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electronic trade precaution ITECH7606 Case Study insure Student Name Kuruppu Dilshan Rodrigo Student ID 30094858 1 ELECTRONIC COMMERCE forethought 30094858 Executive Summery In this case study i am critic to each one(prenominal)y evaluates all aspects of an Coles Pvt Ltd that engages i electronic commerce or electronic lineage and communicate these key issues though this report base on under mention topics.Brief introduction round Coles and infrastructure, current mechanismation of the profits in Coles group, description about an affect has made lucre on this cheek and also different business models which they use to improve their deviate all send and node relationship. Identification of order chains and i am going to handle some of the problems that specifically might encounter electronic supply chain vigilance , identify suppliers, make payments, accord approachability of supplies, automatic reordering of supplies through discoverd brasss, track order pro gress, collaborative demand planning and forecasting.I cast off mention about few follow throughations which regards to e procurement and activities. Different types of e-marketing method which coles use to compete with some other support giants such as Woolie , different techniques have been use in my selected musical arrangement and how electronic communication to differentiate crossways and answers. Finally some of the change management issues that they have faced during past years. 2 ELECTRONIC COMMERCE management 30094858 Index Page No door 03 Body 04 Conclusion 15 Reference 16 3 ELECTRONIC COMMERCE MANAGEMENT Introduction 30094858 In 1985 G.J Coles, primarily a Melbourne-based supermarket chain, immingled with Myer Ltd, an upmarket Melbourne de helpingment storehouse, go Coles Myer Ltd. The merger was brought on by an expectation of significant cost savings from sharing supporters and overheads such as purchasing, w arhousing, information technology and property. as yet these benefits never occurred. Coles Myer was burdened with poor management, bad strategic decisions, and internal conflict. Their care price was faltering, and lagging behind their biggest competitor Woolworths, and profit had been stagnant for common chord years.In September 2001 the board appointed John Fletcher as chief executive, head known for his part in turning Brambles into a successful worldwide company. Fletchers first priority was to do something about Coles Myers share price, withal he recognised that to be able to change it he must first deal with the companys strategic and geomorphological problems. This analysis of schemeal design and utileness lead discuss the issues experienced by Coles discussion of theories related to the these problems and possible solutions, an examination of what is being do, and what else could be done to improve the situation.The writ of execution of common ,centralised IT and surgical procedurees throughout the Coles Gro up would play a significant role in their future success. Using common bundle and procedures will incr moderation communication and coordination, and reduce organisational complexity. A centralised system is well suited to the Coles Group, and it will enhance control and monitoring authoritative cultivatees in a machine bureaucracy. Leifer (1988) asserts that effective performance of centralised calculating machine business information systems requires rules and policies that match the tasks of the machine bureaucracy organisation, supporting this statement.Moving to a centralised system would appear to be a significant change, however Rockart and Scott Morton (1984, cited in Leifer 1986 p 66. ) call back implementing a centralised system in a machine bureaucracy requires few changes on part of the organisation. 4 ELECTRONIC COMMERCE MANAGEMENT 30094858 While online shopping in the grocery and liquor market represends completely a small equilibrium of total food and drink gros s revenue in Australia it is growing significantly. Coles Online saying a doubling of sales in 2010. Coles sells liquor online through our Liquorland discipline and Vintage Cellars Wine Club.We have experienced emersion in sales in the online liquor market as we have seen in groceries. In the to a greater extent mature online grocery shopping markets, such as in the UK, online shopping represents about 4 per cent of the food and drink market, and it is judge to grow to 12 per cent by 2014. 2 Coles does non inhabit material employment impacts in its business from the growth in online retail. The growth in online retail has lead to an increase in employment to service the online market. Online purchases are picked from the existing supermarket shelves and require drivers to pitching groceries.When Coles first started online sales, dispersal heart and souls were used to pick and acquit groceries. Now, Coles online operates out of selected supermarkets Presently every organiza tion has coarse impact on internet quite a lot of businesses merge into online business. coles group introduce their first web page long judgment of conviction ago, due to rapidly changing technology and challenges they move out and implement according to overcome and withstand modern word technical challenges withal at the moment coles web page run by aspx which is set up dynamic web rather than static web pages which is display only information to customers.Fig 01 5 ELECTRONIC COMMERCE