Planning for e-commerce

Trading partner relationships and e-commerce

Guide

E-commerce can help improve relationships with trading partners.

These online systems can also allow you to improve your own business efficiency.

Intranets and extranets

You can use an internal, browser-based company network (intranet) to improve efficiency. For example, by enabling employees to search for and share key business information.

An extranet extends this to external partners, such as suppliers and key customers.

You can use extranets for exchanging data and applications and to share specific information. For example, you can share inventory levels and sales trends.  

Read more about the benefits of intranets and extranets.

Supply chain management

The concept of supply chain management revolves around having the right product in the right place, at the right time, and in the right condition.

The key aspects of supply chain management include the ability of businesses to:

  • exchange information on stock levels
  • fulfil orders more quickly
  • minimise excess inventory
  • improve customer service
  • use a networking infrastructure to ensure good response times and speed

See supply chain management software

E-marketplaces

E-markets, also known as electronic marketplaces, are virtual platforms that serve as a hub for transactions. They let suppliers, buyers, and middlemen to trade products and services with no physical limitations.

These platforms offer many products and services. They let buyers browse and search by criteria such as price, quality, and delivery time. Algorithms drive the matching to find the best fit between buyers and sellers.

When a deal is made, it is a match between the buyer and seller on factors such as:

  • price 
  • volume 
  • delivery costs 

Reverse auctions

Reverse auctions are a distinctive feature of e-marketplaces, especially helpful in procurement processes. Traditional auctions involve sellers competing to offer the highest price. Reverse auctions are buyer-driven.

The supplier with the lowest price usually gets the deal. However, the buyer might also consider other factors such as delivery time, quality, and reliability.