Electronic Commerce 12th Edition Gary Schneider Solutions Manual 1

Electronic Commerce, Twelfth Edition 5 -1
Electronic Commerce 12th Edition by Gary

Schneider ISBN 1305867815 9781305867819
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Chapter 5
Business-to-Business Activities: Improving Efficiency and
Reducing Costs
At a Glance
Instructor’s Manual Table of Contents

• Introduction
• Learning Objectives
• Teaching Tips
• Quick Quizzes
• Class Discussion Topics
• Additional Projects
• Additional Resources
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except
for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved
learning management system for classroom use.
• Key Terms
Lecture Notes
Introduction
Since the first large companies evolved during the Industrial Revolution, they have sought
ways to cut costs and operate more efficiently by streamlining their internal manufacturing
processes. As more countries around the world developed increasingly reliable
transportation and governmental infrastructures, companies felt more comfortable
contracting with foreign providers for various business functions, despite technological and
cultural differences between countries. One potential source of business service workers
existed (and still exists) in the poorest countries of the world. The lack of infrastructure
(water, electricity, and roads) in less-developed countries often limited the kinds of
business activities in these countries. The Internet, however, has started to change this.
Samasource is a not-for-profit organization that facilitates connections between these

potential workers and work that large high-tech companies need to have done. Samasource
contracts with large companies that have specific business processing needs, such as data
entry, transcriptions, creating captions for images, error-checking information in databases,
translating text, and so on. Samasource then breaks down these projects into small tasks
that workers can perform anywhere in the world, as long as they have an Internet
connection. Samasource has lifted more than 3800 African, Asian, and Haitian workers and
their families above the poverty line by lining up work for them with companies such as
Google, Microsoft, Walmart, and Getty Images and providing the necessary technology and
connectivity resources.
Organizations such as Samasource help businesses in the developed world get tasks
accomplished more cost-effectively. At the same time, they help build worker knowledge
and skills in less developed countries that can help industries grow there. Global industries
see this development of trained workforces that can eventually support manufacturing
industries as a good long-term strategy. The Internet helps bring together work and workers
in a way that does a great deal of good for people in need around the world.
Learning Objectives
In this chapter, your students will learn:
• How businesses use the Internet to improve purchasing, logistics, and other business
process activities
• How the Internet facilitates implementation of outsourcing and offshoring business
strategies
• How electronic data interchange and how it has evolved using Internet technologies
• How businesses have moved some of their electronic data interchange operations to
the Internet
• What supply chain management is and how it uses Internet technologies to improve
efficiency and cooperation in supply chains
• How the various types of online business marketplaces operate to make B2B
transactions easier and more efficient
Teaching Tips
Purchasing, Logistics, and Business Support Processes
1. Introduce the chapter by explaining that students will learn how companies use
electronic commerce to improve their business processes, including purchasing and
logistics primary activities and all of the processes relating to their support activities
(which include finance and administration, human resources, and technology
development).
2. Refer to Figure 1-9 in Chapter 1 for a review of primary activities and support activities.
3. Note that although the work might not seem as creative as designing a Web site or
developing an advertising campaign, the potential impact of cost reductions and
business process improvements in purchasing, logistics, and support activities is
tremendous.
Outsourcing and Offshoring
1. Explain why an important characteristic of purchasing, logistics, and support activities

is flexibility.
2. Introduce the terms outsourcing, offshoring, business process offshoring, and impact
sourcing/smart sourcing.
Purchasing Activities
1. Explain that purchasing activities include identifying and evaluating vendors, selecting
specific products, placing orders, and resolving any issues that arise after receiving the
ordered goods or services.
2. Remind students that companies can organize their strategic business unit activities
using an industry value chain.
3. Introduce the term supply chain.
4. Discuss the Purchasing Department’s role within the supply chain. Note that the
Purchasing Department within most companies traditionally has been charged with
buying all product or service components at the lowest price possible.
5. Mention that another term used to describe procurement activities is supply

management.
6. Introduce the terms sourcing and e-sourcing.
7. Refer to Figure 5-1 to illustrate the steps in a typical business purchasing process.
8. Introduce the term spend.
Direct vs. Indirect Materials Purchasing
1. Discuss the concept of direct vs. indirect materials purchasing.
2. Introduce the term direct materials.
3. Review the two types of direct materials purchasing: replenishment purchasing

