A guideline for the adoption of order processing for B2b e-commerce

Abstract

This research investigates the ordering process between small suppliers and retailers and the role of the Internet in this process. Product ordering and fulfilment are both important components of a supply chain, of which suppliers and retailers are members. The Internet as an enabling technology has an important role to play in supply chains and therefore also in order processing. Internet technology facilitates Business-to-Business (B2B) transactions. Retailers and their suppliers collaborate to align production with customer demands. Internet-enabled B2B supports this collaboration between businesses, allowing them to gain knowledge about customer demands real-time. This enables them to determine the impact of these demands on their operations. Using the Internet has the advantage that it provides an ever present link that is less costly than private networks and Electronic Data Interchange (EDI). When the Internet is used to facilitate trade and commerce between businesses, ecommerce is established. With Internet-enabled B2B (or B2B e-commerce), multiple suppliers are connected to multiple customers. This reduces production cycle times, reduces inventory, improves speed and quality of communications and reduces costs. This research investigates suppliers in the retail supply chain and focuses more specifically on small businesses due to their reported importance in the South African economy. They provide employment to a large portion of the country's population and contribute almost half to the economic activity. Small suppliers form part of supply chains and have to adhere to the demands exerted by larger supply chain members in order to be included in such supply chains. Small suppliers have just as an important role to fulfil in supply chains as larger companies. Small suppliers are also responsible for connecting and integrating supply chain members and in so doing, reduce costs.