Evolution of Trust in Business-to-Business E-Commerce

2011 ◽  
pp. 47-55
Author(s):  
Pauline Ratnasingham
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
The Internet ◽  
Chain Management ◽  
Distributed Information ◽  
Make To Order ◽  
Trading Partners ◽  
Make To Stock ◽  
Trust In Technology ◽  
Business To Business

E-commerce is defined as a means of conducting business electronically via online transactions among trading partners. Forrester Research predicted that B2B (business-to-business) e-commerce could be worth $5.7 trillion by the end of 2004. This study aims to examine the evolution of e-technologies and its impact on trust. Trust refers to reliance on and confidence in one’s business partner (Mayer, Davis, & Schoorman, 1995). We discuss the evolution of e-technologies in light of the evolution of trust in technology trust (or transactional trust) and relationship trust or (relational trust). Electronic data interchange (EDI) was the prominent technology used in the 1970s and ’80s. As we approached the 21st century and with the advent of the Internet, businesses feared that the lack of presence on the Internet would hinder their competitive and strategic advantages. Internet competition in most industries is forcing businesses to search for ways to improve product quality, customer service, and operation efficiency in supply chain management (SCM) in order to remain competitive. Today e-commerce has moved beyond EDI via value-added networks (VANs) by leveraging into the Internet and extending into Web technologies. The Internet is transforming and reshaping the nature of interorganizational commerce by enabling new types of interorganizational relationships. The business benefits include lower costs and more flexible systems that provide a facilitating structure for virtual relationships, enabling the easier identification of suppliers and products and more integrated supply chain management (Dai & Kaufmann, 2000). The Internet has impacted the SCM e-commerce environment by creating a centralized, global business and management strategy (e.g., make to order, assemble to order, and make to stock), and online real-time, distributed information processing to the desktop, thereby providing total supply-chain information visibility and the ability to manage information not only within firms, but also across firms and industries. On the other hand, uncertainties, technical complexities, and concerns about trust have kept many firms from participating actively in B2B e-commerce. Uncertainties reduce the confidence both in the reliability of online B2B transactions and more importantly in the trading parties themselves. In a survey of 60 procurement trading partners involved in supply chain management at U.S. firms conducted by New York-based Jupiter Media Metrix Inc. in 2001, the findings indicated that 45% of the trading partners suggest a lack of trust prevented them from buying goods and trading online more frequently. In the next section we discuss the evolution of e-technologies, followed by its role in supply chain management and impact on trust.

Evolution of Trust in Business-to-Business E-Commerce

2011 ◽  
pp. 495-501
Author(s):  
Pauline Ratnasingham
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
The Internet ◽  
Chain Management ◽  
Distributed Information ◽  
Make To Order ◽  
Trading Partners ◽  
Make To Stock ◽  
Trust In Technology ◽  
Business To Business

E-commerce is defined as a means of conducting business electronically via online transactions among trading partners. Forrester Research predicted that B2B (business-to-business) e-commerce could be worth $5.7 trillion by the end of 2004. This study aims to examine the evolution of e-technologies and its impact on trust. Trust refers to reliance on and confidence in one’s business partner (Mayer, Davis, & Schoorman, 1995). We discuss the evolution of e-technologies in light of the evolution of trust in technology trust (or transactional trust) and relationship trust or (relational trust). Electronic data interchange (EDI) was the prominent technology used in the 1970s and ’80s. As we approached the 21st century and with the advent of the Internet, businesses feared that the lack of presence on the Internet would hinder their competitive and strategic advantages. Internet competition in most industries is forcing businesses to search for ways to improve product quality, customer service, and operation efficiency in supply chain management (SCM) in order to remain competitive. Today e-commerce has moved beyond EDI via value-added networks (VANs) by leveraging into the Internet and extending into Web technologies. The Internet is transforming and reshaping the nature of interorganizational commerce by enabling new types of interorganizational relationships. The business benefits include lower costs and more flexible systems that provide a facilitating structure for virtual relationships, enabling the easier identification of suppliers and products and more integrated supply chain management (Dai & Kaufmann, 2000). The Internet has impacted the SCM e-commerce environment by creating a centralized, global business and management strategy (e.g., make to order, assemble to order, and make to stock), and online real-time, distributed information processing to the desktop, thereby providing total supply-chain information visibility and the ability to manage information not only within firms, but also across firms and industries. On the other hand, uncertainties, technical complexities, and concerns about trust have kept many firms from participating actively in B2B e-commerce. Uncertainties reduce the confidence both in the reliability of online B2B transactions and more importantly in the trading parties themselves. In a survey of 60 procurement trading partners involved in supply chain management at U.S. firms conducted by New York-based Jupiter Media Metrix Inc. in 2001, the findings indicated that 45% of the trading partners suggest a lack of trust prevented them from buying goods and trading online more frequently. In the next section we discuss the evolution of e-technologies, followed by its role in supply chain management and impact on trust.

