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Establishing an extranet, or Business-to-Business Web, would have several benefits to BECO.   By opening up BECO's internal network to suppliers, the improved transparency can allow BECO to reduce the amount of parts and supplies kept in inventory, reducing our own company's overhead; and suppliers can optimize their delivery schedules to stay ahead of our own needs and deadlines.   This will also allow for quicker and more seamless responses to changes in the market, regardless of the suppliers' relative locations, reducing the risk in an ever-changing market.   An extranet will also allow our suppliers 24-hour access to vital information, allowing them to continue working for us even across different time zone and without the lag inherent to in-person or phone meetings.   Some of the more routine transactions may even be able to be entirely automated, reducing BECO's labor costs and reducing the risk of human error.   In addition, BECO may be able to entirely avoid having to go through middlemen or wholesalers for some materials, which could result in considerable costs savings.   The reduction of time and money spent between the initial order and final delivery will give us a competitive edge over any other machinery company not similarly linked in, allowing BECO to expand its market share.

However, there are some associated risks and costs to establishing an extranet with our suppliers.   In order to be useful to our suppliers, BECO's own data will need to be kept accurate and up to date at all times.   This may require the purchase of content management software to keep that data up to date, and the hiring or training of personnel to use it.   There are also matters of security to consider.   Our suppliers may be partners in many of our business dealings, but giving them access to our sensitive data might be risky if we are competing with them in the supplying of certain types of machinery or parts.   Consequently, we will need to add internal security measures, such...

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  • Submitted by: Chrismalamba1
  • on April 16, 2015
  • Category: Business and Economics
  • Length: 686 words
  • Views: 93
  • Popularity Rank: 31811
  • 1 rating(s)

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