MANAGEMENT 30094858 Above figure of speech 01 show how dynamic web page work technically. Even though it seems to be quite easy but t here are public figure of information technology master minds work at back distributor point 247 to provide secure and reliable service to customers. Coles implemented rich interface page using latest web evolution technology to provide wide range of facilities to their customer. Online shopping through the Coles Online instigator began in 1999 with delivery across the Sydney and Melbourne metropolitan areas.The service was initially cut back to the Sydney and Melbournemetropolitan areas as the service was run out of a distribution centre in each capital city. The online service moved out of distribution centres into six stores across Sydney and Melbourne in 2008. In 2010, our online service expanded to all States and Territories in order to respond to customer demand. Now Coles Online services over 85 per cent of Australias population with delivery in all capital cities and major towns. Coles online businesses offer four types of services Home delivery Delivery to your doorstep or kitchen bench via refrigerated van worry delivery Delivery to offices and a wide variety of other organisations requiring groceries outback(a) delivery Delivery to remote areas of the NT, WA and far north Queensland. contrary customers of Coles historically ordered via telephone or fax with their own courier arrangements in place (road, rail, barge or air). This has been transitioned to full visibility of a virtual supermarket on the internet with significant benefits all round solicitation Customer lay awayion of groceries ordered online either at a designated Coles Supermarket or another location with chilled storage facilities . ELECTRONIC COMMERCE MANAGEMENT 30094858 Coles Online features A huge range of all popular supermarket items (covering 22,000 SKUs) Online exclusive specials Weekly entry specials Unique carrefour offers such as Fruit & Vegetable Boxes and make out Your Own Hampers Personal account areas to manage your orders and create custom lists transmit Shop search functionality Fresh and easy recipe ideas Seasonal product range flesh out product information and nutritional information A convenient range of delivery time slots FlyBuys points.You can continue to collect 2 standard FlyBuys points for every $5 you top with Coles when you register your FlyBuys add in My Account. 7 ELECTRONIC COMME RCE MANAGEMENT 30094858 The lucre can booster companies create and capture profit in unsanded ways by adding extra value to existing products and services or by providing the foundation for sore products and services. The Internet Business models are generality of what and how the enterprise delivers product or service, showing how the enterprise creates wealth by taking advantages of the Internets rich communication capabilities.They provide the customer with a new product or service They provide extra information or service along with a traditional product or service, or they provide a product or service at a much lower cost than traditional means. How do these organizations business models fix the way they market themselves? How does the target market learn more(prenominal) about this rank? Coles online have business models that rely entirely on internet transactions. They wishing to create volume sales as efficiently as possible. in that locationfore, they have done e verything they can to direct letr traffic to their sites regardless(prenominal) of their product.Through referral sites, online advertizement and most importantly web services, they have been very effective at this goal. They have expanded via third parties to increase their web presence. Consumers learn more about both of these sites almost automatically if they search for a product on the web.. AZ is not a revenue targeted site, but they belike prefer more AZ consumers using their online services. I have seen associate to their site on other web sites, primarily AZ news themes online. bring up benefits of this site to the organization and to the sites visitors.The benefits of viragos and EBays sites to their respective organizations should be obvious from the other answers. These businesses are entirely web-based, so they would be non-existent without the site and its visitors. All of their revenue, brand intelligence and orbicular presence comes from their sites. Unlike hy brid retailers like Walmart or Target, you will likely never see an Amazon physical bricks and mortar store. The benefits to the consumers of Amazon and EBay are the wide array of products that can be 8 ELECTRONIC COMMERCE MANAGEMENT 30094858 purchased and shipped directly to their home.Used products, unusual products, competitive pricing, the big businessman of database probing and one stop shopping are also benefits of both sites. With AZ, the benefits to the organization are mostly in servicing costs. It is much cheaper for Arizona disposal if everyone in Arizona renews their drivers licenses online. Also, Arizona wants to grow, both in issue of residents and number of businesses. By providing a central site for prospective residents and business owners, the AZ site might attract some more residents and businesses. The benefits of AZ to consumers is the ease of performing Arizona services online.Using myself as an example, I seek to do anything possible online, rather than dr ive to or call a service