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ACCA Strategic Professional · Strategic Business Leader · E-business: value chain

Orchard Foods, a manufacturer, now uses an online portal through which its approved suppliers receive purchase orders, confirm delivery dates and submit invoices. No customer sales occur through the portal. How should this be classified?

This is e-business, specifically e-procurement, because internet technology is used to integrate suppliers into the firm's inbound value chain processes. It is not e-commerce selling to customers nor e-marketing, and e-business is not limited to customer-facing systems.

  1. AE-commerce, because money changes hands electronically
  2. BE-marketing, because suppliers are external parties
  3. CE-business, specifically electronic procurement integrating suppliers into the value chainCorrect
  4. DNeither, because only customer-facing systems count as e-business

Explanation

E-business includes using internet technology to manage inbound processes such as procurement and supplier collaboration. The portal does not sell to customers, so it is not a customer-facing e-commerce or marketing tool. Option excluding non-customer systems wrongly narrows the definition.

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