Page 117 - BA1 Integrated Workbook STUDENT 2018

Customers, suppliers and supply chains

3.4 Uses of IT in the downstream supply chain management

 Electronic data interchange (EDI) – link our sales system to the purchasing
system of major customers.

 E-commerce – sell online to customers. May also allow disintermediation.

 Intelligence gathering – through monitoring of online transactions, online
surveys.

 Communication – email and other IT systems will allow us to keep in touch
with customers.

 User communities – allow users to support each other.

 The use of intranets and extranets – to share information within the
organisation as well as allowing partnerships with suppliers and customers.

3.5 The impact of IT on the structure of the downstream supply chain

 Disintermediation – remove intermediate stages from the supply chain

 Reintermediation – the creation of new intermediaries in the supply chain

 Countermediation – creation of new intermediaries in the supply chain in
response to rivals doing the same

Illustrations and further practice

Now review Illustrations 4 and 5 as well as TYU 4, 5 and 8 in Chapter 11 of the
text.

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