center. I have renewed my drivers license at the AZ site as well as downloaded tax forms and applied for duplicate vehicle titles. When we look at this organization as a whole , i would be able recognize there two different business models involves in their business process such as B2C business to customer It applies to any business or organisation that sells its products or services to consumers on the internet for its own use. About one fifth of e-commerce takes place in the midst of businesses and consumers.B2C is of greater interest to the public, because most of the online buyers are people (in millions) and not organisations. On the other hand B2B business to business It involves companies buying from and selling to each other, on the internet. In other words it is commercial activity amid businesses. Online B2B is growing fast in both horizontal and vertical markets. In a horizontal market, companies in one industry sell to companies in other indu stries, whereas in a vertical market business takes place among companies operating in the same industry in a in series(p) supply chain.Under the B2B process, a superiorer level of collaboration amid retailer and supplier is infallible. In particular this will affect both Coles and suppliers IT systems and business processes. Trading via B2B resultants in these three outcomes ? Cost effective Administration 9 ELECTRONIC COMMERCE MANAGEMENT ? ? Timely Outcomes genuine Processes 30094858 In its simplest form, B2B written documents follow this approach All orders placed by grocery Holdings Pty Ltd (GHPL), the wholesale operation servicing our retail Brands, will be transacted this way. soon the following are out of scope for the B2B program ? Direct to store deliveries ?General Merchandise Cross-dock deliveries to GHPL ? Deliveries of Fresh Fruit & Vegetables and Fresh Fish ? haphazard Weight items The Benefits to suppliers of moving to B2B 10 ELECTRONIC COMMERCE MANAGEMENT 30 094858 There are many benefits for both suppliers and Coles by moving to B2B trading processes. though not all may apply to every supplier here is a list of the more commonly known benefits Electronic communicate is a fast, accurate and versatile way for passing information between trading partners systems enabling better business decisions to be made. The speed and accuracy of the run over backpacking process leads to a reducing in pick errors.This results in a reduction in claims for anomalous delivery quantity that occur when a manual picking process is used. The introduction of the electronic invoice (eI) means that the occurrence of lost paper invoices ceases. This, in turn, improves the average days outstanding of supplier invoices. GHPL DCs prefer to deal with amenable suppliers because of the labour savings B2B generates. DCs have cost budgets too, and it makes sense for them to schedule deliveries at the cheapest times to process them (i. e. during standard business hours, wherever possible).The B2B process enables information such as batch codes and use-by dates to flow from system to system easily and accurately, and this helps ensure customers consume goods at their freshest. Moving to B2B with Coles means suppliers will trade using a single, uniform process across all Coles brands. Suppliers who already trade with other retail business (e. g. Kmart, Target or Officeworks) will be beaten(prenominal) with the B2B process, as these businesses have been using B2B exclusively for many years. The web-based TPM system enables suppliers to eyeshot their PO, ASN and ADM, in significant time, day or night.B2B improves sales for both Coles and suppliers because the genus Poa enables Coles National Inventory Team to order additional stock for items not fully supplied on previous orders. 11 ELECTRONIC COMMERCE MANAGEMENT 30094858 Faster truck turnaround time occurs because DCs scan bewilder the stock into their systems, as opposed to the old manual process. B2B compliant suppliers are already talking to their transport Six timbres to performance The following steps outlined in the following pages have been designed to help you implement a B2B eCommerce solution.Auditing your current internal processes will help you determine how much work is required to prepare you for the B2B process. You may have already partially completed some of these steps, which can be discussed nevertheless with your eCommerce Implementation Team member, to confirm your requirements. The 6 steps are 1. ramble Initialisation 2. Research and Plan 3. Install and Test 4. End-to-End institution and Accreditation Testing 5. fuck Over and Go Live 6. Monitor Step 1 Project Initialisation As a supplier to GHPL, you may have been approached directly by Coles to participate in the B2B eCommerce program.This approach may have taken the form of . . A request for a private meeting Direct mail and follow up We will discuss the B2B requirements, operational pro cesses and the steps needed to implement the B2B process. Specific business objectives and required timelines will be detailed. 