The Economic Impact of Business to Business E-Commerce and the Value Chain

Wal Mart

One company which comes to mind is Wal � Mart. This company has an efficient

VCM in the retail sector. What struck me about this company is that the company leverages its information technology

infrastructure based on its point of sales systems and its data warehouse to help its suppliers manage their product

on wal � marts retail shelves. By providing the suppliers with direct and up to date information about the products

they are selling, the company is able to demand massive discounts and rapid replenishment, which is the main competitive

advantage in this market. I often wondered how Wal � Mart has become the efficient leader in this area.

Then I noticed what they had done. They had eliminated nonelectronic processes such as paper reports etc and

implemented online web based access to value chain data for all users in the process. This has effectively reduced

the time to decision barriers and empowers the company to make decisions based on timely information and to write

out costs efficiently. After realising what this company did it then got me thinking as to why other companies didn�t

do the same, I found out that it wasn�t as easy of a process as it was made out to be. There is a lot of time and effort

involved in the process of eliminating the nonelectronic processes and implementing online. I found that it

involved pre � sale activities such as awareness, interest and desire. There are also sale activities which involve

ordering, verifying and delivery the product to the buyer. These are known as the 9 links.

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