Discuss how E-commerce can reduce cycle time, improve employees' empowerment and facilitate customer support
E-commerce use to conduct business transactions among buyers, sellers, and trading partners without human intervention by electronic Information Technology. Confessedly, E-commerce brings a lot of advantages in trading segment. Generally, an efficiency business’s objectives are to earning high profit with low cost. E-commerce can reduce cycle time, improve employees’ empowerment and facilitate customer supports that help company to reduce cost, increase productivity and obtain competitive advantages.
Cycle time is defined as the time it takes to provide a service from beginning through completion. Traditionally, time is wasted through queue, processing paper-based purchase order, transferring goods from contributor to seller and many other activities. Using E-commerce can eliminated such non-profitable activities and reduces cycle time. Moreover, E-commerce can use to eliminate intermediaries between sellers and buyers which are also known as disintermediation who not only increase cost of goods but also raise the time where the customers have to go through intermediate person. Overall, reduction of cycle time can decrease carrying costs and shrinkage costs, improve in cash flow and increase competitive advantage.
Employees’ empowerment means giving employees responsibility and authority to make decisions for the company behave regarding all aspects of business transactions. Employees are company’s important assets. E-commerce can lead to employee empowerment by offering online training without taking leave and travel around, providing employees access to information through intranet and keeping good communication between company and employees. With this, company can enhance employees’ satisfaction by knowing they needs and thus increase their productivity. Training cost and cost use to solve employees’ problems can be reduced.
To be successful in business, customers are an important factor.E-commerce can provide excellent customer support system for company in order to attract more customers and retain current customers. The common tool in a company website is FAQ that help to answer customer question about company product or services. Other than that, some companies provide a special function to increase customer satisfaction such as allow their customer to design their own products to increase their customer satisfaction. Besides, shopping cart allows customers to track back the products that they selected and produce the order once. Today’s customers not only can frequently view the updated products through online, the order also can be placed faster in a few of minutes and the product required can be delivered faster on the hand of customer.