales in the 1st quarter of 2007 (Plunkett Research, 2007). The largest retail firm in the world, Wal-Mart, caught on to this trend early and set up an internal and external ecommerce business infrastructure. This paper discusses e-commerce solution for customers and for internal business transaction by showcasing the capabilities of the multinational firm Wal-Mart Corporation.

An electronic platform that allows business to interact with each other is a business to business network (B2B). A business to business application or e-biz is the exchange of products, information and services among business entities through electronic medium to achieve ecommerce transactions (Searchcio, 2001). The early emphasis of e-commerce was targeting business to customer transaction which has grown tremendously, but B2B have surprisingly become on the biggest forces driving the world ecommerce growth.

B2B is a way to achieve significant savings in supply chain activities such as purchases and sales of product and services to other business partners. One of the simplest ways for other businesses to gain entrance into B2B networks is by utilizing the company home page as a portal for users to access a secured system to perform B2B transactions. Walt-Mart decided five years ago to convert their information system into a full B2B network to achieve greater efficiency in their relationships with suppliers and other vendors.

The move was rapidly accepted by the business who are involve in business with Wal-Mart which enabled Wal-Mart to perform B2B transaction within a one year time span with 98% of its vendors (Zimmerman, 2003). Wal-Mart created its B2B application with the assistance of a software company called Coty. This firm provided the retail giant with the assistance