Electronic and Mobile Commerce - Principles of Information Systems - page 317

history, and some order details. For example, if the customer later contacts the supplier to
complain that not all items were received, that some arrived damaged, or even that the
product provides unclear instructions, all customer service representatives can retrieve the
order information from the database via a computing/communications device. Companies
are adding the capability to answer many after-sales questions to their Web sites, such as how
to maintain a piece of equipment, how to effectively use the product, and how to receive
repairs under warranty.
The preceding sections discuss how a successful e-commerce system must address the
many stages that consumers experience in the sales life cycle. In addition, looking at an
e-commerce system from the perspective of the provider of goods or services, the system must
support the activities associated with supply chain management and customer relationship
management. These aspects of the e-commerce system are discussed next.
Supply Chain Management
As mentioned in Chapter 2, supply chain management (SCM) is increasingly accomplished
using the Internet exchanges. An organization with many suppliers can use Internet exchanges
to negotiate competitive prices and service. SCM is becoming a global issue, as companies
have parts and products made around the world. 8 One example of an electronic marketplace
is Aviall, a wholly owned subsidiary of the Boeing Company that provides after-market
supply-chain management services for the aerospace, defense, and marine industries. Aviall's
mission is to be the global leader in aircraft parts sales through world-class customer service
to every customer, every time. The firm markets and distributes products for more than 225
manufacturers and offers approximately 1 million catalog items from 39 customer service
centers located in North America, Europe, and the Asia-Pacific region. Its Inventory Locator
Service (ILS) unit provides buyers and sellers immediate access via its Web site to aircraft and
marine inventory 24 hours a day, seven days a week. Some 20,000 ILS subscribers around
the globe access the ILS databases 60,000 times per day to complete transactions, from pur-
chase initiation and order tracking to fulfillment. Subscribers can negotiate online, place
orders, send and receive purchase orders and invoices, and track their negotiation history.
Over 3,500 customer shipments are created daily. 9
Customer Relationship Management
As discussed in Chapter 2, customer relationship management (CRM) involves managing
every aspect of an organization's interactions with its customers or clients including marketing
and advertising, sales, customer service after the sale, and programs to retain loyal customers.
CRM systems enable a company to collect customer data, contact customers, educate them
about new products, and actively sell products to existing and new customers. CRM systems
can also obtain and analyze customer feedback to help design new or improved products and
services.
Superior Industries manufactures a complete line of portable and stationary conveying
equipment used in ship, barge, and rail loading and unloading applications for sugar, rock,
coal, and wood. The firm markets through a dealer network serving the United States and
Canada, and recently established an international presence by installing equipment at mines
in Chile, Russia, Israel, Aruba, and Mexico. Superior employs 300 people at its Morris,
Minnesota, headquarters with additional manufacturing operations in Prescott Valley,
Arizona. Superior uses a CRM system to keep information about its distributor and dealer
networks, generate quotes for customers, store customer lead and contact data, and save every
quote and document associated with the sales process. 10
E-Commerce Challenges
A company must overcome many challenges to convert its business processes from the tra-
ditional form to e-commerce processes, especially for B2C e-commerce. This section sum-
marizes three key challenges: 1) defining an effective e-commerce model and strategy, 2)
dealing with consumer privacy concerns, and 3) overcoming consumers' lack of trust.