E-commerce re-engineering traditional business enterprise business process

Reengineering the business processes of traditional commercial enterprises is simply to carry out electronic and informational transformation, that is, to some extent, using network and electronic means, replacing traditional business models and bureaucratic management with information and information management. The network transcends the characteristics of time and space, strengthens the direct relationship between procurement, inventory, sales and consumers, making sales closer to the market. Combined with e-commerce, this technology is actually used to promote the structural adjustment of commercial enterprises and the reform of marketing systems, financial management and operational mechanisms. The core of business process reengineering is the level and extent of internal application of information technology. The business of traditional commercial enterprises is mainly divided into four major processes: procurement process, store sales process, warehouse storage process and enterprise management process. How to recreate it, we will discuss separately below.

I. Reengineering the procurement process

1. Re-engineering the product selection and ordering process. In the traditional procurement business, the choice of goods is time-consuming and labor-intensive: procurement personnel often need to query the product and its pricing information in the catalogues of many suppliers, due to the diversity of information sources - in addition to the supplier's promotional materials, including newspapers , TV, magazines, etc., so the query and selection is very time consuming. The greater feature of e-commerce is price transparency. Customers can travel freely, compare and choose in the global market beyond the limits of time and space and national boundaries. Moreover, because “there is no loyal customer on the Internet”, suppliers compete for online market competition through e-commerce more intensely than traditional competition, which promotes efficient and convenient service, rich and high-quality goods, and competitive prices, which makes buyers and companies compare and choose. Can save a lot of time. Enterprises use a suitable e-commerce platform to query and select commodities, so that the nature of the work of traditional commercial enterprise procurement personnel will undergo qualitative changes: they do not have to travel around, but learn to sit in front of the computer and carry out information. Collect and analyze. In the traditional procurement business, when the goods and suppliers are determined, the company must arrange the order. The paper will be based on the paper media file, and the order will be closed until the end of the order process. This requires multiple contact or meeting with the supplier via fax or telephone. If the two parties conduct transactions in e-commerce, all contacts can be completed online and orders can be placed online. Therefore, the above-mentioned paper media activities of relevant operators should be transformed into computer work.

The concepts in the entire procurement process have to change. In the e-commerce transaction mode, because the goods cannot be seen, the goods, specifications, quotations, and demand quantities of the goods are reported on the Internet. Thus, for the enterprises themselves, in the process of buying and selling goods, the standard contract method is represented. Many new standards must be established, so new standards for e-commerce business operations are needed, and there is a need for dedicated personnel to work according to these standards.

2. Eliminate black holes formed by irregular purchases. There are many irregular behaviors in traditional procurement. For example, procurement personnel take kickbacks and do not purchase according to normal procurement procedures. Many purchases are unauthorized purchases without a power of attorney. The reason for this phenomenon is the information asymmetry between the procurement personnel and the managers of the enterprises. Because managers have to be fully responsible, it is impossible to go out and purchase from time to time, which makes the procurement personnel face a great moral hazard and eventually generate black holes for procurement. However, e-commerce can greatly narrow the information asymmetry between managers and procurement personnel, and basically eliminate the moral hazard that procurement personnel may face, thus eliminating the emergence of procurement black holes. This is because e-commerce is a business activity conducted by means of information networks in the form of electronic data information circulation. This brings two benefits to the manager: First, the manager can obtain the same information as the purchaser in a short period of time, so that the purchaser will not be deliberately or unintentionally deceived. Second, the buyer and the seller are related to the transaction. The information is recorded on the Internet and is open to both parties. The transaction is transparent, and any false information cannot be traded.

Second, the re-engineering of the inventory and material distribution process

1. Avoid large deposits due to multi-site and multi-warehouse inventory. In the traditional procurement model, because it is difficult to grasp the future changes of the market, in order to ensure that the supply to the market will not be broken, the average company would rather increase the inventory. Especially for large department stores, it is even possible to set up multiple warehouses in different geographical locations. Under this management mode, different warehouses need a certain amount of safety reserves. For the whole enterprise, a huge amount of unnecessary safety reserves will be formed. If the transportation lead time and sales lead time are considered, the excess reserves will be formed. In addition, the maintenance management of excess inventory, additional warehouse investment and transportation expenses will result in huge deposits of inventory funds. E-commerce can basically eliminate the above drawbacks. This is because e-commerce uses network and supply chain technologies to integrate upstream suppliers, logistics carriers, product service providers and correspondents to form a complete e-commerce supply chain for end-customers. This supply chain has changed the cost structure of commercial enterprises and other upstream enterprises, further strengthened the strategic alliance between commercial enterprises and other upstream enterprises, and enhanced the ability of enterprises to grasp the market, thus making it unnecessary for enterprises to blindly increase inventory. Of course, to achieve this, enterprises need to establish their own developed management information system and form a strong external coordination capability. With the continuous improvement and perfection of the distribution system that meets the needs of e-commerce, the application of a series of mechanized and automated tools, accurate and timely monitoring of the logistics process by logistics information will speed up the flow of logistics and improve the accuracy, thus effectively Shorten the sales cycle and reduce inventory.

