JNB330 Supply Chain Management

1. Intranets are used in the marketing field because they offer several key advantages to a company. First, intranet support distribution and transmission of information to offices in different parts of the world (Chaffey, 2015). Therefore, communication within a company is enhanced by the Intranet that helps in promoting the decision-making processes. The quick sharing of information also helps in significantly reducing the product life cycles. Information is shared during the product development period that enables all the concerned parties to pay attention to all details, leading to a quality product. Further, marketing campaigns are created on time during the product development process that increases the process of getting the products into the market. Intranet enables restructuring of value chain network because it improves the customer services offered by a company. The staff in a company can access customers over the web services, which help in creating personalized and responsive support to the clients. Such feedback and support to the customers increase the number of clients. Also, the departments are interlinked using intranet services that help to provide customers with information ranging from the manufacturing process to other support issues. The Intranet services also save cost through training, improving employee directory, the creation of employee helpdesk, and employee incentive scheme (Chaffey, 2015; Barão, de Vasconcelos, Rocha, & Pereira, 2017).). The employees within the company can utilize Intranet to view the available resources and make bookings to resources such as meeting rooms that are essential for saving time and avoiding conflicts. Companies can utilize the Intranet to create anonymous reporting for good or bad conduct that either needs to be punished or rewarded. Using these examples, it is clear that Intranet helps in saving time, costs, improving workflow within a workplace, and effectively utilizing resources available in the company.

Extranets are mainly used in the supply chain management because they facilitate the ordering of resources from the suppliers that are transformed into products distributed to customers. The first benefit that businesses enjoy by using extranet is the sharing of information through a secure environment. For instance, information needed by the suppliers, marketing agencies, and other stakeholders is shared through Extranet (Chaffey, 2015). Such information is shared through a database that requires logins to access the list of products to be supplied. Extranet significantly reduces the cost of operating a business (Spralls III, Hunt, & Wilcox, 2011). This cost reduction is achieved as business eliminate the use of middle-men when purchasing the raw materials or requesting a supply of products. Extranet also improves the order processing and distribution of products. For instance, a retailer's point of sale could be linked with suppliers' delivery system to ensure that goods are replenished promptly. One major benefit of the extranet is the improvement of customer services (Spralls III et al., 2011). A company can use websites to post the prices of their products or hold customized information about the products they offer to customers, suppliers, and distributors (Chaffey, 2015). However, for extranet to achieve the benefits mentioned above, the services should be provided through a secure connection. Secure connections involve the use of control systems to ensure that businesses only divulge information necessary to others. Also, the company should monitor the return on investment realized from investing in extranet services to ensure business success.

2. Information and communication technology (ICT) has changed the way buyers and suppliers interact in supply chain management. Multiple companies need to cooperate to succeed in exchanging information in a supply chain. Use of Internet connection and responsive browsers to share information helps in achieving an effective network among suppliers and businesses. Companies can use the information they obtain from the supply chain to compute issues such as transportation, production, and procurement that would help in improving the distribution of products between purchaser and supplier (Milovanovi?, Milovanovi?, & Spasi?, 2016). Besides, ICT has helped in managing inventory, processing orders made by purchasers, integrating distribution channels, and outbound transportation (Milovanovi? et al., 2016). Use of the modern technology has enabled different suppliers and customers to combine their resources to create value by computing flexible routes for the distribution of products (Bethapudi, 2013). ICT infrastructure also allows integration of customer management relation systems and supply management systems. The integration of the two systems creates an easy to use system for selecting products, ordering, payment of ordered items, tracking supply, and reporting the status of ordered products (Bethapudi, 2013).  This process reduces the cost by eliminating the number of users involved in the purchaser and supplier chain. The communication is also direct, efficient, and real-time that helps in strengthening the relationship between the buyer and seller (Llach & Alonso?Almeida, 2015). Therefore, the use of ICT in business has significantly strengthened the relationship between purchaser and supplier, reduced cost of transactions, and improved delivery of services.

References

Barão, A., de Vasconcelos, J. B., Rocha, Á., & Pereira, R. (2017). A knowledge management approach to capture organizational learning networks. International Journal of Information Management, 37(6), 735-740. Doi: 10.1016/j.ijinfomgt.2017.07.013

Bethapudi, A. (2013). The role of ICT in tourism industry. Journal of Applied Economics and Business, 1(4), 67-79. Retrieved from: https://www.aebjournal.org/articles/0104/010406.pdf

Chaffey, D. (2015). Digital business and e-commerce management. Pearson Education Limited.

Llach, J., & Alonso?Almeida, M. D. M. (2015). Integrating ICTs and Supply Chain Management: The Case of Micro?Sized Firms. Human Factors and Ergonomics in Manufacturing & Service Industries, 25(4), 385-397. Doi: 10.1002/hfm.20559

Milovanovi?, G., Milovanovi?, S., & Spasi?, T. (2016). The role of contemporary web technologies in supply chain management. Ekonomika, 62(1), 43-58. doi:10.5937/ekonomika1601043M

Spralls III, S. A., Hunt, S. D., & Wilcox, J. B. (2011). Extranet use and building relationship capital in interfirm distribution networks: The role of extranet capability. Journal of Retailing, 87(1), 59-74. Doi: 10.1016/j.jretai.2010.09.001