| |
| |
|
Ecommerce Information |
|
|
|
Doing Business Online - Private B2B Exchanges
Business processes are the building blocks of an enterprise. If one of these processes fails to live up to its expectation, business starts to flounder. How to minimize the risks, get a better monitoring of the processes and, at the same time, reduce costs involved? The answer is - business process automation. Although, automated business processes based on online technologies can create incredible value to existing business, many companies are slow to adopt technological innovations and reap benefits from them. However, lately, things have started to change! According to a recent poll conducted among mid size companies shows 52 percent of respondents plan to spend over a million dollar on business process automation. Large companies - early adopters of online business processes - have been immensely profiting from the value created by process automation. Intel recently announced that it saved one billion dollar last year alone thanks to online business process management. In broader sense, business process management technology delivers solutions to understand, analyze and simulate business process models. Companies adopt this technology to streamline their business operations, lower overhead expenses, reduce maverick buying, reduce paper-based - mistake prone - transactions and get better control. The ultimate goal is to make the corporation a fully process-managed enterprise, transformed through strategy, design, realization and actual operations. Companies require streamlining their business processes to help solve various crucial but specific problems, such as:
Although, business processes are wide in range; and there are many complex issues that require meticulous work, automation of some basic processes may bring notable result for virtually any company. These processes include supply chain, procurement, logistics, inventory control, etc. By adopting an online business to business exchange companies can streamline most of these business processes bringing added value to their operations. A B2B exchange is a unified online platform, where buyers and sellers login to communicate, collaborate and make business transactions. A private B2B exchange, mostly, consolidates suppliers and buyers of a specific company, which owns and operates the exchange. There are two ways of integrating B2B exchange to automate business processes. A company can participate in existing B2B exchange or create its own private exchange. While for small companies, it is more viable to participate in a major B2B exchange that has required components, larger companies should consider creating their own B2B exchange. The profits companies can reap from joining an existing B2B exchange or creating their own private one could be enormous. Customer Base Development A supplier, once registers with a B2B exchange, gets immediate access to a large community of prospective buyers of his products or services. Increase Revenue from Existing Customers Business process automation allows companies develop products faster, buyers get faster and easier access to product information, receive quicker response to their requests, get better customer support and may buy products online. These turn into more sales. Add Profit from Value Added Services Once the exchange is set as primary sales channel, available free resources can be used to create more value added services for clients. Some of the services that the exchange may offer also can be used to generate more value. Reduce Order Processing Cost The supply chain solutions of a B2B exchange may allow sellers to reduce order processing cost significantly. Studies show that cost of processing a purchase order can be reduced from US$ 70 down to US$ 6 only. Sales and support costs By automating sales and customer support processes companies can reduce over head costs over 25-30% easily. Inventory keeping costs Clearer visibility and forecasting ability allow companies considerably reduce inventory keeping costs. Since an existing B2B exchange may not have all the necessary features and functions, a good option is to build a private exchange based on one's own specific business process automation need. This exchange, at its minimum, should be able to cover major portion of supply chain and inventory control. The following elements should be integrated to create substantial value to a private B2B exchange: Supply Chain Management Supply chain management is the core solution of an exchange and can deliver great values to existing systems. Implementation of this solution will help achieve incredibly high return on investment. Business process automation in this component of the exchange includes both supplier and buyer-side quotation, requisition, purchase order and invoice. Marketplace This is the venue where the exchange owner company will post their products for sale. A shopping cart should be integrated to the electronic marketplace in order to automate the buying process. The offered-for-sale products will be directly related to inventory control management component of the exchange. Auction Electronic auction system can use both English and Dutch auction methods. For convenience the auction component can be integrated to the electronic marketplace. Online auction helps liquidate surplus goods easily. Reverse Auction This solution allows automate electronic procurement, where suppliers compete for a business deal real time online. Members Storefront The participants of the Private Exchange - both buyers and sellers of the exchange owner company get a Storefront that reflects profile of the company, their products and other information. Forum A Forum or Discussion Board is an organized, on-line interactive message board where participants conduct discussion on a set of topics by posting questions, comments and responses. Directory of Companies This is a listing of all registered participants - buyers and sellers of the exchange owner company - either by business category or by alphabetical order. An advanced search engine tool can be incorporated in order to find a company based on data provided. E-catalog E-catalog is a hierarchy of product and service categories. All products and services handled by the exchange owner company should be consolidated in the catalog. Private B2B exchange is a powerful concept, which engulfs a fairly big portion of business processes requiring automation. This is more like a business ecosystem that has an ability to change the way companies think and do business and create tremendous value to their owners. Nowshade Kabir is the founder, primary developer and present CEO of Rusbiz.com. A Ph. D. in Information Technology, he has wide experience in Business Consulting, International Trade and Web Marketing. Rusbiz is a Global B2B Emarketplace with solutions to start and run online business. You can contact him at mailto:nowshade[at]rusbiz.com, http://ezine.rusbiz.com/newsletters/newsletter31.htm