Supply-Chain Challenges for B2B eCommerce with Examples from the Chemical Industry

2002 ◽  
pp. 132-146
Author(s):  
ManMohan S. Sodhi
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Chemical Industry ◽  
The Internet ◽  
Chain Management ◽  
Customer Expectations ◽  
Business To Consumer ◽  
Business To Business

In this chapter, I examine supply-chain-related challenges that eMarketplaces and existing companies face as business-to-business eCommerce increases. Although the Internet is increasingly attractive for B2B commerce and for supply-chain management, eCommerce is more likely to reveal the inefficiencies in supply chain and to increase customer expectations relative to offline trade. Therefore, managers must understand the supply-chain management challenges associated with B2B eCommerce, especially in light of the fulfillment failures already experienced in business-to-consumer eCommerce.

scholarly journals E-business in Supply Chain Management

2011 ◽  
pp. 24-42 ◽  
Author(s):  
Claudia-Maria Wagner ◽  
Edward Sweeney
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
The Internet ◽  
Research Needs ◽  
Rapid Rate ◽  
Ongoing Research ◽  
Chain Management ◽  
Trading Partners ◽  
Use Of The Internet

E-business is concerned with the use of the Internet to link companies with their suppliers, customers and other trading partners. As a business concept, it has evolved significantly since its introduction in the 1990’s in parallel with the rapid rate of development of information technology (IT) during this period. Supply chain management (SCM) is fundamentally concerned with integration of activities both with and between organisations. IT plays a crucial role in SCM as a key enabler of supply chain integration (SCI). This chapter sets out the role of e-business concepts in the context of the supply chain challenges faced by firms. It specifically explores the role of e-procurement as an example of how e-business concepts have been applied to one key SCM activity, namely purchasing and procurement. In this context, the chapter examines the nature and evolution of e-marketplaces and goes on to identify key adoption drivers and benefits based on recent research. This research identifies key adoption drivers and benefits but also recognises that there are many barriers that ongoing research needs to address if the potential of e-business is to be fulfilled.

Introduction to Supply Chain Management and Multimodal Logistics

2019 ◽  
pp. 1-28
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Chain Management ◽  
Cost Leadership ◽  
Make To Order ◽  
Leadership Strategy ◽  
Make To Stock ◽  
Engineer To Order ◽  
Focus Strategy ◽  
Cost Leadership Strategy

This chapter provides an understanding of basic essence of supply chain management. It introduces a multi-dimensional facet of supply chain management. A typical supply chain has at least three entities, that is, the supplier, the firm, and its customer. The inter-link between these three entities comprises three primary components of a supply chain, namely, the inbound or upstream supply chain, internal supply chain, and outbound or downstream supply chain. However, in a real-life scenario, many firms (especially in case of large and complex firms), the suppliers, and production centres are more than one. This increases the complexity of the supply chain structure. This concept has been introduced in this chapter. The drivers of supply chain have been categorized under strategic and operational drivers. This aspect has been explained, with examples. The chapter discusses the enablers and inhibitors of a supply chain of a firm. It proceeds to explain the issues in assessing and integrating the drivers, enablers, and inhibitors in the supply chain planning process. Bull whip and snow ball effects are two important outcomes of an inefficient supply chain. These concepts have been introduced here. Finally, the chapter concludes by laying down the objectives and the strategies of supply chain management. It prioritizes the focus of supply chain management, stating that customers come first followed by cost optimization. The chapter discusses on the ways to make supply chain agile and flexible. Supply chains are always prone to disruptions; hence, this chapter talks about a resilient supply chain. Next to customer, cost is an important element that enables a firm to keep its price competitive and be profitable. Here the concept of a lean supply chain has been discussed, a way to minimize waste and hence reduce cost. Supply chain management varies with firms' business strategy. The firm may choose to follow either a cost-leadership strategy or a differentiation or a focus strategy and thus would accordingly adopt push or pull or push-pull (supply chain) strategy. In case of cost-leadership strategy, the firm is expected to follow “make-to-stock” (operations) strategy; in case of differentiation strategy it would adopt “make-to-order” strategy; and for focus strategy the firm embraces “engineer-to-order” strategy. This chapter discusses these aspects to correlate the different dimensions of business and its supply chain management. Firms now are focussing on global operation to leverage on opening up of economy, enabling them to lower the cost of operations and achieve the desired quality. Besides, globalisation has also led to widening of market coverage. A brief introduction to global logistics management has been made in this chapter to emphasise on operationalization of a firms' global supply chain.

scholarly journals E-business in Supply Chain Management

2011 ◽  
pp. 1820-1837
Author(s):  
Claudia-Maria Wagner ◽  
Edward Sweeney
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
The Internet ◽  
Research Needs ◽  
Rapid Rate ◽  
Ongoing Research ◽  
Chain Management ◽  
Trading Partners ◽  
Use Of The Internet

