Saturday, January 24, 2009

Discuss how E-commerce can reduce cycle time, improve employee’s empowerment and facilitate customer support?

  • REDUCE CYCLE TIME

World changing rapidly and everyone strive to minimum the total time spend for every transaction. Supply chain management show a list of importance and significance of reducing cycle time needed in business field. Cycle time in others form means the amount of time taken to complete a business transaction. For example a process of purchase order, delivery goods, reach customer. E-commerce able to reduce cycle time by eliminates the few steps in traditional business process and it takes shorter time to complete a business transaction. E-commerce also able to reduce cycle time by eliminates the time taken to process in between supplier, intermediaries and customer. It shorten order cycle time to increase competitive advantage, decrease carrying costs, decrease shrinkage costs and improve cash flow. It decreases the amount of time necessary for a customer to receive an order after it placed. For example Dell Company is using Just In Time (JIT) strategy.


  • IMPROVE EMPLOYEES’ EMPOWERMENT

E-commerce able to improve employee’s empowerment by electronic-data-interchange (EDI) which enables the employees to have freedom and authority to access in transaction system, transparency barrier between employee and customer is clear cut. Employee in charge can have more understanding on the business and the transaction and provide relevant feedback to customer. Employee can do their job independently without supervision. Employees who work in these circumstances are more productivity rather than those who work under tight supervise. And freedom at workplace can increase their motivation to perform better.


  • FACILITATE CUSTOMER SUPPORT

Customer demands are increase from day to day. They require more efficiency ways of dealing with their daily demand. Ordinary customer required more than what the web page provide, they required immediate response for their request. So, quality of services is much more emphasize nowadays compare with the physical product. Share database in between the employee is crucial for further follow up process where they can obtain customer profile and information in order to solve their problem.


Firms are encouraged to provide Graphic-user-interface (GUI) enables the user to view and to order the product. Firm can provide some information and brief summary of their product through picture or video to clarify to customers about the product. Firms need a better prospect to recognize the customer changing trends and demands. Hence, a well define feedback of the services and products are essential for company long term improvement.

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