How e-commerce reduces time cycle time, improve employee’s empowerment and facilitate customer support.
How e-commerce helps suppliers and customers?
Through e-commerce, customer may able to communicate with supplier through the supplier’s web site and do a stock order online. Let’s say, the customer wants to buy a laptop, he can surf online to dell web site to order or to customize the laptop according to his preferences. After finish customization, the product will finish as soon as possible and all the customer needs to do is prepare enough cash to buy it or even use credit cards.
With e-commerce, customer direct communicate with supplier and all the middle man or retailer are completely eliminated which called disintermediation. With this, customer can purchase at a cheaper price and supplier can earn more than sell to retailer which is B2B, business to business.
Another how e-commerce helps supplier is create a communication system between suppliers and manufacturer. Example is supplyworks. SupplyWorks has one focus – to help manufacturers profitably satisfy customer demand by optimizing direct materials procurement and replenishment.
Today's manufacturers face competition on a global scale, along with continuous customer demands for lower prices, higher quality, and greater responsiveness. In answer to these pressures, the trend has been to source a larger and larger proportion of content from third-parties. But as suppliers become the critical link in profitably satisfying customer demand, manufacturers are faced with the challenge of efficiently managing the global procurement and replenishment of thousands of different parts and materials from hundreds or even thousands of suppliers.
SupplyWorks MAX On-Demand was designed specifically to meet this challenge by enabling manufacturers to communicate and collaborate more efficiently with suppliers, to respond more quickly to changes in customer demand, and to optimize the flow of parts and materials in lean and demand-driven supply chains. By understanding and supporting the needs of both buyer and supplier, SupplyWorks is helping today’s leading manufacturers to achieve measurable financial benefits by dramatically improving their supply network performance.
SupplyWorks MAX is a complete Web-based On-Demand suite for the procurement and replenishment of direct materials. It has been designed to help manufacturers achieve several key business objectives:
Reduce raw materials inventory levels without sacrificing responsivenessor creating shortages. By optimizing procurement and replenishment activities, SupplyWorks users have lowered RMI levels by as much as 30% while actually improving customer responsiveness.
Improve supplier visibility to manufacturing requirements and demand fluctuations, thereby reducing the need for expediting as well as helping your suppliers to lower their costs. SupplyWorks users have reduced their expenditures on premium freight by 30% or more and lowered their cost of goods sold.
Respond more quickly to customer demand. By improving demand visibility and supplier collaboration, SupplyWorks MAX has helped our users to achieve as much as a 25% reduction in supplier lead times.
Achieve material sourcing and cost reduction goals. By facilitating enterprise-wide execution against negotiated agreements and quantity discounts, SupplyWorks users convert negotiated and identified savings into actual savings and reduced cost of goods sold.
Thursday, June 12, 2008
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