Business-to-business (B2B) transactions were (and still are for some companies) based on a complex network of inter-connections, with every connection being different for each supplier or buyer. Errors of transactions, such as stock quantity and type, were commonplace.
However, the Internet has provided a means, compared to EDI (Electronic Data Interchange), in making transactions flawless, easier and more profitable.
"The Internet and the World Wide Web provide significant opportunities to make business-to-business more effective and efficient. The impact ranges from cutting the cost of paper and mailing, to shortening the time-to-market of products due to better supply-chain management"
Segev has provided the most appropriate explanation of just what the Internet is doing to business-to-business commerce.
The Cisco Systems Inc. website is a prime example of what can happen when the barriers of information, product and services are eliminated. [1]
Before the website the order and delivery system seemed almost primitive.
(2) 1 in 3 were rejected due to errors,
(5) and at least 3 days processing time.
The expenditure on their previous system was down to their inadequate paper system and human error, both eliminated by their website ordering system.
(1) maximum order-to-delivery is 3 days,
(2) impossible to enter mistakes on order,
(3) a delivery date can be provided by 1 hour of the submittal,
(4) orders, payments and reconciliation of returns against invoices can be tracked.
Their new system allows buyers to optimise space, knowing the date of the arrival of their goods, also they get exactly what was supposed to be ordered, as it is impossible for the employee ordering to enter any mistakes.
The advantages to Cisco Systems Inc. allowed them to reduce costs for documentation, technical support, configuration and order entry. Their savings have amounted to $230m a year. [1]
However Cisco had to s...