Chapter 03

E-Business Applications, E-Procurement and E-Payment Systems

1. What is ERP?
• ERP stands for Enterprise Resource Planning.
• It's a software system that integrates various business processes within an
organization.
• The goal is to streamline operations and improve efficiency.
• ERP systems encompass functions like finance, HR, supply chain,
manufacturing, and CRM.
• Key features include integration, automation, centralized data, real-time
insights, and standardized processes.
• They provide a unified platform for data and communication across
departments.
• ERP systems offer reporting, analytics, and scalability.
• Well-known vendors include SAP, Oracle, Microsoft Dynamics, and Infor.
Examples of ERP systems  Below are a few examples of ERP systems that can
be implemented in a business.
• Actian
• Acumatica ERP
• Brightpearl
• IQMS ERP
• Microsoft Dynamics
• Oracle Netsuite ERP
• Sage ERP
• SAP ERP
___________end_________
Difference between Supply chain and e-Supply Chain Management

Aspects
e-Supply Chain
Supply Chain Management Management

Manage goods, info, and Enhance using electronic

Definition finance flow tech

Focus Physical goods movement Digital coordination

Communication Phone, fax, in-person Email, EDI, online tools

Information Flow Manual data, paper docs Real-time digital sharing

Coordination Less efficient Seamless through digital

Inventory Automated, demand

Management Manual tracking forecasting

Automated, real-time
Order Processing Manual entry, delays tracking

Real-time chain
Visibility Limited insight monitoring

Agile, real-time
Flexibility Limited adaptation adjustments

Automated workflows,
Efficiency Constrained by manual analytics

Optimize processes, cost

Cost Reduction Possible, limited savings
 Integration, security
Challenges Data issues, coordination concerns

_________________End_________________

Activities and Infrastructure of E-SCM

E-Supply Chain Management (e-SCM)

 ➢ E-Supply Chain Management (e-SCM) is the collaborative use of technology to
improve the operations of supply chain activities as well as the management of
supply chains.
➢ To enhance B2B processes and improve speed, agility, real time control, and
customer satisfaction.
➢ It involves the use of information technologies to improve the operations of
supply chain activities (e.g., e procurement), as well as the management of the
supply chain (e.g., planning, coordination, and control).
➢ The success of an e-supply chain depends on the following:
o The ability of all supply chain partners to view partner collaboration as a
strategic asset.
o A well-defined supply chain strategy.
o information visibility along the entire supply chain.
o speed, cost, quality and customer service.
o integrating the supply chain more tightly.
➢ Activities include the following:
I. Supply Chain Replenishment.
II. E-Procurement.
III. Supply Chain Monitoring and Control Using RFID.
IV. Inventory Management Using Wireless Devices.
V. Collaborative Planning.
VI. collaborative Design and Product Development.
VII. E-Logistics.
i.Supply Chain Replenishment
➢ Supply chain replenishment encompasses the integrated production and
distribution processes.
➢ Companies can use replenishment information,
o to reduce inventories,
o eliminate stocking points, and
o increase the velocity of replenishment by
o synchronizing supply and demand information across
o the extended enterprise.
ii. E-Procurement
➢ It is the use of web-based technology to support the key procurement
processes, including:
 requisitioning,
o sourcing,
o contracting,
o ordering,
o and payment.
➢ Supports direct and indirect material purchasing.
➢ Employs online tools like catalogs, contracts, purchase orders, and shipping
notices.
iii.Supply Chain Monitoring and Control Using RFID
➢ This is one of the most promising applications of RFID (Radio-Frequency
Identification)
➢ Utilizes RFID (Radio Frequency Identification) technology for real-time
tracking and management of items throughout the supply chain.
➢ RFID involves tags and readers to transmit and receive data via radio
frequencies.
➢ Tags are attached to items; readers capture tag data wirelessly.
➢ Provides enhanced visibility and accuracy in tracking inventory,
shipments, and assets.

