Mercantile models from the Merchant’s Perspective | Fundamentals of E-Commerce

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mercantile models from merchant's perspectiveMercantile models from the Merchant’s Perspective,
Fundamentals of E-commerce Notes | Sixth Semester,
BSc.CSIT | Tribhuvan University (TU)

Mercantile process model from merchant’s perspective:
E-commerce order management cycle:
To order to deliver cycle from the merchant perspective has been managed with an eye towards standardization and cost. This is based on assumption that an organization must create a set of operating standard for service and production. They perform to those standards while minimizing the cost. To fully realize and maintain a competitive advantage in the online environment it is necessary to examine the order management cycle (OMC) that also includes the traditional order to delivery cycle. However the OMC has the following generic steps.

1. Pre-Sale Interaction

  1. Order planning and order generation:
    The business process begins long before an actual order placed by the customer. The production planners develop the final forecast used to high workers and built inventory. Order planning leads into order generation. Orders are generated into number of wages into e-commerce environment such as sales force broadcast. Since personalized e-mail to customer or creates WWW web page.
  2. Cost Estimation and Pricing:
    Pricing is the bridge between the customer needs and company capabilities pricing at the individual order level depends on understanding value to the customer i.e, generated by each order etc. through order based pricing it is difficult to generate greater profits that are indicated by pricing.

2. Product service purchase and delivery

  1. Order Receipt and entry: After the acceptable price code, the customer enters the order receipts and entries paid in OMC.
  2. Order selection and prioritization: customer service representatives are responsible for choosing which to accept and order to decline. Not all customer order created equal, some or better business and some are fit into the companies’ capabilities and offers healthy profits. Companies also make gains by the way they handle over priority i.e, to check which orders to execute faster.
  3. Order Scheduling: during this phase prioritized orders get slotted into an actual production or operational sequence. Production people seek to minimize equipment change over communication between various function units is most essential in this phase of OMC.
  4. Order fulfillment and delivery: during order fulfillment and delivery the actual provision of product or service is made. While the details vary from industry to industry in almost in every company this step has become increasingly complex.
    Often order fulfillment involves multiple functions and location. Different parts of any order may be created in different manufacturing facilities and merged yet another site or order may be manufactured in one location warehoused in a second and installed in the third. In some businesses fulfillment includes third party vendor. In service operations it can mean sending
    individuals with different talent to the customer’s site. The more complicated task the more coordination required across the organization.
  5. Order billing and payment: after the order has been fulfilled and delivered billing is typically handled by the finance staff who view their job as getting the bill out effectively and collecting quickly i.e, the billing function is designed to serve the needs of the company not the customer service.

3. Post Sale Interaction

  1. Customer service and support: this phase plays an interestingly important role in all Elements of a company’s profit equation, customer value, price and cost. Depending on the specifications of business it can include elements such as physical installation of a product, repair and maintenance, customer training, equipment upgrading and disposal. Thus post sale service can affect customer satisfaction and company profitability of the year. But in most companies the post-sale service people are not linked to any marketing operation, internal product development effort or quality assurance team.
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