E-business includes a wide gamut of initiatives such as Merchandise planning and analysis, order entry and order tracking, order fulfillment, warehousing, inventory management, customer service and knowledge management. There are a set of steps in which typical wholesale e-commerce transaction is concluded. Initially, the buyer logs on to the browser, he then looks for the relevant product, selects the product and orders the same. Post this, a purchase order is sent to the seller which the seller confirms. Then payment information is sent to the bank. The credit is checked, the credit is approved and the product is finally shipped. Further, In a B2B supply chain a raw material supplier sends the raw material to the manufacturer who in turn sends the finished product to the wholesaler and the wholesaler transmits the same to the retailer. The retailer then generates a demand with the wholesaler when he anticipates a higher off take from the shelves which in turn gets transmitted to the raw material supplier. Moreover, before a product reaches a consumer there are different objectives on each aspects of the value chain. Differentiation is the goal in product development while lowering the cost is the objective when it comes to manufacturing and distribution while marketing is all about carrying out a focused campaign. E-business is propagated through a host of community building programs such as E-mail newsletters, industry relevant reports, chat events and promotions and contests.

1. E – Commerce
and Internet

2. E-Business
includes
• Merchandise • Other logistics
planning & analysis • Pricing &
• Order entry,order Promotions
tracking • Financial accounting
& reporting
• Order fulfillment
• Customer service
• Warehousing
• Customer
• Inventory relationship
Management management
• Shipping • Knowledge
• Returns management and
• Supply Chain

3. Basic Database Configuration for
Transaction-Ready Websites
Database A
Inventory
Web browser Web server CGI Script
Database B
Identifiable customers
Database C
Web content &
other customers

4. Steps in a wholesale E-Commerce Transaction
User profile
on the WWW User preferencing
system
Step 4
Step 2 Step 3 Step 7
Buyer selects Buyer orders
Buyer searches for Buyer pays for
product product product product
Purchase
Homepage catalogs Payment
order
Order
options
Content Dynamic confirmation
Transaction Transaction
publishing
server server processing processing
Step 5 : P.O. sent to seller Step 6 : Seller confirms order Step 8 : Payment information sent to bank
Step 1 Buyer logs
on to browser LEGACY iNTEGRATION Legacy Integration
11. Product Seller Legacy Sellers Bank Buyers bank
shipped systems Bank
step 10: Step 9:
Credit approved Credit checked

5. AIMSTER’s Working
Aimster Aimster
Q
A
Users
ask
Aimster
Software
provides the
answer
Software searches the files

7. Information Flow for a B2B
Supply Chain
Orders
Orders consolidated Orders
Raw
material Manufacturer Wholesaler Retailer
Supplier

8. Material & Information Flow
from Raw Material to Consumer
Material Flow
Manufactured Repacked Customer
Raw
Supply Chain
Management
product
product product
material
Consumer
Pricing Pricing Pricing
schedules availibility pricing
availibility
Information Flow

9. Michael Porter’s Competitive
Forces Model

10. The Value Chain
Product manufacturing marketing
distribuition
development
suppliers
differentiate Low cost Low cost focus customers

11. The Value System
supplier company distributor
support
primary
s c s c
support
c primary s
S = supplier competitor
c = customer

12. Competitive Forces Model
Threat of
new entrants
Bargaining power of Rivalry among Bargaining power
consumers existing competitors of suppliers
Threat of substitute
products/services

13. ISP – Different Tiers
Tier 3
Tier 1 Tier 2 Tier 4
Tier 3
provider providers
Tier 5
Tier 3
Tier 3 Local
Providers

14. Community Building Programs
• E-mail news letters
• Industry relevant reports
• Community calendars
• Public Bookmark files
• Chat events
• Promotions and contests
• Community forums & bulletin board &
• Community knowledge bases

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