1. Electronic Commerce, Seventh Annual Edition1 Purchasing, Logistics, and Support Purchasing activities  Include identifying vendors, evaluating vendors, selecting specific products, and placing orders Supply chain  Part of an industry value chain that precedes a particular strategic business unit

2. Electronic Commerce, Seventh Annual Edition2 E-procurement or e-sourcing  Use of Internet technologies in procurement and sourcing activities

3. Electronic Commerce, Seventh Annual Edition3 Direct materials Replenishment purchasing Indirect materials

4. Electronic Commerce, Seventh Annual Edition4 Logistics Activities Objective of logistics  right goods in the right quantities in the right place at the right time include managing:  Inbound  Outbound

5. Electronic Commerce, Seventh Annual Edition5 Electronic Data Interchange EDI is the computer-to-computer transfer of business information between two businesses Usually specific agreed formats Commonly transaction data

6. Electronic Commerce, Seventh Annual Edition6 Emergence of Broader EDI Standards (transaction sets) Late 2000  ASC X12 organization and UN/EDIFACT develop one common set of international standards

7. Electronic Commerce, Seventh Annual Edition7 Value-Added Networks Direct connection EDI  own on-site EDI translator computer  connected directly to each other dedicated leased lines

8. Electronic Commerce, Seventh Annual Edition8 Value-Added Networks Indirect connection EDI Use Value Added Networks (VAN) as electronic middleman

9. Electronic Commerce, Seventh Annual Edition9 Advantages of Using a VAN Users need to support only the VAN’s one communications protocol The VAN:  Records message activity in an audit log  Can provide translation between different transaction sets used by trading partners  Can perform automatic compliance checking

10. Electronic Commerce, Seventh Annual Edition10 Disadvantages of Using a VAN Cost  enrollment fee, a monthly maintenance fee, transaction fee Different companies use different VAN’s

11. Electronic Commerce, Seventh Annual Edition11 EDI on the Internet Initial roadblocks  security  inability to provide audit logs and third- party verification of message transmission and delivery Nonrepudiation  Ability to establish that a particular transaction actually occurred

12. Electronic Commerce, Seventh Annual Edition12

13. Electronic Commerce, Seventh Annual Edition13 Electronic Marketplaces and Portals Vertical portals (vortals)  Offer a doorway (or portal) to the Internet for industry members  Vertically integrated

14. Electronic Commerce, Seventh Annual Edition14 IndustryPortals

15. Electronic Commerce, Seventh Annual Edition15 Private Company Marketplaces E-procurement software  purchasing function through Web interface Private company marketplace  provides auctions, request for quote postings, and other features

16. Electronic Commerce, Seventh Annual Edition16

17. Electronic Commerce, Seventh Annual Edition17 Industry Consortia-Sponsored Marketplaces  Created in 2000 by a consortium of DaimlerChrysler, Ford, and General Motors

18. Electronic Commerce, Seventh Annual Edition18 Industry Consortia-Sponsored Marketplaces Marriott, Hyatt, and three other major hotel chains formed a consortium to create Avendra

19. Electronic Commerce, Seventh Annual Edition19