(contract purchasing) and spot purchasing. Introduce the term spot market.
4. Discuss indirect materials (maintenance, repair, and operating (MRO) supplies) and
purchasing cards (p-cards).
Logistics Activities
1. Note that businesses need to ensure that the products they sell to customers are
delivered on time and that the raw materials they buy from vendors and use to create
their products arrive when needed.
2. Point out that logistics activities include managing the inbound movements of materials
and supplies and the outbound movements of finished goods and services.
3. Introduce the term third-party logistics (3PL) provider.
4. Note that the marriage of GPS and portable computers with the Internet was an
excellent example of second-wave electronic commerce. The addition of mobile device
technologies to the mix is an example of third-wave electronic commerce.
Business Process Support Activities
1. Explain that support activities include the general categories of finance and
administration, human resources, and technology development.
2. Refer to Figure 5-2 to summarize categories of support activities.
3. Introduce the term knowledge management.
4. Note that a common support activity that underlies multiple primary activities is
training.
E-Government
1. Define the term e-government.
2. Refer to Figure 5-3 to illustrate the state of California’s one-stop portal site.
3. Explain that the most common services offered by states and similar regional
government. They are: access to the text of state laws and regulations, renewal of
licenses, promotion of the state to businesses considering new locations, job listings,
promotion of tourism in the state, tax forms and filing information, and information for
companies that want to do business with the state.
Network Model of Economic Organization in Purchasing: Supply Webs
1. Emphasize that the need for clarity in purchasing, logistics, and support activities has
led to a shift away from hierarchical structures toward network structures.
2. Emphasize that some researchers who study the interaction of firms within an industry
value chain are beginning to use the term supply web instead of “supply chain.” Many
industry value chains no longer consist of a single sequence of companies linked in a
single line, but include many parallel lines that are interconnected in a web or network
configuration made up of strategic alliances or complex configurations of outsourcing
contracts.
Quick Quiz 1
1. The part of an industry value chain that precedes a particular strategic business unit is
called that business unit’s ____.
Answer: supply chain
2. The total dollar amount of the goods and services that a company buys during a year is
called its ____.
Answer: spend
3. ____ are those materials that become part of the finished product in a manufacturing
process.
Answer: Direct materials
4. ____ is the intentional collection, classification, and dissemination of information about

a company, its products, and its processes.
Answer: Knowledge management
Electronic Data Interchange

1. Introduce the term EDI compatible.
2. Emphasize that understanding EDI is important because most B2B electronic commerce
is based on EDI or adapted from EDI. It is also important because EDI is still the single
most commonly used technology in online B2B transactions.
Teaching To learn more about EDI, see: http://www.covalentworks.com/what-is-edi.asp

Tip
Early Business Information Interchange Efforts
1. Note that in 1968, a number of freight and shipping companies joined together to attack
their collective paperwork burden. They created a standardized information set that
included all the data elements that shippers commonly included on bills of lading,
freight invoices, shipping manifests, and other paper forms.
2. Point out that although these industry-specific data interchange standards were helpful;
their benefits were limited to members of the standard-setting groups in those specific
industries.
3. Emphasize that full realization of economies and efficiencies required standards that
could be used by companies in all industries.
Emergence of Broader Standards: The Birth of EDI
1. The American National Standards Institute (ANSI) has been the coordinating body
for standards in the United States since 1918. Note that ANSI does not set standards
itself. Instead, it maintains procedures for the development of national standards and it
accredits committees that follow those procedures.
2. Provide a historical outline of efforts to develop uniform EDI standards.
• In 1979, ANSI chartered the Accredited Standards Committee X12 (ASC X12).
• The ASC X12 standard currently includes specifications for several hundred
transaction sets, which are the names of the formats for specific business data
interchanges.
• In 1987, the United Nations published its first standards under the title EDI for
Administration, Commerce, and Transport (EDIFACT, or UN/EDIFACT).
• Though attempts have been made to develop a single common set of international
standards, these attempts have never succeeded.
3. Refer to Figure 5-4 to illustrate some of the more commonly used transaction sets,
showing the paper document from which the transaction set was devised along with the
identifiers of the ASC X12 and the UN/EDIFACT versions of the transaction set.
Teaching To learn more about ANSI, see: http://www.ansi.org/

