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Business Benefits
By using the Internet, we achieved the connectivity needed at a low
cost. Data exchange between business partners reduces duplicated data
entries and errors. It enables us to further incorporate business
processes to fully automate processes in supply chain management.
This fully automated process can have a great impact on business cost.
Information is easily disseminated to the business partners and this
shortens the turnaround time for purchase order confirmation by suppliers.
The ability for business partners to exchange information will foster
further collaboration among them. Today, the demand of goods and services
fluctuate rapidly requiring us to be flexible and many companies are
adopting flexible manufacturing to reduce inventory. With shorter
product life cycles, organisations have to maintain low inventory
level to reduce the risk of obsolescence. Collaboration between manufacturers
and suppliers is necessary to achieve this goal.
Successful companies have to exploit the Internet and other information
technology to be able to compete in this new economy. Data exchange
is very important in E-business.
For data exchange to take place, the data have to be separated from
the processes. A standard such as XML enables wider interoperability
among business partners.
References
Andy Tan
andytan@intrinix.com
Intrinix Networks Pte Ltd
This article is publish in June/July issue of Today's Manager. It
is a bi-monthly publication of Singapore Institude of Management (www.sim.edu.sg/todaysmanager)
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