Businesses make a distinction between direct and indirect materials. Direct materials are those materials that become part of the finished product. Indirect materials are all other materials that the company purchases.
Logistic Activities The classic objective of logistics is to provide the right goods in the right quantities in the right place at the right time.
How can the internet and web improve logistics management Increase alternatives for receiving, warehousing, controlling inventory,& delivery schedules Lower transaction costs Provide constant connectivity between firms engaged in logistic management Delivery of real time shipping info Allowing customers to track info
Training and Knowledge Management One common activity that underlies multiple primary activities is training. Knowledge management is another support activity that intentionally collects, classifies, and disseminates information about a company, its products, and its processes.
E-Government Although governments do not typically sell products or services to customers, they do perform many functions for their stakeholders. Governments also perform business-like activities; for example, they employ people, buy supplies from vendors, and distribute benefit payments of many kinds.
Evolution of e-commerce mechanisms EDI/ERP Sell side Storefront Buy side e-procurement B2B Marketplace
Electronic Data Interchange (EDI) EDI is a computer-to-computer transfer of business information between two businesses that uses a standard format. trading partners. EDI-compatible.
Value-Added Networks EDI reduces paper flow and streamlines the interchange of information among departments within a company and between companies. Trading partners can implement the EDI network and EDI translation processes in several ways use either direct connection or indirect connection.
Is your business suited to an e-marketplace? Who is your target customer? Where are your target customers located? Do your customers buy online? Is your business in an expansion mode? Can your team support e-marketplace efforts? Will e-marketplaces conflict with any other distribution channels?