This section examines the role of e-business in production and distribution operations. Just as in other fundamental business functions, e-business has introduced opportunities and challenges. Whether in purchasing, product design, production, or delivery, e-business has changed the rules for large and small firms.
E-business changes in production and distribution are based on three fundamental opportunities. First, there is an increased ability to communicate internally, among staff, and externally with clients and suppliers. Second, businesses have the opportunity to integrate their business systems, such as order taking and billing or purchasing and production. Third, small and large businesses are beginning to move from "transaction" to "collaboration" with suppliers and customers. This section identifies and explains these opportunities for the small business.
Production and Distribution: Synopsis
Short on time? This summary highlights the key concepts of production and distribution.
e-Procurement
The electronic purchasing of goods and services over the Internet. You can search for products, review product information, place orders, set delivery requirements and dates, and, depending on the site, specify prices or invite bids. E-procurement can simplify the purchasing process by automating buying and selling, controlling inventories, reducing overhead, improving supply flow, and integrating with the supply chain management system.
Supply Chain Management (SCM)
As firms are facing tough, global competition, they are continually looking for ways in which to cut costs, improve quality and improve productivity by improving their supply chain. E-Commerce and Internet technologies are enabling businesses to achieve optimized supply chain management.
Design, Development, and Production
Computer-Aided Design and Manufacturing (CAD/CAM) and the use of Web-based technologies for sharing information and design ideas has revolutionized companies' research, design and development cycles. Production itself is experiencing significant changes through the use of networked computer-control and monitoring.
Order Management, Delivery and Distribution
From start to finish, order management is often complex, time consuming and costly. Internet Order Management involves the automation of some or all of the order management process from receiving an order to shipping it.
Resources
The Web offers a wealth of resources on innovations in production and distribution techniques and technologies. This section contains links to informational Web sites, industry association sites, online magazines, as well as information on books and other publications.