Tip
How EDI Works
1. Point out that although the basic idea behind EDI is straightforward, its implementation
can be complicated, even in relatively simplistic business scenarios.
Paper-Based Purchasing Process and EDI Purchasing Process
1. With the paper-based purchasing process information transfer between the buyer and
vendor is paper based and can be delivered by mail, courier, or fax. Refer to Figure 5-5.
2. The information flows that occur in the EDI version of a sample purchasing process are
shown in Figure 5-6.
3. Compare the paper-based purchasing process in Figure 5-5 to the EDI purchasing process
in Figure 5-6.
• The departments are exchanging the same messages among themselves, but EDI
reduces paper flow and streamlines the interchange of information among
departments within a company and between companies.
• The paper-based system has 16 individual steps compared to the eight steps required
to complete this transaction using EDI.
• The three key elements (shown in Figure 5-6) that alter the process so dramatically
are the EDI network (instead of the mail service) that connects the two companies
and the two EDI translator computers that handle the conversion of data from the
formats used internally by the buyer and the vendor to standard EDI transaction sets.
Value-Added Networks
1. Explain that trading partners can implement the EDI network and EDI translation
processes in several ways. Each of these ways uses one of two basic approaches: direct
connection or indirect connection.
2. Introduce the term direct connection EDI. Refer to Figure 5-7 as an example.
3. Introduce the term indirect connection EDI. Refer to Figure 5-8 as an example.
4. Introduce the following terms: nonrepudiation, Internet EDI/Web EDI/open EDI,

EDIINT (Electronic Data Interchange-Internet Integration)/EDI-INT, AS2
(Applicability Statement 2), and AS3 (Applicability Statement 3).
EDI Payments
1. Reintroduce the term electronic funds transfers (EFTs).
2. Explain that when EFTs involve two banks, they are executed using an automated
clearing house (ACH) system which is a service that banks use to manage their
accounts with each other.
Quick Quiz 2
1. The ____ has been the coordinating body for standards in the United States since 1918.
Answer: American National Standards Institute (ANSI)
2. (True or False) ANSI does not set standards itself, but maintains procedures for the
development of national standards and it accredits committees that follow those
procedures.
Answer: True
3. ____ is the ability to establish that a particular transaction actually occurred.

Answer: Nonrepudiation
4. When EFTs involve two banks, they are executed using a(n) ____ system, which is a
service that banks use to manage their accounts with each other.
Answer: automated clearing house (ACH)
Supply Chain Management Using Internet Technologies

1. Define the term supply chain management.
2. Note that the ultimate goal of supply chain management is to achieve a higher-quality or
lower-cost product at the end of the chain.
Value Creation in the Supply Chain
1. Today, supply chain management is used to add value in the form of benefits to the
ultimate consumer at the end of the supply chain.
2. Introduce the terms supply-chain competition, just-in-time inventory management,

lean production, tier-one suppliers, tier-two suppliers, tier-three suppliers, and
supply alliances.
3. Note that a key element in the coordination of supply chain activities is the
establishment of a consistent production strategy that is adopted by all supply chain
participants. Introduce the term production strategy.
4. Emphasize that clear communications, and quick responses to those communications,

