1. E-Commerce ©David Whiteley/McGraw-Hill, 2000 1 Inter-organisational transactions

2. E-Commerce ©David Whiteley/McGraw-Hill, 2000 2 Inter-organisational transactions  ‘Bhs regularly deal with 400 suppliers and place 6,000 contracts per season. For the merchandising systems this can mean 4.5 million replenishment decisions each working week’.

3. E-Commerce ©David Whiteley/McGraw-Hill, 2000 3 Credit transaction trade cycle  Pre-Sales:  Search – find a supplier  Negotiate – agree terms of trade  Execution:  Order (purchasing procedures)  Delivery (match delivery against order)  Settlement:  Invoice (check against delivery)  Payment  After Sales (warrantee, maintenance, etc.)  Repeat – many orders repeat on a daily or weekly basis.

4. E-Commerce ©David Whiteley/McGraw-Hill, 2000 4 Credit transaction trade cycle

5. E-Commerce ©David Whiteley/McGraw-Hill, 2000 5 Credit transaction trade cycle Trade Cycle Document Exchange

6. E-Commerce ©David Whiteley/McGraw-Hill, 2000 6 A variety of transactions  Discrete transactions of commodity items:  Use an Electronic Market (if one is available)  Repeat transactions for commodity items.  EDI may well be appropriate  Discrete transactions of non commodity items.  Internet e-Commerce can be the answer

7. E-Commerce ©David Whiteley/McGraw-Hill, 2000 7 Exercise  Using the Pens and Things case study: Draw a system diagram of Pens and Things using any diagramming convention you deem appropriate (or as directed by the tutor). The diagram to include trade exchanges with customer and supplier organisations.