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E commerce

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This intranet will allow The Enterprise to immediately and conveniently compare performance, tailor strategies specific to each store, and retrieve important information in each store(Duyne et al 2003). Because of these functions and features, the intranet is expected to cut administrative cost and paper works done by the headquarters.The integration of the business organization should allow the company to carry out functions which will enable them to reap economies of scale. Acting as an integrated unit, the retailer can gain advantages in unifying its ordering and delivery processes. In its move of harnessing the full power of e-commerce, business to business model should also be adopted. The Entreprise website then should allow other players in its value chain to take a more active part in the company’s operations (Kotler 2005). Included here are its various suppliers and logistics partners.In the current setting, each of the retail outlets of The Enterprise conducts their separate ordering and logistics functions with the supplier that they prefer. The ordering system is manual and each outlet reaches an average of three days for placing orders, receiving, verifying, and replenishment of stocks (Kotler and Armstrong 2002). Being in the retailing industry, the availability of products in each of the outlet is a very important concern. Stock-out costs are costs associated with a retailer which runs out of stock when a customer intends to purchase them. These costs are not only seen to be in terms of the foregone opportunity to sell to the buyer but also in their loyalty and the image that the retailer will have to a customer.Thus, relationship with suppliers will be an integral part of the e-commerce system which will be installed. In order to save a significant amount of cost, The Enterprise should integrate its ordering and logistics processes. An integrated ordering among all the outlets will be beneficial because it will also strengthen the bargaining power of The Enterprise to its suppliers. As more product purchases are made, the company is seen to be better positioned in asking for discounts and other favors from the supplier (Kotler 2005). Quality is also ensured to be the same in all of each stores as a single supplier is providing the goods that they sell.The website of The Enterprise then is proposed to have a function where suppliers can log-on and look at the inventory needs
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preview essay on E commerce
  • Pages: 10 (2500 words)
  • Document Type: Essay
  • Subject: Unsorted
  • Level: Masters
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