iv. Inventory Management Using Wireless Devices

➢ Many organizations are now achieving improvements in inventory
management by using combinations of bar coding technologies (or RFID)
and wireless devices.
➢ Tracking and managing inventory levels, movement, and data.
➢ Utilizing wireless technologies like smartphones, tablets, RFID readers, and
sensors.
➢ Eliminating manual data entry, improving accuracy and efficiency.
➢ Enabling real-time updates and visibility into inventory status.
➢ Supporting inventory control throughout the supply chain.
v. Collaborative Planning
➢ A business practice merging expertise and forecasts from multiple supply
chain participants to enhance customer demand planning and fulfillment.
➢ Involves various stakeholders along the supply chain.
 ➢ Aims to optimize customer demand anticipation and satisfaction.
➢ Demands coordination between buyers and sellers.
➢ Joint development of demand forecasts and supply strategies.
➢ Improved accuracy in predicting customer demand.
➢ Enhanced synchronization of supply with actual requirements.
➢ Minimized inventory carrying costs and stockout.
Vi .Collaborative Design and Product Development
➢ Utilizes shared design and development practices among multiple firms to
enhance product launch effectiveness and speed to market.
➢ Improve product launch success and reduce time to market.
➢ Involves various companies collaborating on product design and
development.
➢ Focuses on sharing design drawings, engineering data, and technical
information.
➢ Accelerated time to market due to streamlined processes.
➢ Enhanced product quality through diverse expertise.
➢ Cost savings through shared resources and knowledge.
➢ Secure network facilitates sharing among involved parties.
➢ Collaboration spans from concept to manufacturing.
➢ Teams include contract firms, testing facilities, marketers, manufacturers,
and service providers.
vii.E-Logistics
➢ It is the use of web-based technologies to support the material acquisition,
warehousing, and transportation processes.
➢ E-logistics enables distribution to couple routing optimization with
inventory-tracking information.
➢ For example, Internet-based freight auctions enable spot buying of trucking
capacity.
➢ Utilizes technology-driven solutions to improve supply chain agility.
➢ Enhances data accuracy and real-time tracking of goods.
➢ Supports better decision-making through data analytics and insights.
➢ Promotes seamless collaboration among various supply chain partners.
➢ Contributes to overall supply chain optimization and competitive advantage.
________-end________--
 Activities and Infrastructure of E-SCM

The following are the major infrastructure elements and tools of e-supply
chains:
I. electronic Data Interchange (EDI)
II. Extranets
III. Intranets
IV. Corporate Portals
V. Workflow systems and tools
VI. Groupware and other collaborative tools
VII. Identification and tracking tools

i.Electronic data interchange (EDI):

➢ It is the major tool used by large corporations to facilitate supply chain
relationships.
➢ Many companies are shifting from traditional EDI to Internet-based
EDI.
ii.Extranets:
• Secure networks that connect an organization with external parties.
• Facilitate controlled sharing of information, collaboration, and transactions.
• Extend certain intranet resources to partners, suppliers, or customers.
iii.Intranets:
• Internal networks accessible only within an organization.
• Share information, resources, and communication among employees.
• Enhance information dissemination, communication, and collaboration.
iv.Corporate Portals:
 • Web-based gateways providing personalized access to information and
services.
• Aggregate data, applications, and communication tools in one interface.
• Tailored for employees, partners, or customers for efficient interaction.
v.Workflow Systems and Tools:
• Manage, automate, and optimize business processes.
• Streamline tasks, approvals, and information flow within an organization.
• Enhance efficiency, reduce errors, and ensure process compliance.
vi.Groupware and other collaborative tools:
o Many tools facilitate collaboration and communication between two parties and
among members of small as well as large groups.
o Various tools, some of which are collectively known as groupware, enable such
collaboration.
o Blogs and wikis are beginning to play an important role.
o A major purpose of these tools is to provide visibility to all, namely, let people
know where items are and when they arrive at certain locations.
vii. Identification and tracking tools:
These tools are designed to identify items and their location along the supply chain.
____end________-

Customer relationship management (CRM)