12 ELECTRONIC COMMERCE MANAGEMENT 30094858 If a face-to-face meeting or conference call is organised consider bringing the following participants ? ? ? Account Manager(s) Technical staff (internal or consultants) supplying Chain staffStep 2 Research and Plan Once youve hold to implement a B2B eCommerce solution, you need to think about how you will implement it and what you need to do to set up your solution. This step is very important and you should spend the time necessary to get it right for your business. Research involves . . . . Assessing your current processes, systems and boilers suit direction Evaluating potential solutions (if none have previously been implemented) Scoping, costing and selecting a concluding solution Familiarisation with the planning and testing functionality provided by the CMT.Understanding the change management requirement s within your business given the required process changes to implement B2B Preparing an implementation plan that establishes your readiness to trade electronically in the required timeframe. 13 Step 3 Install and Test This step will variegate greatly from supplier to supplier depending on your size, type of merchandise, solution provider and current infrastructure. Typically during this phase you will Install any additional or upgraded hardware and software. Test communications and all the B2B documents as part of your systems development cycle.Define, confirm and test re-engineered processes from receipt of order to despatch. All document validation will be facilitated via the use of the CMT. When youve completed this step, you will be ready to undertake a complete set of End-ToEnd test scenarios (from electronic order to eI) with Coles prior to being accredited. Step 4 End-to-End organisation and Accreditation Testing During this step several test scenarios will be performed com mencing with an electronic test order and ending with an eInvoice. You will be required to receive and process a test order as if it were a real order.Contents of the order must be validated prior to picking and packing All suppliers are required to respond with a POA for every PO on the day it is received. The packing process must result in SCM Logistics labels and ASN(s) being generated. You will not be required to deliver the stock ordered on your test orders. The ASN is transmitted to Coles and the SCM Logistics labels are sent to the eCIT for verification. 14 ELECTRONIC COMMERCE MANAGEMENT The eI is transmitted to Coles. An ADM will be sent to the supplier to advise that NIL stock was receipted. 0094858 B2B accreditation is achieved when you have successfully completed all the steps in the CMT. Step 5 Cut Over and Go Live Your eCIT team member will channel you through a comprehensive Go Live Checklist as the final check that all elements of your change to B2B have been underst ood and considered. Commencing on the agreed Go Live date, Coles will expect all orders to be neat using the B2B process. The eCIT will advise relevant Coles receiving locations of the date you expect to initiate live B2B deliveries.Step 6 Monitor This is an ongoing process. Coles will randomly check and monitor your delivery performance to ensure that integrity requirements are maintained. Detailed checking will initially be quite intensive until the system has ceremonious your process integrity. 100% integrity will result in less checks being performed, however, deliveries with errors will increase the level of checking. Increased checking will lessen processing down considerably and increase processing costs proportionately. 15 ELECTRONIC COMMERCE MANAGEMENTConclusion 30094858 Finally, adopting e commerce to Coles has done huge impact on whole organization in various ways, letting more opportunities to interact with customer, receive feedback and record data by using Flybyes wherefore introduce customised range of products according to sessions and personal interest of the year. Using high technical business system to make life easier for top to butt end management and smooth run of organization to provide better customer satisfaction on the other hand increase their productivity and revenue.Bargaining power of buyers To strengthen the relation between buyers and suppliers using high software investments were things in the past. Modern technologies allow forward and backward incorporation in the value chain. Coles is one of the challenging competitor for all other retailer ,i believe Coles is top in the Australian retail industry. 16 ELECTRONIC COMMERCE MANAGEMENT References Books ? 30094858 Burton, R. M. , Lauridsen, J. Obel, B. 1999, Tension and Resistance to Change in Organizational clime Managerial Implications for a Fast Paced World, Retrieved April 26th, 2007 from Wood, J. Chapman, J. Fromholtz, M. Morrison, V. Wallace, J. Zeffane, M. Sc hemerhorn, J. Hunt, J. Osborne, R. 2003, disposalal behaviour a global perspective, 3rd edition, John Wiley & Sons Australia Ltd, Milton Qld ? Leifer, Richard 1988 interconnected Computer-Based Information Systems with Organizational Structures, MIS Quarterly, Vol 12, no 1, pp 66. ? Rockart, J. and Scott Morton, M. 1984 Implications of Changes in Information Technology for Corporate Strategy Interfaces, Vol 14, no 1, pp. 84-96, cited in ?Leifer, Richard 1988 Matching Computer-Based Information Systems with Organizational Structures, MIS Quarterly, Vol 12, no 1, pp 66. Journals ? Simpson, Kirsty 2006 Coles drops Kmart, Bi-Lo, The Age, August 1st, 2006, Retrieved April 26th from ? Robbins, S. P and Barnwell, N. S. 2006, Organisation Theory Concepts and Cases, Prentice Hall, Sydney 17 ELECTRONIC COMMERCE MANAGEMENT Websites ? www. theage. com. au/news/business/coles-drops-kmartbilo/2006/07/31/1154198073979. html ? 30094858 www. lok. cbs. dk/images/publ/Burton%20og%20Obel%20og%20Lau ridsen%20tensio n%202000. pdf 18