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 Navesink Logistics Review: Dec. 2005 - Volume 2, Issue 19

 E-Commerce: A Multifaceted Business

Karen Hawks, VP Supply Chain


Often when E-commerce is bantered about the first thing that comes to mind is Internet sales as an extension of retail and/or catalog mail order sales. Indeed E-commerce is sales via the web. However, in general E-commerce is so much greater and valuable than just web sales. E-commerce also includes web portals, as well as trading partner viability.

The mechanics of building a robust website:
First, it is important in today’s business environment to have a website for legitimacy purposes. Most customers or trading partners will immediately request a web address. Second, the website can be as simple as information of products, services, solutions and the like. Or it can be as complex as to provide product links with detailed information, photos, warranty information, product manuals, etc. Next, is to consider if the website will be used internally as well as externally, the elements needed for data transmission and how to transmit, and will web portals be used.

Building blocks for the website:

· What are the primary business objectives of the site and who is the target audience? For example, will it be used for marketing, corporate information, product selling, etc?

· Next, are the target specifics for the site. When will it be launched? How often should updates occur depending on the listed above objectives, this could be daily, weekly, monthly or a combination of all frequencies. In addition, it is important to have a strategy for future web expansion. This can be database, products, due to client requests or other reasons. But at initial build scalability is important.

· Determine the look and feel of the website desired. Will it look similar to competitors in the industry or will it resemble sites from other industries that seem user friendly or aesthetically appealing?

· Site content is the next major component of building a robust website. Features and functions should be clearly defined for ease of display. For example, general maneuverability such as a site map, FAQ’s, information about the company and its history, news and/or press release documentation, as well as stock information. Finally, it is imperative to have contact information so potential customers, trading partners, and others are able to locate and reach your company.

· Next is the technical aspect of the website. What are the color scheme requirements? Should there be “flash” functionality to provide customers an “experience” of your company? But even more important is the URL or domain name which must be registered, the hosting of the site as well as the operating system, protocol language and bandwidth needed to successfully operate the web site. Not less important, a robust website will have full integration to other company systems whether ERP or accounting or all systems. This is particularly true if credit card processing is a website function.

· Finally, when creating a hearty website things to consider are:
· Dynamic Content
· User Registration
· User Login
· Mail a Friend
· Shopping Cart
· Survey
· Online Polls
· Newsletters
· Search

Web Portals:
The first determination is whether a web portal can be erected within a current module of an ERP system or if the portal must be built from scratch. In either case these portals are an extension of the overall website and are used primarily to communicate with customers and trading partners where detailed specific information is needed to be disseminated. Examples of the types of information that would be available via a portal are routing guides, compliance programs, technology protocols, required metrics, and specialized reporting such as supplier performance.

In addition, the portal may be used for other alliance partner functions to establish collaborative commerce. In fact web portals which are functionality rich in nature can make a difference as to suppliers and customers doing business together.

E-Commerce Technology:
The use of the web to transmit information is critical in today’s business environment. Those businesses once too small to participate due to size can now play on a level field. If the company is extremely small they may still trade using FTP or what is known as a file transfer process. Whereas FTP is simple and not costly, it is less secure in file transmission and does not require authentication of data. The preferred methods of transmitting data are EDI either via a VAN (value added network) or the latest AS2. Information is secure and may be transmitted in multiple formats including XML, HTML or other. EDI type of information is “mapped” between trading partners within industry standard transaction sets using specific elements to represent specific data.

The newest form of data transmission is known as RFID or radio frequency identification. Beyond the initial hype that was touted by major retailers, CPG giants and the government, RFID is methodically taking hold in all industries. Thus when considering e-commerce technology RFID should be among the considerations discussed.

Web sales:
There are several things to keep in mind when creating a website for the purposes of sales. For example, customer information in a B-to-C is usually large; therefore the need for database management is extensive. Interfaces are significant as well. The website will need to feed to internal systems, such as forecasting, order management, and accounting, but the data also needs to be transmitted to carriers, CRM tools, internal WMS or 3PL provider systems. The tables for all this data can become enormous.

In addition, when selling via the web, determine if there is a need to link sales channels. One case in point is a nationally recognized electronics retailer that has a current promotion suggesting that orders on the web will be ready for pick up at the customer’s local store with 30 minutes of placing the order. Wow. What a way to win customers in this age of instant gratification!

Conclusion:
Generally speaking E-commerce is so much greater and valuable than just web sales. It is the gateway to customers, trading partners, and current sales channels. It is an all encompassing place for knowledge and information exchange about the company, its products, its services, its solutions and its partners.

For web development or for enhancements to a current website call the professionals at Navesink Logistics, Inc. 732.671.5746.

Your comments are welcomed and appreciated. We look forward to hearing from you.

References:
1. Koland Technologies How to prepare for building a website. 2004. www.kolandtech.com
2. Best Buy partner web portal www.extendingthereach.com
3. Ditan Access customer portal www.ditan.com
4. Navesink Logistics, Inc. “share it” project management information portal www.navesinklogistics.com

 
 Happy New Year!

Thomas McKenna, President Navesink Logistics, Inc.

 


We would like to reflect on another year gone by and give thanks to all those who made this a successful and prosperous year. To our clients, alliance partners, and our hard working contract project workers, we thank you for all that you did in 2005. We wish you and your loved ones the joys of this holiday season.

Happy New Year as we look forward to continuing to service those in search of preeminent consulting services, supply chain and IT integration work. To everyone a healthy and prosperous 2006!

Thomas McKenna, President Navesink Logistics, Inc.


Navesink Logistics, Inc. Phone: (732) 671-5746
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