are key elements of successful supply chain management. Technologies, and especially
the technologies of the Internet and the Web, can be very effective communications
enhancers.
5. Introduce the term adaptive supply chain.
6. Refer to Figure 5-9 to illustrate the advantages of using Internet technologies in supply
chain management.
Increasing Supply Chain Efficiency and Cooperation
1. Explain how many companies are using Internet and Web technologies to manage
supply chains in ways that yield increases in efficiency throughout the chain. These
companies have found ways to increase process speed, reduce costs, and increase
manufacturing flexibility so that they can respond to changes in the quantity and nature
of ultimate consumer demand.
2. Introduce the term collaborative commerce.
Materials-Tracking Technologies
1. Note that companies have been using optical scanners and bar codes for many years to
help track the movement of materials. In many industries, the integration of bar coding
and EDI has become prevalent.
2. Refer to Figure 5-10 as an example of a typical bar-coded shipping label that is used in
the auto industry.
3. Introduce the terms real-time location systems (RTLS), Radio Frequency

Identification Devices (RFIDs), active RFIDs and passive RFIDs.
4. Discuss the concept of a stockout.
5. Explain that many industry observers have concluded that general acceptance of
product-level RDIF tagging will become widespread in retailing starting in 2017 with
many retailers projecting full RRID reading capabilities in all of their locations by then.
6. Refer to Figure 5-11 to illustrate a passive RFID tag.
Teaching To learn more about RFID, see: http://www.aimglobal.org/?RFID

Tip
Creating an Ultimate Consumer Orientation in the Supply Chain
1. Emphasize that the main goal of supply chain management is to help each company in
the chain focus on meeting the needs of the consumer at the end of the supply chain.
2. Introduce the term ultimate consumer orientation.
Building and Maintaining Trust in the Supply Chain
1. Emphasize that the major issue that most companies must deal with in forming supply
chain alliances is developing trust.
2. Explain that many supply chain management researchers are working on new ways to
accumulate information about supplier performance and report that information to
supply chain partners.
Online Business Marketplaces and Networks

1. Introduce the term vertical portals.
2. Note that your students will learn how these B2B electronic marketplaces were
conceived, developed, and operated as this sector of electronic commerce matured from
1997 through the present.
Independent Industry Marketplaces
1. Introduce the terms industry marketplaces, independent exchanges, public

marketplaces, and independent industry marketplaces.
2. Note that by 2010 various forms of B2B marketplaces gradually replaced independent
marketplaces.
3. Mention that four B2B marketplace models (private stores, customer portals, private
company marketplaces, and industry consortia-sponsored marketplaces) will be covered
in the remainder of this section.
Private Stores and Customer Portals
1. Introduce the terms private store and customer portal.
Private Company Marketplaces
1. Introduce the term e-procurement software.
2. Note that companies that implement e-procurement software usually require their
suppliers to bid on their business. Use real-world examples to illustrate.
3. Introduce the terms private company marketplace, private industrial networks and
private trading exchanges.
Industry Consortia-Sponsored Marketplaces
1. Introduce the term industry consortia-sponsored marketplace.
2. Use Figure 5-13 to summarize the characteristics of five general forms of marketplaces
that exist in B2B electronic commerce today. Point out that although the figure shows
five distinct B2B marketplace categories, the lines between them are not always clear.
Quick Quiz 3
1. (True or False) RFIDs can be read much more quickly and with a higher degree of
accuracy than bar codes.
Answer: True
2. (True or False) A passive RFID tag needs a power source.

Answer: False
3. A(n) ____ occurs when a retailer loses sales because it does not have specific goods on
its shelves that customers want to buy.
Answer: stockout
4. (True or False) The major issue that most companies must deal with in forming supply
chain alliances is developing trust.
Answer: True
5. A(n) ____ has a password-protected entrance and offers negotiated price reductions on
a limited selection of products - usually those that the customer has agreed to purchase
in certain minimum quantities.
Answer: private store
6. A(n) ____ marketplace is a marketplace formed by several large buyers in a particular

industry.
Answer: industry consortia-sponsored
Class Discussion Topics

1. Discuss how different industries implement supply chain management.
2. Examine the different marketplaces and their impact on purchasing/shopping and