E-business is concerned with the use of the Internet to link companies with their suppliers, customers and other trading partners. As a business concept, it has evolved significantly since its introduction in the 1990’s in parallel with the rapid rate of development of information technology (IT) during this period. Supply chain management (SCM) is fundamentally concerned with integration of activities both with and between organisations. IT plays a crucial role in SCM as a key enabler of supply chain integration (SCI). This chapter sets out the role of e-business concepts in the context of the supply chain challenges faced by firms. It specifically explores the role of e-procurement as an example of how e-business concepts have been applied to one key SCM activity, namely purchasing and procurement. In this context, the chapter examines the nature and evolution of e-marketplaces and goes on to identify key adoption drivers and benefits based on recent research. This research identifies key adoption drivers and benefits but also recognises that there are many barriers that ongoing research needs to address if the potential of e-business is to be fulfilled.

scholarly journals Procedure for Modeling and Improving E-SCM Processes

2007 ◽  
pp. 1-21 ◽  
Author(s):  
P. Boonyathan ◽  
L. Al-Hakim
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Best Practices ◽  
Competitive Advantage ◽  
Real Time ◽  
Online Communication ◽  
The Internet ◽  
Process Mapping ◽  
Electronic Technology ◽  
Chain Management

Today’s managers are turning to the functions of the supply chain to improve margins and gain competitive advantage. The explosion of the Internet and other e-business technologies has made real-time, online communication throughout the entire supply chain a reality. Electronic supply chain management (e-SCM) is a reference to the supply chain that is structured via electronic technology-enabled relationships. This chapter concentrates on the development of a procedure referred to as eSCM-I for e-SCM process improvement. The procedure focuses on process mapping and relies on principles of coordination theory. It is based on SCOR to standardize the process and take advantage of this technique of benchmarking/best practices potential. The procedure employs IDEF0 technique for mapping the processes.

E-Business Supply Chains Drivers, Metrics, and ERP Integration

2018 ◽  
pp. 5345-5356
Author(s):  
Jean C. Essila
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Supply Chains ◽  
The Internet ◽  
Organizational Success ◽  
Chain Management ◽  
Driver Performance ◽  
The World ◽  
Performance Drivers ◽  
Erp Integration

The world of business is witnessing the emergence of electronic supply chains (e-SC). As more business is performed via the Internet, e-SCs are becoming an integral part of supply chain management SCM). With business via the Internet requiring different fulfillment approaches, traditional drivers of regular supply chains are no longer adequate for explaining how e-SC performance is driven. The task of SC professionals is more complicated than ever. This situation often leads to unsatisfied customers, which can force companies to close their doors. Therefore, understanding e-SCM performance drivers and their integration with ERP becomes a necessity. Little attention has been devoted to SCM performance driver evaluation. This article discusses the performance drivers of e-SCs and their integration with ERPs. SCM is among the most important factors to organizational success. Effective SCM can enhance competitiveness and increase profitability. Nevertheless, SCM professionals and other actors must understand the factors that undergird driver performance.

Business-to-Business E-Commerce for Collaborative Supply Chain Design and Development

2004 ◽  
pp. 272-288
Author(s):  
Reggie Davidrajuh
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Virtual Enterprise ◽  
Supply Chain Design ◽  
Business Rules ◽  
Design And Development ◽  
Chain Management ◽  
Strategic Model ◽  
Business Opportunities ◽  
Business To Business

SMEs form a virtual enterprise—a short-term loose integration, to meet business opportunities; managers of SMEs are looking for a tool that could help them design the strategic model of the supply chain in which they are collaboratively involved. Though the use of e-commerce tools has a lot of potential to improve an enterprise’s collaboration efforts with other enterprises, realizing an e-commerce tool that enables collaborative supply chain design and development is not easy, as collaborating enterprises may each use a different flavor of XML, multiple technology solutions, and have different business rules. This chapter presents a methodology for developing a new e-commerce tool to assist collaborative supply chain management. By this methodology, a new tool that is affordable by the SMEs and offers improved pipeline visibility could be easily implemented.

Supply Network Planning Models Using Enterprise Resource Planning Systems

2010 ◽  
pp. 605-620
Author(s):  
Sundar Srinivasan ◽  
Scott E. Grasman
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Enterprise Resource Planning ◽  
Transition Period ◽  
Resource Planning ◽  
Information Structures ◽  
Chain Management ◽  
Planning Models ◽  
Supply Chain Costs ◽  
Trading Partners

The advent of the Web as a major means of conducting business transactions and business-to-business communications, coupled with evolving Web-based supply chain management (SCM) technology, has resulted in a transition period from “linear” supply chain models to “networked” supply chain models. Various software industry studies indicate that over the next five to seven years, interenterprise business relationships, information structures, and processes will evolve dramatically. Enterprises will blend internal production and supply chain processes with those of their external trading partners. Currently, organizations are finding creative ways to mitigate supply chain costs while maintaining operational efficiency. New approaches, technologies, and methodologies are aiding with these cost-cutting measures to drastically reduce supply chain costs and increase customer satisfaction. This chapter discusses the background of supply chain planning and execution systems, their role in an organization, and how they are aiding in collaboration. The chapter concludes with a case study on how a supply chain management system could help an organization be more effective.

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