Wednesday, January 21, 2009

Discuss how E-commerce can reduce cycle time, improve employees' empowerment and facilitate customer support

Reduce cycle time
Cycle time is a period of time between a customer placing an order and receiving the goods. It can help the company to reduce the cycle time by creating an effective and direct system without wasting any available time. Through e-commerce, the cycle time can be reduced by eliminating the time taken to process in between supplier, intermediaries and customer. The customer can immediately make an order of the material needed no matter in what time zone to access to the internet. For example, Dell and FedEx allow people carry out the businesses without the barriers of time or distance. People can make the transaction within day or night, 24-hours a day or purchase or sell anything one desire at a single click of the mouse. Beside that, cycle time also can be reduced through improvement along the supply chain such as by using Radio Frequency identification (RFID).




Empowerment
E-commerce can improve the employees’ empowerment by grants power to employees in dealing with process of capturing, searching and leveraging business information and also improves employees’ empowerment where provides enabling technologies for the company’s employees. This can help in more flexibility for the employees in conducting their works and improve employee knowledge and effectiveness which can help to reduces contact handle times. This is providing a quick response or feedback to the customers through the internet without any process that need take a long time to be proved. Beside that, the productivity will be improved if the employees are empowered. Nowadays, employees are not strictly under supervision and the workload of manager could be reduced because they do not need to approve all the small decision unless it was important.



Facilitate customer support
Building and maintaining customer relationships is the key to success in e-commerce and, unless service is maintained, customer loss may result, more than offsetting any cost efficiencies due to introducing e-commerce technology. Since the core of e-commerce is information and communications, support for managing customer relationships is available to those who know how to use it.


By allowing customers to track delivery of parcels in real time, the Federal Express website keeps customers in touch with the location of their goods and when they will arrive. Provision of this sort of information creates greater customer satisfaction and sense of control.




Automatic Teller Machines (ATM’s) are now well used by most bank customers, who, although some still express feelings about the lack of personal interaction with bank staff, generally would not want to return to the old system of standing in a queue for personal service. They feel more in control of the transaction process and can access their information any time.


Publishing Frequently Asked Questions (FAQ’s) on a website saves customers time and money waiting on the phone for responses. They also allow the business to concentrate on generating more business rather than dealing with often simple issues.

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