MORE RESOURCES:
Ecommerce - Google News |
|
|
|
RELATED ARTICLES
E-marketplaces from Sellers Perspective What is an E-marketplace anyway?E-marketplace is a business to business web based venue, where buyers and sellers meet online, generate business leads and conduct business transactions. The e-marketplace features are tailored in a manner so that a large numbers of buyers and suppliers can be serviced as a community. Merchant Account Insider Secrets - Accept Credit Cards Online The process of learning how to accept payments on the Internet is similar to the course of figuring out how to launch a business. What at first seems puzzling and intimidating may be viewed as straightforward and easy to understand if one has the right guide or manual. Is Your Website Credit Card Friendly? In my last column I discussed the process of credit card enabling your brick-and-mortar business. I pointed out that research has shown that accepting credit cards can help increase revenue and enhance cash flow. Overcoming Frustration with Technology For whatever reason, when we get a new boost in productivity, whether that be from a tool, technology or technique.. Shopping from Your Cell Phone with Froogle Wireless Many surfers already know about Froogle, Google's shopping portal that is still in beta testing. Google has now expanded their Froogle service so that it is available on WML-enabled cellular phones. Online Business- What Makes It a Success! Only a few manage to sell everything under the sun over the internet. There are billions of web sites running online business, trying to outdo each other by various means. How Measuring Key Performance Indicators Can Improve E-Commerce Strategy - Part Two Why time spent on your site is importantAll websites regardless of type should measure this KPI, simply because all websites can use it as a gauge to see how compelling their offers are as well as check web site performance. It doesn't matter whether you're running a content portal or an e-commerce sales operation, time spent on your pages is an important metric to measure. Bringing the World to Your Door According to Internet.com, by the year 2008 nearly 30% of offline purchases will be influenced by online research. How To Turn Any Product You Sell In To Residual Income The concept of this is for you to offer a subscription type product as an upsell or backend product. For example, if you're selling an ebook for $37 offer a subscription to a related e-zine for $9. How e-business and e-Marketing are Changing Internet now days became a real marketplace and many many companies using Internet as a online Selling and Customer Care or Support Tool for their Products and Services.Companies using e-Marketing, Search Engines Optimizations, e-mail eMarketing, Opt-In emailing Lists, Web Sites, Online Website Promotions, Backlinks Increasing, Link Building, Online Stores, Data Feeds, RSS Feeds, RSS Submissions, Business to Business (b2b) Exchange, Sales Force Automation Solution Software's, Online Live Customer Care or Live Support etc. 5 Powerful Ways to Make Money Online with a Website There are many ways to make money online and the best way for you is to simply be creative with your skills, knowledge, and abilities. However, the following five options are powerful ways to make money online with a website and definite something you should consider. Six Components Of A Good E-Commerce Site Businesses, which are still sitting on sidelines and not doing business on the Internet, should think seriously about their position! If you are one of them, chances are there, that you have to pay dearly for your indecision as you might lose significant market share to your more proactive competitors in a very short period of time.Apart from the fact that e-commerce is growing at the rate of more than 25 percent a year, the use of online features can bring efficiency to virtually every aspect of business process, be it supply chain management or customer support management. Online Shoppers Say They'll Buy from Small and Large E-Businesses Alike As the holiday shopping season begins in earnest, consumers say they're just as willing to buy from small online retailers as they are from large, national e-commerce providers.In addition to this key finding, a new national survey of 2,500 consumers discovered extremely high levels of consumer participation in - and satisfaction with - shopping on the Internet, despite continuing concerns for security and privacy. Getting Started: Creating a Business Plan You're excited. You have a great idea for a profitable online business. Start doing online business using B2B Portals in Six Steps I registered with a B2B site but what's next?This is a question many first time users of B2B marketplaces ask themselves. A few expect that the registration itself will bring them a number of new customers. Short Story: The Benefits of Shopping Online Maria's new lifestyle: Short story about the benefits shopping on the Net has given to a dedicated artist.I've got this strange friend; her name is Maria. A Beginners Guide To Setting Up A Successful Online Store A beginner's guide to setting up a successful online store Online selling is by no means a simple task. To sell products online not only requires making use of high end marketing strategies but also involves lots of planning. Online Florists - Send Flowers Online When Youre In a Hurry You did it again, didn't you? Forgot until the last minute that birthday, anniversary, graduation, promotion, or fill-in-the-blank-here. No fear, online florists are here. How to Boost Conversion Rates, While Lowering Merchant Account Fees! Using an Address Verification System (AVS) when processing your online credit card transactions can help to reduce the number of fraudulent transactions you receive. However, most online merchants don't know that using AVS can also reduce your number of legitimate orders. Government Buying and Selling on the Internet Global Insight, a leading economic and financial forecasting company, (formerly DRI-WEFA), states that all levels of government (federal, state, and local) should see steady increases in the purchases of goods and services through the year 2009.Vendors willing to make the commitment to sell to government can reap the benefits of this projected government spending.
|
| home | site map |
| © 2006 |