E-business (electronic business) covers all online business activities, from product development to sales, customer service, and supply chain management.Below are some key characteristics of e-business that shape how companies operate in the digital age.
1. Collaborative Product Development
When two or more individuals or firms work together to create a new product, it is known as collaborative product development. This can include some or all stages of product creation—such as developing the concept, engineering parts or components, and marketing the final product. It’s also often referred to simply as collaborative development.
2. Collaborative Planning, Forecasting, and Replenishment (CPFR)
CPFR is an approach aimed at improving supply chain integration through joint practices between partners. It focuses on cooperative management of inventory, with shared visibility and replenishment of products across the supply chain.
By sharing information between suppliers and retailers, businesses can:
- Plan better
- Meet customer demand more effectively
- Continuously update inventory and upcoming requirements
This creates efficiency by reducing costs in merchandising, inventory, logistics, and transportation for all trading partners.
3. Procurement and Order Management
Purchase order management is a procurement process that ensures every purchase is necessary, justified, and cost-optimized.
Many organizations have strict purchase order policies so employees follow standard procedures before executing any purchase orders.
4. Operations and Logistics
Logistics operations form a vital part of the supply chain. They involve moving finished goods from the manufacturer to the end user, and managing:
- Ecommerce inventory
- Order fulfilment
- Shipping
Key activities like inventory management, warehousing, and order fulfilment help streamline ecommerce logistics for better efficiency.
5. Security and Privacy
- Privacy refers to control over one’s personal data.
- Security refers to preventing unauthorized access to that data.
Both are major concerns for e-commerce platforms and consumers alike.
6. Lack of Trust and User Resistance
Research shows that factors like:
- Website user interface quality
- Information quality
- Awareness of e-commerce
- Perceived privacy
…all play a significant role in building e-customer trust (ECT) and, in turn, e-loyalty. Interestingly, perceived security risk was found to have little direct impact on ECT.
7. Channel Conflict
Channel conflict happens when a manufacturer bypasses the distributor or retailer and sells directly to the consumer. It can also occur within the sales department of a retail or corporate business.
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