information gathering.
3. What are the advantages and disadvantages of using a VAN?
4. Why is nonrepudiation important?
5. What are the obstacles to Internet EDI?
Additional Projects
1. Provide answers to the following questions:
▪ What are the advantages and disadvantages of RFID?
▪ What do you think will be the impact of RFID on electronic commerce?
▪ Why do you think the focus of RFID should be on the supply chain?
2. Describe five best practices that companies should develop in order to reap the benefits
of e-sourcing.
Additional Resources
1. EDI Basics: http://www.edibasics.co.uk/
2. Electronic Data Interchange: http://www.truecommerce.com/resources/what-is-

edi?gclid=CJjzkrWA0soCFdEYHwodc80HdQ
3. A General Framework for E-Government: Definition - Maturity Challenges,

Opportunities, and Success:
http://www.unpan.org/Library/MajorPublications/UNEGovernmentSurvey/PublicEGov
ernanceSurveyintheNews/tabid/651/mctl/ArticleView/ModuleId/1555/articleId/20840/
Default.aspx
4. Knowledge Management Definition and Solutions:

http://www.cio.com/article/40343/Knowledge_Management_Definition_and_Solutions
5. Supply Chain Management:

http://www.cio.com/article/40940/Supply_Chain_Management_Definition_and_Solutio
ns
Key Terms
➢ Accredited Standards Committee X12 (ASC X12): committee that develops uniform
EDI standards.
➢ Active RFID (radio frequency identification device): a RFID that has its own power
supply.
➢ Adaptive supply chain: when a company uses technology to respond quickly to

