Apart from business-to-consumer highly popular model of conducting business there is another form of commerce unit known as business-to-business. It is considered a different type of trade, as different participants are involved.
One of the most significant benefits of extranet installment rests in the reduction of workload in the company. There is no need to specially place orders to have the inventory restocked vendors only have to access common extranets that they share with their customers. They can also check supply and order delivery automatically in real time and make sure that it was delivered. Having instant access to corporate data that shows ordering history and buying patterns is another great value that extranets create for the partners. They allow making forecasts about future deals on the basis of ordering patters that are reflected and can be easily found on the extranet. Clearly if the company works with many vendors and buyers, it is important to ensure that all of them have access to their own information and extranets can do it. By providing all business partners with right of entry into inner data warehouse, customer and supplier relationship improves but most importantly it reduces costs related with employing people for call centers that have to respond to inquiries. In such a way companies are cutting down costs and reducing number of steps in supply chain resulting in faster accomplishment of company's objectives. According to extranet service providers, extranets are able to get suppliers to deliver needed components just in time, as they can check the availability instantly and make a delivery. This practice will keep companies from storing inventories for long periods of time and paying extra for warehousing. It will not only simplify the procedure but make it more transparent for all parties. If the businesses are partners in manufacturing certain products, extranet will be necessary for speeding up and product development. In this stage fast communication and clarity is essential for instance for such companies as aircraft manufacturers, who are frequently working together on the projects. Delivery times will be reduced if partners are aware of what and when components need to be completed, thus facilitating physical and operational efficiency of the project, which are parts of the supply chain. Cycle times and their costs can also be reduced with implementation of extranets. When performances are controlled by direct customers in real time it serves as a perfect encouragement for the completion of a job in timely manner regarding quality standards. This does not imply pressure over workers but rather a controllable process through which everyone receives satisfaction. Extranets for the most part are used to provide a better customer service and coordination of the business procedures in order to stay informed about current industry tendencies. In order to receive more business proposals and loyal customers, companies also decide to install extranets. As was already mentioned clients with regular access to their own information trust partners more and choose to do business with them over those who have work under old systems. Overall responsibility of extranets is to show business partners such as vendors, suppliers and buyers their mutual work, if it's effective or not and to make the right decision about future projects. Measuring performance in real time is easier and faster than having to deal with heaps paperwork that takes up loads of time. Thus extranets are efficient as tools for managing supply chain in general and in minimizing its specific steps throughout production and distribution process.
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