Professional Documents
Culture Documents
Management
Supplement 11 –
E-Commerce and
Operations Management
PowerPoint presentation to accompany
Heizer/Render
Principles of Operations Management, 6e
Operations Management, 8e
© 2006
© 2006 Prentice
Prentice Hall, Inc. Hall, Inc. S11 – 1
Outline
The Internet
Electronic Commerce
E-Commerce Definitions
Economics Of E-Commerce
Product Design
Collaborative Project
Management
E-Procurement
Online Catalogs
RFQs and Bid Packaging
Internet Outsourcing
Online Auctions
Inventory Tracking
B2B
Global Health B2C
Business Care Exchange, Amazon, Dell,
Global Net Netgrocer.com
Xchange
C2B
C2C
Consumer Priceline,
eBay
Travelocity
Figure S11.1
Table S11.1
Table S11.2
© 2006 Prentice Hall, Inc. S11 – 18
Benefits and Limitations
Limitations of E-Commerce
Lack of system security, reliability, and
standards
Lack of privacy
Some transactions are still rather slow
Integrating e-commerce software with
existing software and databases is still
a challenge
Table S11.2
© 2006 Prentice Hall, Inc. S11 – 19
Benefits and Limitations
Lack of trust in (1) unknowns about the
integrity of those on the other end of a
transaction, (2) integrity of the
transaction itself, and (3) electronic
money that is only bits and bytes
Table S11.2
© 2006 Prentice Hall, Inc. S11 – 20
Product Design
Easily shared knowledge and
information allows quicker and lower
cost design cycles that can involve
participants in diverse locations
Product data can be managed over the
Internet
Engineering changes and configuration
management can be extended along the
supply chain
Table S11.3
Table S11.3
Table S11.3
H
H H
H
H H
H
H
Manual processes, including
paper, phone, and fax Figure S11.2
– Manufacturer – Distributor
– Hospital
H H – Group Purchasing
H H Organizations
© 2006 Prentice Hall, Inc. S11 – 29
Medical Supply Chain
New Supply Chain
Suppliers Customers
H
H H
Online H
Global Health
Care
Exchange H H
H
H
Automated Web-based processes Figure S11.2
– Manufacturer – Distributor
– Hospital
H H – Group Purchasing
H H Organizations
© 2006 Prentice Hall, Inc. S11 – 30
E-Procurement
RFQs and Bid Packaging
Database of history improves vendor
selection
Electronic files speed decisions
System is faster and less expensive
Internet Outsourcing
Outsourcing support systems like
payroll, accounting, human
resources, and travel
© 2006 Prentice Hall, Inc. S11 – 31
E-Procurement
Online Auctions
Maintained by buyers, sellers, or
intermediaries
May be used to sell excess raw
material or discontinued or excess
inventory
Low cost and increased access to
buyers