Integrating with the e-Business Models of Suppliers, Partners, and Customers

Integrating with the e-Business Models of Suppliers, Partners, and Customers

It is important for a firm to integrate their e-business models with its stakeholders in order to be able to effectively communicate information across the supply chain. This allows all parties in a supply chain to react quickly to changing conditions in orders, projects, and markets. Customers need to be able to efficiently send requirements and orders to the firm and receive delivery in a timely manner. Likewise, a firm needs to be integrated with its downline suppliers to send requirements and receive shipments. Competitive advantage is gained by the firm who can coordinate its supply chain to meet its markets' price, delivery speed, and quality requirements. By integrating e-business models within a supply chain, all parties can remain competitive. For many companies, loss of a single major customer chain can cause ripples in its financial performance.

One company ATAK worked for did not do a very good job of integrating its e-business models with its customers and ran different operating systems and office software than its main customers. While the use of FreeBSD and other open source systems were cost effective from a software standpoint, the time lost in troubleshooting and fixing compatibility issues did not impress customers. Eventually, this company lost many of its customers because of its inability to respond quickly and effectively in a business where responsiveness and flexibility was integral.

Minimizing steps such as time to sell, process/acknowledge, order, stock, shelve, charge/process, and ship by adopting integrateable solutions all make a business a better vendor, supplier, customer, and partner. If employees have an easy time processing all of the above, there will be more time and budget for moving the business forward in other ways such as advertising, sales, better equipment and locations, etc. In my opinion ebusiness tools should not be felt, they should just be. If the system doesn't run without daily/hourly complaints it is not serving its purpose.

Online sites and service centers need to be compatible with all web browsers and add-on components their targets are likely to have on their machines when they will most likely be looking at the site. Service should be quick (A web site should load quickly on even the most basic of computers) if their users are likely to use the service. We are fed a ton of information on and off the web/TV and always have options. If a service is slow or a site loads slow, or does not look legitimate on someone's machine, they can turn to the next listing on the phone book or Search Engine.

eCommerce/eBusiness systems that integrate automatically with UPS, FEDEX, USPS, and CANADA POST (suppliers) get customers real time quotes before checkout based on weights and dimensions specified per product in the database. Customers are left with zero questions before hitting the checkout button. No hidden fees, ever. That process is how UPS and all of the other providers like it because the solution makes them look good too and allows them to deal with more packages per day from all customers. This lets them pass savings on to valued customers. Labels are automatically generated and orders emailed into the UPS and/or whoever's system. Orders are processed same day if made by a certain time and daily pickups come when there are packages to pick up. If customers demand FEDEX and UPS they should have the option.

When orders are made and automatically generated in a point of sale (POS) system or QuickBooks (any accounting software really), bookkeeping time, setting up customer accounts, invoices, and payouts can all be done real time. Customers do not have to call to find out order notifications because they can automatically post into the account details. Suppliers do not have to call to see orders, unless they want to. This type of easy access service creates added value for the customer.

If suppliers have similar "eCommerce" systems in place for a retailer, orders can be made with billing terms and set discounts/margins already set in place. ATAK has a customer that has an eCommerce site only available to approved wholesalers. They do not sell retail and only allow access to purchase via a vendor login. This is great for the retailer because they can purchase online easily over and over and customers can view the site for info without seeing prices. This is a matter that solves many of the problems of being a wholesaler.

Vendor orders/notifications can be sent to management, the warehouse, and the customer at the same time without anyone getting out of their seat. Receiving docks should be a fit for all suppliers who drop off product so that load and leave times are quick. If a company can adapt easily to their suppliers methods for taking orders and payments, the happier suppliers will be. The service will probably be better, if not already as good as possible.

All of these improved services should lead to more revenues and happier partners. Partners want to know that the company is running as well and better than competition. As returns increase and customer reviews improve, partners see the benefits of systems adopted. The quicker they have the ability to gain access to real time information in systems via a login, VPN, or real time blackberry integration the happier they are. If a web site/ebusiness system has real time sales reports and site statistics accessible however they like, the happier they will be because they can spend more time moving the business forward.

- By David Ephraim of Atak Interactive, Inc.