➢ Customer relationship management (CRM) is a customer service approach
that focuses on building long term and sustainable customer relationships
that adds value for both the customers and the merchants.
➢ When delivered online, it is referred to as e-CRM. A major area of e-CRM is
social CRM.
➢ Strategies, technologies, and practices for managing interactions with
customers.
➢ Focuses on building and maintaining strong customer relationships.
➢ Utilizes data analysis to understand and cater to customer needs.
➢ Enhances customer satisfaction, loyalty, and retention.
➢ Centralizes customer information for personalized communication.
➢ Aids in sales, marketing, and customer service optimization.
➢ Includes tools for tracking interactions, sales leads, and support requests.
➢ Facilitates targeted marketing campaigns and customer segmentation.
➢ Supports businesses in understanding and forecasting customer behavior.
➢ Aims to foster long-term customer engagement and value.
➢ SCRM is based on social media, in support of companies’ stated goals and
objectives of optimizing the customer’s experience, and building trust and
loyalty.
➢ Success requires considering people, business processes, and technology
associated with the interactions between customers and enterprises.
➢ Like CRM, a major goal of SCRM is building trust and brand loyalty (Huba,
2013 ).
➢ The elements of social CRM
 The Benefits of Social CRM
➢ Social CRM offers the following potential benefits to customers (“c”) and
enterprise (“e”)
➢ The benefits to iRobot (iRobot ( irobot.com ), which was founded in 1990 by
three roboticists at MIT with the vision of making practical robots a reality,
designs and builds some of the world’s most important robots) are marked
with an [I]. Drives quick resolution of customers’ problems (c)
➢ Provides for effective and efficient business-customer collaboration (c), (e)
➢ Improves the reputation of companies (e), (I)
➢ Provides a better understanding of customer needs and wants (e)
➢ Provides focused, intuitive, and easy-to-use CRM applications (e)
➢ Provides better marketing, better targeting, and improved products/services
due differ to customers’ creation of content, and WOM (e).
➢ Provides customer input for market research at a quicker rate and at a low
cost for improving products and customer service (e)
➢ Provides customers with more information about products/services quickly
(c), (I)
➢ Increases trust and loyalty (e)
➢ Provides a more complete view of the customer than what traditional CRM
can provide (e)
➢ Decreases overall customer care costs (e.g., through self-helping
communities) (e)
➢ Enables salespeople to find sales leads quickly and easily (e)
➢ Develops new revenue opportunities and turns new customers into repeat
customers (c)
➢ Increases CRM staff productivity by teaching them to use analytics and
collaboration 2.0 techniques (e)
➢ Improves employee performance by benefiting from knowledge sharing
gained in social networks (e)
➢ Improves customer satisfaction by providing them with opportunities for
engagement using social media platforms (c), (I)
➢ Converts leads to opportunities with more effective campaigns (e).
______End______-
E-Procurement Concepts
➢ E-procurement (electronic procurement) is the online purchase of supplies,
materials, energy, work, and services.
➢ It can be done via the Internet or via a private network such as electronic data
exchange (EDI).
➢ Includes requisitioning, ordering, vendor selection, and payment.
➢ Streamlined procurement cycle, reduced manual tasks.
➢ Increased transparency, real-time tracking, and audit trails.
➢ Cost savings through efficient supplier management.
➢ Enhanced accuracy in order processing and reduced errors.
The Goals and Process of E Procurement:
➢ As stated earlier, e-procurement frequently automates activities in the
purchasing process from multiple suppliers via the Web for better execution
and control.
➢ Improvements to procurement have been attempted for decades, usually by
using information technologies.
➢ Using e-procurement results in a major improvement.
➢ Essentially, e-procurement automates the process of auctions, contract
management, vendor selection, and management, etc.
 Four major methods of e-procurement are available:
1. Buy at own website,
2. Buy at sellers’ store,
3. Buy at exchanges, and
4. Buy at others’ e-market sites.
1. Buy at Own Website:
• Organizations have their own e-commerce platforms.
• Buyers purchase directly from the organization's website.
• Offers a controlled buying environment with tailored options.
• Ensures brand consistency and direct customer interaction.
• Requires investment in website development and maintenance.
2. Buy at Sellers' Store:
• Buyers access suppliers' e-commerce platforms.
• Similar to online retail shopping but for business needs.
 • Wide range of suppliers and products to choose from.
• Offers convenience and comparison shopping.
• Requires trust in supplier's reliability and quality.
3. Buy at Exchanges:
• Online marketplaces bringing multiple buyers and sellers together.
• Focus on specific industries or categories (e.g., B2B marketplaces).
• Enables competitive bidding and efficient supplier discovery.
• Offers potential cost savings and expanded supplier options.
• Requires adherence to marketplace rules and terms.
4. Buy at Others' E-Market Sites:
• Purchasing from third-party e-commerce platforms.
• These platforms host products from various sellers.
• Provides access to diverse product offerings in one place.
• Offers convenience and variety for buyers.
• Requires trust in both the e-market platform and individual sellers.