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Electronic Commerce - Essay Example

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Franke washroom systems can expand markets by applying EC. As E-commerce is based on the Internet, the extent of market reach is global. “Many important response activities can be greatly…
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Electronic Commerce
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Download file to see previous pages Moreover, new sales and distribution channels may appear for Franke thanks to E-commerce.
EC can reduce the cycle time to produce Franke’s washroom products. It can also enhance productivity and lessen the time needed to present the products into the market. The supply chain management of Franke will be effective with minimal delays. Moreover, the company can decrease the inventory and so can lower the cost for the inventory. The costs for administrative tasks and sometimes intermediaries in the supply chain are also reduced.
The organization’s supply chain may be simplified in which the size of the supply chain is reduced. Franke can work more closely with its smaller group of suppliers in a focused supply chain evolved from applying E-commerce. “Tight coupling is a method for ensuring that suppliers precisely deliver the ordered parts, at a specific time and particular location.” (Laudon, 2007) It will enhance Franke’s logistical activities which are very important for the company to provide the right products with right quantities to the right locations at the right time.
In addition to supply chain improvements, the supply chain management system of the organization can also be upgraded. EC makes SCM systems consistently linked the processes of supply chain such as purchasing, producing and distributing products from suppliers to consumers. Franke can integrate the demands for its equipment and enter them into the order entry system. A Franke worker assembles the equipment, packages them, make them tagged using RFID, etc, and then distributes them to the customer. The delivery process is monitored and tracked by Franke’s SCM system to get the latest information of order status.
“Most B2B E-commerce is an adaption of EDI or is based on EDI principles.” (Deitel, Deitel & Nieto, 2001) EDI stands for electronic data interchange and it can minimize the cost, ...Download file to see next pagesRead More
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