E-Procurement And E-Logistics

our site arranging ESSAY WRITING Business trouble Dissertation Ideas ABSTRACTIn this paper, we conk out the e-procurement and e-logistics of the dingle Inc. Company. This allow include a brief everywhereview of the ships troupe, an exploration of its Customer Relationship Management, the hand over stove counsel and an analysis of the dissimilar softw bes utilize by dingle Inc in promoting its relationship marketing.INTRODUCTION Today, many an other(prenominal) people have disc everywhereed the signifi bungholece of E-commerce. E-commerce, also cognize as electronic commerce refers to business transactions and communication via computers especially over the net income and networks (Botha, Bothma and Geldenhuys, 2008 p.23). This involves purchase and selling of services and goods, and transfer of funds among other commercial communications by the internet, in the main through the World-Wide Web (Botha, Bothma and Geldenhuys, 2008 p.23). E-commerce takes organize in different situations such(prenominal) as amid businesses and clients (B2C), mingled with wiz business/ conjunction and another (B2B), and between customer and customer (C2C).It is mainly divided into two main parts, which are e-procurement and e-logistics. E-procurement is defined as an electronic method of conducting business transactions mend e-logistics refers to the transfer of goods sold over the internet to customers (Botha, Bothma and Geldenhuys, 2008 p.24). A healthful implemented e-procurement system is highly trenchant in connecting businesses and other business processes with suppliers while running all interactions between them. correspond to Botha, Bothma and Geldenhuys (2008 p.23), the development and advancement of engineering science, many businesses now sell their crossings through computer engineering, which is a brilliant oversight of making companies reduce command overhead costs and r from each one a wide customer domicile. Thus, e-procurement be nefits not entirely the business owners, but also customers since they post shop without leaving their homes. Also, customers eject easily find the lowest price of products when buying their goods via the internet. In this paper, we discerp the e-procurement and e-logistics of the dingle Inc. Company. dingle INCORPORATEDdell Inc. is a computer gild that was established by Michael S. dingle, in 1984 (Krauss 2003 p.7). It heads a wide range of technology product categories (Krauss (2003 p.8). These products range from personal computers to services such as storage solutions. Also, it gives a variety of services, which range from business services and configur equal to(p) teaching technology including product-related support services, consulting and applications and infrastructure technology (Krauss, 2003 p.8).As stated by impose (1999 p.20), dingle Inc. operates in four global business segments, which include public, voluminous Enterprise, Consumer, and small and Medium B usiness. The company designs its own products, manufactures and markets them, sells, as thoroughly as supports a range of products and services, which arse be modified to mortal requirements of customers (Perret and Jaffeux, 2007 p.4). dingle Inc. is considered among the companies that are nearly profit equal. The company offers the most innovative customer service, as well as product custom configuration in the military personnel (Perret and Jaffeux, 2007 p.5). For this reason, the company is faced with the challenge of satisfying the customers needs while arresting a stable relationship with them.E-PROCUREMENT AT delldell Inc. is widely cognize for selling its computers and others services through the internet to other business (B2B) and to individual customers (B2C) (Perret and Jaffeux, 2007 p.5). B2B refers to business transactions between one company and another such as business customers, suppliers and distributors. The B2C refers to business transactions between a com pany and consumers. At the beginning of the 1990s, dell Inc. attempted to distribute wares by retailing. However, the management found out later that this method was unprofitable for business (Gattorna, 2003 p.51). Hence, dell Inc. decided to key on boosting its customer support and services by allowing customers to make coordinates directly (Gattorna, 2003 p.52). This was considered a unique strategy for dingle customization.Recently, dingle Inc. improved its sourcing and buying processes by implementing a leading e-procurement solution know as Ariba Buyer (Krauss, 2003 p.8). In order to ease the business processes between dell Inc. and its supplier companies, Ariba Buyer which is an e-procurement solution is used. It is quite useful in automating and streamlining sourcing. (Li, 2007 p.20). In earlier years, making obtain orders at Dell was a highly laborious process since company workers filled out forms for each purchase process every beat they arranged an item, which inclu ded stack away about ten approval signatures (Li, 2007 p.21).The purchasers were because expected to re-enter the selective information into two different systems that included a home-grown Access database and the legacy buying system. This paper-based process was challenging for Dell to track its purchases by commodity, as well as analyze its purchasing patterns in terms of where, how much and from whom the supplies were bought, consequently the change in its procurement process. Thus, Dell Inc. implemented an e-procurement solution known as Ariba Buyer.E-procurement enabled Dell to streamline its supplying base. This abeted in the elimination of unpredictable spending, as well as standardization of the ordering processes for its suppliers. (Krauss, 2003 p.8). This was followed, by Dells move, to assess 3 e-procurement systems depending on five criteria. These criteria included a user-friendly boundary, cost- effectualness, and integration with existing back-end system (Krau ss, 2003 p.8). Others included e-commerce links to most of Dells supplying companies, and compatibility with the current IT policy of Dell servers (Li, 2007 p.20).According