The internet has played a huge part in transforming industry value systems through globalisation and supply chain integration. One of the biggest benefits of using the internet for these systems is the ability to communicate in real time between supplier, manufacturer, courier , distributer and ultimately, the customer. It also improves service levels between all parties and reduces logistics costs.
However the advent of global manufacturing companies has led to a number of new challenges. The major problem for large manufacturing companies is storage at their facilities of raw materials and finished products. Another thing global companies need to take into consideration is ...view middle of the document...
The internet has helped to improve all of these in ways we couldn’t predict 5-10 years ago.
Income & outgoing logistics: The internet has managed to simplify and automate many of the income on a global scale. Computer management programs have made it as easy as scanning a barcode or RFID tag to track, store and ship materials coming into the business and products leaving it. The entire process can be documented digitally and the information sent world-wide instantaneously to other people
Operations: Even within large companies who operate on a global scale, being able to communicate between different manufacturing plants is vital. For example, car maker BMW in Germany may need electronics from Korea before it can proceed with manufacturing in its Germany based plant. This is an example how operations on a local scale can have dependencies on other operations in different countries which requires precision communication and delivery times in order for manufacturing to continue unimpeded. This adds enormous value to companies by increasing turnover and better overall quality of the product, all with the help of the internet.
Sales and marketing: One of the biggest transformations the internet has provided in value systems through globalisation is the ability to market and sell your products. One of the big bonuses the internet has provided is the ability to market your product online. This has greatly transformed online value systems through globalisation by obviating the need to have a physical store front to sell your product or service. A good example of this is Google bring able to provide apps for sale over the internet and online storage, cutting out major costs such as property rent, physical storage and employees.
Another huge bonus the internet has introduced in globalising value systems is the introduction of marketplaces for a large number of vendors to sell their products in one place. This allows small time businesses and large multi-national companies to market their products in one central hub, accessible by everybody. An example of a centralised global trading site is Amazon who manages the sale and distribution of billions of products globally every year. With this, small time business owners are able to compete with the large marketing budgets of multi-billion dollar companies such as Nike or Adidas by offering their goods to a global audience easily.
One of the most well-known ways to sell and market goods online would not be possible if the internet had not transformed value systems globally the way it did. Online auction sites such as eBay has revolutionized the way we sell and market goods online. The internet allows everyday people with no business or sales background to sell their products online to a global market in a way that would never have been possible without the internet.
Customer Service: Companies are now able to provide valuable customer care and other related services online thanks to the internet’s roll...