changes in market demand and supplier conditions, which can lead to higher efficiency,
lower costs and greater profits.
➢ American National Standards Institute (ANSI): the coordinating body for standards
in the United States since 1918.
➢ AS2 (Applicability Statement 2): encoding for EDIINT exchanges based on the HTTP
rules for Web page transfers.
➢ AS3 (Applicability Statement 3): more secure specification for encoding for EDIINT
exchanges.
➢ Automated clearing house (ACH): a service that banks use to manage their accounts
with each other.
➢ Business process offshoring: the offshoring of nonmanufacturing activities such as
purchasing, research and development, recordkeeping, and information management.
➢ Collaborative commerce: using Internet technologies to integrate the design,
development, construction, testing, and refinement of products.
➢ Contract purchasing: the company negotiates long-term contracts for most of the
materials that it will need. Also called replenishing purchasing.
➢ Customer portal: offer private stores along with services such as part number cross-
referencing, product usage guidelines, safety information, and other services that would
be needlessly duplicated if the sellers were to participate in an industry marketplace.
➢ Direct connection EDI: requires each business in the network to operate its own on-
site EDI translator computer.
➢ Direct materials: those materials that become part of the finished product in a
manufacturing process.
➢ EDI compatible: firms that exchange data in specific standard formats.
➢ EDI for Administration, Commerce, and Transport (EDIFACT, or
UN/EDIFACT): first standard published by the United Nations in 1987.
➢ EDIINT (Electronic Data Interchange-Internet Integration, EDI-INT): the most
common set of protocols used for the exchange of EDI transaction sets over the
Internet.
➢ E-government: the use of Internet technologies by governments and government
agencies to perform important functions for the individual citizens, businesses, and
other organizations they serve.
➢ E-procurement software: allows a company to manage its purchasing function through
a Web interface.
➢ E-sourcing: the use of Internet technologies in sourcing activities.
➢ Impact sourcing: offshoring that is done by or through not-for-profit organizations
who use the business activity to support training or charitable activities in less
developed parts of the world. Also called smart sourcing.
➢ Independent exchange: trading exchange not controlled by a company that was an
established buyer or seller in the industry.
➢ Independent industry marketplace: industry marketplaces, independent exchanges,
and public marketplaces.
➢ Indirect connection EDI: occurs when the trading partners pass messages through the
VAN instead of connecting their computers directly to each other.
➢ Indirect materials: all other materials that the company purchases, including factory
supplies such as sandpaper, hand tools, and replacement parts for manufacturing
machinery.
➢ Industry consortia-sponsored marketplace: marketplace formed by several large
buyers in a particular industry.
➢ Industry marketplace: trading exchanges focused on a single industry.
➢ Internet EDI: EDI on the Internet. Also called Web EDI or open EDI.
➢ Just-in-time inventory management: used to reduce inventory stocks of component
parts purchased by arranging for delivery of those parts to occur very close to the time
they are used in the manufacturing process.
➢ Knowledge management: the intentional collection, classification, and dissemination
of information about a company, its products, and its processes.
➢ Lean production: methods that focus on eliminating waste and unnecessary processes
throughout the manufacturing process.
➢ Maintenance, repair, and operating (MRO): standard items that buyers usually select
using price as their main criterion.
➢ Nonrepudiation: the ability to establish that a particular transaction actually occurred.
➢ Offshoring: outsourcing that is done by organizations in other countries.
➢ Open EDI: EDI on the Internet. Also called Internet EDI or Web EDI.
➢ Outsourcing: the use of other organizations to perform specific activities.
➢ Passive RFID: a RFID that does not need a power source, receives a radio signal from
a nearby transmitter, and extracts a tiny amount of power from that signal.
➢ Private company marketplace: a marketplace that provides auctions, request for quote
postings, and other features (many of which are similar to those of e-procurement
software) to companies that want to operate their own marketplaces.
➢ Private industrial network: expanded private company marketplace that includes
functions to allow supply chain participants to manage multiple functions including
manufacturing, tier-one and tier-two suppliers, distribution centers, transportation,
orders, invoicing, and payments.
➢ Private store: has a password-protected entrance and offers negotiated price reductions
on a limited selection of products - usually those that the customer has agreed to
purchase in certain minimum quantities.
➢ Private trading exchange: another term for a private industrial network
➢ Production strategy: the way a company achieves competitive advantage in its product
creation activities; the two most common strategies are efficient processing (in which
the company tries to make products as quickly or as inexpensively as possible) or
market-responsive flexibility (in which the company tries to produce the specific
products demanded by the market as it changes).
➢ Public marketplace: trading exchanges open to new buyers and sellers just entering the
industry.
➢ Purchasing card (p-card): cards, which resemble credit cards, give individual
managers the ability to make multiple small purchases at their discretion while
providing cost-tracking information to the procurement office.
➢ Radio Frequency Identification Devices (RFIDs): small chips that use radio
transmissions to track inventory.
➢ Real-time location systems (RTLS): tracking systems that use bar codes to monitor
inventory movements and ensure that goods are shipped as quickly as possible.
➢ Replenishment purchasing: the company negotiates long-term contracts for most of
the materials that it will need. Also called contract purchasing.
➢ Smart sourcing: offshoring that is done by or through not-for-profit organizations who
use the business activity to support training or charitable activities in less developed
parts of the world. Also called impact sourcing.
➢ Sourcing: the part of procurement activity devoted to identifying suppliers and
determining the qualifications of those suppliers.
➢ Spend: total dollar amount of goods and services that a company buys during a year.
➢ Spot market: loosely organized market that includes steel mills, warehouses,
speculators (who buy and sell contracts for future delivery of steel), and companies that
have excess steel that they purchased on contract.
➢ Spot purchasing: buying in a spot market.
➢ Stockout: when a retailer loses sales because it does not have specific goods on its
shelves that customers want to buy.
➢ Supply alliances: the long-term relationships created among participants in the supply
chain.
➢ Supply chain: the part of an industry value chain that precedes a particular strategic
business unit.
➢ Supply chain competition: use of technologies to improve efficiency of a company’s
operations that can help implement techniques such as just-in-time and lean production.
➢ Supply chain management: when companies integrate their supply management and
logistics activities across multiple participants in a particular product’s supply chain.
➢ Supply web: term used instead of “supply chain.”
➢ Third-party logistics (3PL) provider: a transportation and freight company that
engages in the business of operating all or a large portion of a customer’s materials
movement activities.
➢ Tier-one suppliers: a small number of very capable suppliers.
➢ Tier-three suppliers: provide tier-two suppliers with components and raw materials.
➢ Tier-two suppliers: manage relationships with the next level of suppliers, called tier-
three suppliers.
➢ Transaction sets: the names of the formats for specific business data interchanges.
➢ Ultimate consumer orientation: maintaining customer focus by meeting the needs of
the consumer at the end of the supply chain.
➢ Vertical portal: hub that offers a doorway (or portal) to the Internet for industry
members.
➢ Web EDI: EDI on the Internet. Also called Internet EDI or open EDI.