2. Make inventory management actively adapt to demand and avoid the occurrence of backlogs and shortages. In the traditional way, the investment in storage facilities, the planning of transportation capacity, and the budget for inventory funds are mostly based on the decomposition of sales plans. However, the market is changing day and night. Considering the structure of the commodity, the changes are endless. This makes the inventory arrangement under the original plan too poor, or the inventory is overstocked or out of stock. Enterprises continue to experience discounted shipments or expedited transportation under emergency conditions, resulting in rising costs. After the enterprise informationization, the use of computers can manage all materials application, procurement, transportation, storage, inventory, delivery and other aspects through different management modules. Specifically, the computer program module for inventory management is: (1) through the commodity demand plan proposed by the sales department, combined with the material warehousing and in-transit situation, generating a commodity procurement plan; (2) establishing a commodity transportation slip, recording and predicting the delivery , transportation, arrival time, and compared with the demand time of the sales department, take the corresponding reminder action and emergency transfer measures; (3) provide goods arrival information, check the goods according to the contract, if necessary, generate goods An exception report indicating how many, when, and how it was received, and the report also provides a description of the breach of contract terms, lack of documentation, and impact on other business or schedules at the time of delivery, which provides for the payment of the accounting department. The basis for the adjustment; (4) Next is the warehouse to transfer the goods to the department that needs such goods, generate an allocation report to provide an official document of the entry and exit of the warehouse goods, and track the whereabouts of the goods. The total amount of goods can be counted at any time according to the order contract, the current location (warehouse, store, in transit). In this way, complex inventory management, after the internal information system of the enterprise is established and connected with the supply chain outside the enterprise, that is, after establishing on the e-commerce platform, the goods in the warehouse, inventory, and outbound goods are coordinated and optimized through the above process. Management scheduling can achieve better results in a shorter period of time with less manpower.

Third, the reengineering of the sales process

In the era of networking and digitalization, consumer behavior has changed. Enterprises must provide personalized services, and the sales methods of large-volume and small-variety are small-volume and multi-variety sales methods, forming a flexible sales system for internal and external environments. To do this, the company's sales process must be reengineered on the company's e-commerce platform. Specifically: the front, the sales means to achieve automation, electronic, so that marketers (including sales staff) can quickly, accurately and completely convey information about the quality, price, features, after-sales service of the consumer. Second, in the process of the entire enterprise, the former information occurs, and the source of the information is the information of the consumer demand. Because the marketers are closer to the customer and better understand the customer's needs, they should quickly collect feedback from all the information displayed by the customers. This can remind the decision-making layer: how the original sales strategy is implemented, whether there is a need for correction; it can also enable the decision-making layer to propose new requirements to the producer, such as whether a product can be specially designed according to user needs. So that the personalized product can be handled well on the assembly line. Third, the re-engineering of the company's sales process is also reflected in the electronic after-sales service. When a consumer purchases a product in a certain mall, the mall assumes the responsibility of the after-sales service. On the one hand, the mall must keep sales information and customer information of all important commodities; on the other hand, more importantly, the mall should establish contact with consumers through the network and link this connection with the producer's service network. Provide consumers with real-time, comprehensive services.

Fourth, reengineer the management process

As a new technology platform, e-commerce requires the establishment of new business concepts, new talent structure, new operating methods and new management systems. The traditional enterprise management system is hierarchical and hierarchical management, and the organizational structure of the enterprise is pyramid-shaped. The business model established by this management system is generally expressed as a set of grading approval procedures. However, such approval procedures can cause serious inefficiencies, time-consuming and laborious efforts.

E-commerce has revolutionized Weber's theory. Because of the internal informationization required by e-commerce, the internal business processes of the enterprise are also concentrated on the Internet. The informationization is set on the entire management post and management personnel. The equipment and the internal management process of the enterprise put forward new requirements: the organizational structure of the enterprise should be developed in a flat direction, the department boundaries are no longer strictly divided according to the original department, region and level, and the manager can manage more subordinates. . By supervising people by computer, the scope of control can be expanded, the level of organization can be reduced, and the demand for support personnel can be reduced. In this way, the higher leaders of the enterprise can have a comprehensive and accurate grasp of the entire business development process of the enterprise without a lot of time, energy and physical strength, which will make the business decision quickly. On the basis of enterprise electronicization and informationization, the relationship between internal management and external management of enterprises is adjusted: on the e-commerce platform, enterprises are required to maintain good internal and external interaction capabilities, that is, internal management and internal processes are adopted. An ability to maintain an interaction between the network and the external environment. In this way, enterprises must carry out corresponding institutional reforms, adjust the personnel structure, and establish an internal management network to form corresponding management procedures and modules, which will eventually form management automation and electronic.

In short, the reengineering of business processes in China's commercial enterprises faces the requirements of marketization and electronic interweaving. In principle, it is required that the company's own operating mechanism and management system must be recreated according to market requirements. In operational practice, it is required to recreate according to the e-commerce model. Through reengineering, the innovation of the enterprise system will be realized in the end. Process reengineering needs to be consolidated by institutional innovation. Without institutional innovation, it is purely a reengineering of the general process. It is just fashionable and has no practical significance.

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