Definition of 'Electronic Commerce - ecommerce' A type of business model, or segment of a larger business model, that enables a firm or individual

to conduct business over an electronic network, typically the internet. Electronic commerce operates in all four of the major market segments: business to business, business to consumer, consumer to consumer and consumer to business. It can be thought of as a more advanced form of mail-order purchasing through a catalog. Almost any product or service can be offered via ecommerce, from books and music to financial services and plane tickets. Also sometimes written as "e-commerce" or "eCommerce". Ecommerce has allowed firms to establish a market presence, or to enhance an existing market position, by providing a cheaper and more efficient distribution chain for their products or services. One example of a firm that has successfully used ecommerce is Target. This mass retailer not only has physical stores, but also has an online store where the customer can buy everything from clothes to coffee makers to action figures.

When you purchase a good or service online, you are participating in ecommerce. Some advantages of ecommerce for consumers are: - Convenience. Ecommerce can take place 24 hours a day, seven days a week. - Selection. Many stores offer a wider array of products online than they do in their brick-andmortar counterparts. And stores that exist only online may offer consumers a selection of goods that they otherwise could not access. But ecommerce also has its disadvantages for consumers: - Limited customer service. If you want to buy a computer and youre shopping online, there is no employee you can talk to about which computer would best meet your needs. - No instant gratification. When you buy something online, you have to wait for it to be shipped to your home or office. - No ability to touch and see a product. Online images dont always tell the whole story about an item. Ecommerce transactions can be dissatisfying when the product the consumer receives is different than expected.
Purchasing is among the most important activities in supply chain management, since it is the primary point of contact with most supply-chain partners. A major area in purchasing

management is that of Supplier Selection Problem (sometimes called the Vendor Selection Problem). Research in this domain started in the early 1960s and over 175 studies have attempted to address this highly critical issue of procurement management. Vendor selection criteria and methods have reportedly been the highest area of interest in operations management research. A wide variety of selection criteria have been used in different studies for the evaluation of suppliers which have varied due to the differences in requirements in different industries and also often had been purely firm specific. Typically the variety of supplier selection criteria that has been used has exceeded 50 criteria in over 65 research papers working on finding new criteria for evaluation of suppliers. These criteria have been enlisted in the matrix shown below.

Some of the most popular criteria in supplier selection which has been used in over 10 research papers and have also been widely cited are relative price, compliance with the delivery schedule, quality of the delivered goods to specifications, production capabilities of the supplier, geographic distance (of the warehouse), technical capability of the supplier, management capability of the supplier and financial position of the supplier. All these supplier evaluation criteria have found massive application in the studies in this

domain and are marked by subtle differences in terms of relative importance, as perceived by senior procurement practitioners. Similarly another area of keen interest is the models which has been used to provide decision support to the supplier selection problem. Over 35 different mathematical models have been used for providing decision support to this extremely critical issue of procurement management. A study by Ho, Xu and Dey (2010) reveals that the Analytic Hierarchy Process, Mathematical Programming and Data Envelopment Analysis are the top 3 modeling paradigms used to provide decision support in supplier selection problems. Many other novel techniques like multi-attribute-deterministic models; mixed mathematical programming, outranking techniques; weighted sum of products; interpretive structural modeling; fuzzy set theory, neural networks; intelligent agent based techniques; TOPSIS, fuzzy multi-attribute frameworks; rule based reasoning models and multi-objective programming models have also been used. Typically the evolution of supplier selection models have been as described pictorially below, due to the evolution of the nature of selection criteria, from quantitative to a mix of quantitative and qualitative criteria.

As the trend highlights, there is a paradigm shift in the nature of the mathematical models used for supplier selection with a change in the requirements in the nature of business, mostly in the manufacturing industries and the maturity of the discipline. No wonder the area has attracted so much of attention to the consulting practitioners and theory developers in academia alike.

Do mail me if you have any queries regarding this post. The content in this article is an original piece of research made to further the purpose of education only. You may NOT copy, distribute and transmit the work for any purpose without the express written permission of the author. Neither you may alter, transform, or build upon this work without express written permission from the author (arpan.kumar.kar@gmail.com).