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Electronic Commerce, Twelfth Edition 5 -1

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Instructor’s Manual Table of Contents

• Class Discussion Topics

Samasource is a not-for-profit organization that facilitates connections between these

Outsourcing and Offshoring

1. Explain why an important characteristic of purchasing, logistics, and support activities

3. Introduce the term supply chain.

5. Mention that another term used to describe procurement activities is supply

6. Introduce the terms sourcing and e-sourcing.

8. Introduce the term spend.

Direct vs. Indirect Materials Purchasing

1. Discuss the concept of direct vs. indirect materials purchasing.

2. Introduce the term direct materials.

3. Review the two types of direct materials purchasing: replenishment purchasing

3. Introduce the term third-party logistics (3PL) provider.

Business Process Support Activities

2. Refer to Figure 5-2 to summarize categories of support activities.

3. Introduce the term knowledge management.

1. Define the term e-government.

Network Model of Economic Organization in Purchasing: Supply Webs

4. ____ is the intentional collection, classification, and dissemination of information about

Electronic Data Interchange

Teaching To learn more about EDI, see: http://www.covalentworks.com/what-is-edi.asp

Early Business Information Interchange Efforts

Emergence of Broader Standards: The Birth of EDI

2. Provide a historical outline of efforts to develop uniform EDI standards.

Teaching To learn more about ANSI, see: http://www.ansi.org/

How EDI Works

Paper-Based Purchasing Process and EDI Purchasing Process

4. Introduce the following terms: nonrepudiation, Internet EDI/Web EDI/open EDI,

1. Reintroduce the term electronic funds transfers (EFTs).

3. ____ is the ability to establish that a particular transaction actually occurred.

Supply Chain Management Using Internet Technologies

Value Creation in the Supply Chain

2. Introduce the terms supply-chain competition, just-in-time inventory management,

4. Emphasize that clear communications, and quick responses to those communications,

5. Introduce the term adaptive supply chain.

Increasing Supply Chain Efficiency and Cooperation

2. Introduce the term collaborative commerce.

3. Introduce the terms real-time location systems (RTLS), Radio Frequency

4. Discuss the concept of a stockout.

6. Refer to Figure 5-11 to illustrate a passive RFID tag.

Teaching To learn more about RFID, see: http://www.aimglobal.org/?RFID

Creating an Ultimate Consumer Orientation in the Supply Chain

2. Introduce the term ultimate consumer orientation.

Building and Maintaining Trust in the Supply Chain

Online Business Marketplaces and Networks

Independent Industry Marketplaces

1. Introduce the terms industry marketplaces, independent exchanges, public

Private Stores and Customer Portals

1. Introduce the terms private store and customer portal.

Private Company Marketplaces

1. Introduce the term e-procurement software.

Industry Consortia-Sponsored Marketplaces

1. Introduce the term industry consortia-sponsored marketplace.

2. (True or False) A passive RFID tag needs a power source.

6. A(n) ____ marketplace is a marketplace formed by several large buyers in a particular

Class Discussion Topics

2. Examine the different marketplaces and their impact on purchasing/shopping and

3. What are the advantages and disadvantages of using a VAN?

4. Why is nonrepudiation important?

5. What are the obstacles to Internet EDI?