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CHAPTER5
BUSINESS-TO-BUSINESS
ACTIVITIES: IMPROVING
EFFICIENCY AND REDUCING
COSTS
LE AR N I NG OB JE CT IV ES
In this chapter, you will learn:
• How businesses use the Internet to improve purchasing, logistics, and
other business process activities
• About electronic data interchange and how it works
• How businesses have moved some of their electronic data interchange
operations to the Internet
• What supply chain management is and how businesses are using Inter-
net technologies to improve it
• About electronic marketplaces and portals that make purchase–sale
negotiations easier and more efficient
INTRODUCTION
Since the first large companies evolved during the Industrial Revolution, they have tried to find
ways to cut costs and operate more efficiently. Their first major efforts were directed at finding
ways to manufacture products faster and cheaper. Later, purchasing, logistics, and management
operations.
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