The Effects of the Internet Adoption in Customer-Supplier Relationships

Download or read book The Effects of the Internet Adoption in Customer-Supplier Relationships written by Stefano Ronchi and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the last years a great attention has been paid to the potentialities related to the Internet adoption within business processes. Firstly, the introduction of web-based technologies led to the e-commerce paradigm: companies started to adopt the new technologies in order to enter new markets, to enhance revenues in existing ones and to supply better customer services to the final consumer. Soon the e-commerce became e-business due to the interaction of the new technologies with all processes within the company. As a matter of fact, also processes going beyond the boundaries of the firm are influenced by this trend and in particular the relationships among companies within the supply chain are changing in order to face new threats and opportunities. As far as the relationships across the supply chain are concerned, the Internet seems supporting two apparently contrasting trends. On the one hand, standardization and market mechanisms are emphasized through electronic catalogs, auctions and liquid exchanges. On the other hand, there is the opportunity to enhance the value added with higher customization and to improve supply chain performances with close relationships through new technologies, which make integrable different companies' information systems. At a first glance, it could be hypothesized that the first trend should support indirect or MRO (Maintenance, Repairs and Operations) materials purchases; while the second trend should support direct or customized materials procurement. In reality, the consequences of the introduction of the new technologies are rather complex and, although they do not change dramatically traditional business concepts, their influence on supply chain management and companies' relationships is not easy to analyze. The Internet changes the nature of traditional relationships and leads to new possible configurations. Those changes are allowed by the technology, but its introduction will not be worthwhile if it is not supported by an integrated analysis within the company and beyond it, upstream and downstream in the supply chain. This implies the reengineering of processes, organizations and managerial configurations. Performances of processes across the supply chain are strongly influenced by these interactions between new managerial and organizational configurations and new technologies. There is not a deterministic one-way impact of one of these two areas on the other, but their development is mutually fostered and supported by each other.