to Gattorna (2003 p.50), close to seven months were spent by the personnel that were responsible for implementing Ariba. This time was spent in developing twenty interfaces that would facilitate connection of Ariba buyer with Dells legacy systems. They created linkages for Ariba and Dells purchase order, compose data, cost center, accounting code validation, and employee data among other systems (Gattorna, 2003 p.50). This was make to go over that all the processed orders had been validated. This resulted in a final product, which facilitates making purchases online. This product is known as Dell Internet Requisition Tool (DIREQT) (Gattorna, 2003 p.51).Currently, DIREQT has made it easy for Dell employees to complete purchasing orders online by loging into DIREQT Web site, as well as conducting searches for ce rtain products, suppliers or services, which usually give holy status reports (Levy, 1999 p.23). Immediately, Ariba Buyer forwards the catalog items and requisition straight to the serious manager at the cost center who signs the order electronically. The system then automatically creates an approving reach before directing it to an employee network. (Gattorna, 2003 p.51). However, if the product ordered is not present in the catalogue, Ariba Buyer includes a Dell buyer to source the product and hands over the request for last signatures (Perret and Jaffeux, 2007 p.6). later the requisition has been approved, it is moved to the Ariba commercialism Services Network (ASCN). ASCN is a dual-lane network infrastructure that helps to connect with buyers and marketplaces, on the Ariba Business to Business (B2B). Commerce stand (Perret and Jaffeux, 2007 p.6). Ariba uses ASCN to communicate its orders to suppliers, which includes shipping through e-mail, faxes, Extensive Markup Language (XML) and electronic data interchange (EDI) (Perret and Jaffeux, 2007 p.6). Moreover, Ariba Buyer also accelerates the payment process in Dell Inc.The receipts that Dells central receiving department prepares for wares are brought into the organization and matched automatically with the right invoice. This is then fed into the system by the account payable processors (Bothma and Geldenhuys, 2008 p.25). In addition, the purchasers create receipts of the service wedded to them, which is also matched in an automatic manner. Therefore, this practice helps to avoid the early snatch of service invoices, which is time-consuming, when making purchases for approval.As stated by Botha, Bothma and Geldenhuys (2008 p.25), with the Ariba Buyer at Dell, the requisition cycle time is likely to be reduced by 62%, and lessen operation costs by 61%. However, Dell Inc. believes that it stands to benefit on a larger scale from the perception into the buying process attained through combining custome rs information. Moreover, through the use of Ariba, Dell is able to gather information necessary to evaluate its supply base and re-evaluate key business to market communications services, office products and consulting, among many more kinds of expenditures (Gattorna, 2003 p.50).CUSTOMER human relationship MANAGEMENT According to Perret and Jaffeux (2007 p.7), Customer Relationship Management (CRM) is the creation and maintenance of relations with customers. The key aim of Dell is to offer its customers scientificly reliable customer service requirements. Perret and Jaffeux (2007 p.7) argue that the software package that help in facilitation facilitate Dells CRM include marketing mechanization software, a system that benefits the sales, and custom designed Web pages that contain purchase data.According to Ross (2010 p.88), today, one fifth of standard-based computers sold in the world is Dells product. The key concept of Dell Inc. is to sell computers directly to customers. Th is will increase their success in the computer business. (Ross, 2010 p.88). Before Dell Inc. invented the tailor-made concept, its customers used to buy its products from electronic shops and retail stores. In this case, customers interacted only with the sales rep of the store and not the manufacturer. Therefore, Dell introduced the concept of interacting directly with the customer via the internet so as to fulfil the demands of its clients and devolve quality services.E-LOGISTICS AT DELL INC. For Dell Inc., the E-logistics has entirely changed it way of distributing its products. Traditionally, Dell used to surcharge up components from the warehouses of suppliers then collect them in its central or domainal distribution centres, and finally merge them in stock in order to de snuff itr the final products to customers (Ross, 2010 p.88). Currently, through implementation of e-logistics, Dell Inc. can now pick up components from the ware houses of suppliers and then forward the merging of components made during the move through to the logistic-service providers through USP or Airborne Express (Li, 2007 p.36). This has resulted in less bushel costs spent in warehouse centers and distribution, no product technological obsolescence, and no stock-keeping units (SKU).SUPPLY CHAIN MANAGEMENT AT DELL INC.Supply Chain Management (SCM) is a system that Dell established to consider the avail big businessman of precise computer components for its customers on demand and location. SCM describes how the company manages how afflictive materials are trans organise into the end products and how products and services get to all its consumers (William, 2003 p.150). This has enabled the company to develop a tight bond with its supplier companies and consumers.In this regard, Mencarini (2003 p.19) states that Dell Inc. have one of the most effective SCM system in the world, and that it is snap on creating the best SCM through the i2. This will improve the supply chain pr ocess through connecting its suppliers and planners in order to satisfy the requirements, as well as demands of their customers.SOFTWARE USED BY DELL IN PROMOTING RELATIONSHIP MARKETINGDell also uses a variety of software to publicize relationship marketing such as Hotlink, Premier Pages and an enhanced CRM system, among others (Gattorna, 2003 p.57). Its database software is highly efficient and effective with customer relationship management, which stores tables of data used to check the information of customers and establish promotional campaigns. These databases mainly include the information of customers, their products and interests. According to Gattorna (2003 p.57), customer database helps to increase profits since it contains the information of clients, which determines the efficient and effective ways to target and divide the consumers.Hotlink is an automation software program, which facilitates tergeting and marketing communication, monitor of customers and market develop ment (Mencarini, 2003 p.21). This software gives Dell a free chance to advertise its products through the word of mouth. Also, it impacts its customer base to ensure that customers witness better services than before. Premier Pages are a transparent online system/software custom designed Web pages, which contain all the purchasing data (Gattorna, 2003 p.57). In addition, the software contains a paperless ordering process, which captures the technology configurations of customers. Mencarini (2003 p.21) argues that Dell created Premier Pages in order to gather less clientele details than they already have and develop a win-win situation that is more realistic. This starts when the clients places their orders for a computer and built later.another(prenominal) system that Dell uses is an enhanced CRM system, helped by an information system company called the IS Partners (Moon, 2003 p.45). ProClarity offers a comprehensive analytical ability that highlights negative and positive areas of the business. Moreover, the company breaks down its sales by region where each team enables Dell to measure its own trend and success. ProClarity importantly benefits all the financial sections of the company. It also helps the Dell staff to easily bother detailed demographic information about customers. The marketing department is able to follow product sales, customer activity and marketing mixes via this software. The management can follow activities in customer accounts, and act on lapsed quotes.Additionally, Dell installed the e-commerce software i2 Collaboration contriver, i2 Supply Chain Planner and i2 Factory Planner in order to meet its supply chain needs (Moon, 2003 p.45). This is applicable in the management of build-order procedures that exist between placing orders and customer support. The software enables Dell Inc. to classify customers and target them through their most preferred medium, obtain and analyze results (Moon, 2003 p.45). Moreover, Dell Inc. has sign ed an agreement with Part-Miner (Gattorna, 2003 p.51). Part-Miner is a vertical portal in electronic components industry, which provides information and helps to meet the demand and supply of the components.FUTURE PLANS OF DELL INCIn future, Dell plans to update its processes of purchase such as the fundamental law of online auctions for products and services like printing, shipping, and paper (Li, 2007 p.20). The company also plans to make order status, payment information and receipts easily accessible to suppliers online. In advance years, Dell intends to expand its catalogue base and purchase choices by persuade its main suppliers to use the Ariba Business to Business Commerce Platform (Li, 2007 p.20). destinationCRM-SCM integration tries to satisfy clients through prompt delivery of products, ensuring its accessibility and maintain the manufacturers profits and returns. Thus, there are several lessons that can be drawn from Dells application of e-business. This trend can be e mulated by other organizations in the industry. This will result in offering of better services to customers. It can be portrayed via the way Dell Inc. uses CRM to its advantage. Customer satisfaction will increase their trust in the organization, improving its reputation. In addition, custom-building a PC desired by the clients has formed a particularly strong relationship between Dell and its customers (Moon, 2003 p.50). In addition to this, implementing technology in a phased fashion has helped Dell to fulfil a strong relationship with its clients. Dell set up reproduce environments in order to support the i2 system in blotches without affecting the live form. Dell ensured that all stages of the completed process allowed future growth of the company before developing the whole system. Hence, this reduced risk and increasing efficiency.Another significant lesson from Dell would be to extend the link from the customer to the supplier, while maximizing its operation efficiency as well as customer satisfaction (Ross,2010 p.92). As a result, customers were able to spend less bills on purchasing customized machines. This is because Dell approved the savings that resulted from managing its inventories efficiently. The company was, therefore, able to share information with suppliers about customer requirements and buying patterns in real-time.REFERENCESBotha, J., Bothma, C. &038 Geldenhuys, P. 2008. Managing E-commerce in Business, New York,Juta and Company Ltd.Gattorna, J. 2003. Gower handbook of supply chain management, Burlington, Gower PublishingLtd.Krauss, M. 2003. Dell looks to Sears to extend buyer reach. Marketing News, April 28, 2003,Vol. 37, Issue 9.Li. L. 2007. Supply chain management concepts, techniques and practices enhancing the valuethrough collaboration, Tokyo,World Scientific.Moon, K. 2003. Dell Computers A Leader in CRM. Retrieved February 20, 2010Mencarini A. 2003. E-Business Dell Case Study, UK, Strathclyde Business School.Perret, F. &038 Ja ffeux, C. 2007. Essentials of logistics and management, London, EPFL Press.Levy, R. H. 1999. The Visible Marketer Dells CRM modeling stresses transparent processes. Available fromhttp//directmag.com/mag/marketing_visible_marketer_dells/index.htmlAccessed 20th February 2012Ross, D. F. 2010. Introduction to Supply Chain Management Technologies. London, CRC Press.William C. 2003. The true meaning of supply chain management. Logistics Management, June 2003, Vol. 42, Issue 6.