Benefits of E-Commerce in the value-chain process

Benefits of E-Commerce in the value-chain process

Every business is part of a value chain, with supplies on the buy sides, and customers on sell sides. Cost-saving methods usually focus on the buy side of the value chain and on improving the productivity of system and process that interact with suppliers. Revenue-enhancing benefits usually focus on sell side of the value chain and on improving the productivity of systems and processes that interact with customers. The benefits of e-commerce for both the side and sell side include:


1. New customers

2.  New sales channels

3. Improved productivity

4. Better data for more informed decisions

5. Improved policy compliance

6. New services

7. Higher customers satisfaction

8.New information products


1. New customers: Establishing new channel may results in reaching customers that the company is not currently serving effectively.


 2.  New sales channels: Establishing new channels such as a trading exchange, a new distribution network, or direct selling can provide new revenue opportunities.


3. Improved productivity: The benefit is usually measured in terms of the cost savings that results by lowering the cost of transactions. For examples, a company can automate a paper-based manual process such as requisitioning by using a purchasing applications on a computer


4. Better data for more informed decisions: Better data results in useful information for predicting future business events such as next month’s orders. More accurate data means that the company can adjust inventory level accordingly. If the demand forecast is accurate, the company can move to a just-in-tie inventory solution.


5. Improved policy compliance: Policy compliance measure improve the quality and efficiency of business operations. For  example, a company can set rules on specific general ledger codes that eliminate manual corrections or restrict purchasing to a list of approved vendors.


6. New Services: Extending a business process may facilitate providing value-added services, such as dispute resolution, financial settlement, logistics and authentication.


7. Higher Customer satisfaction: By having a better and deeper relationship with customers, we can ensure happier and more loyal customers who spend more money and return more often. If the company is the easiest and simplest channel to buy from and offers rich customers value (most variety, best information on availability, highest quality and so on), then the company has a competitive advantages.


8. New information products: Technologies may capture data previously not available, and the packaging of the data may provide another product to sell.


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