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

Zenith Motors, a car manufacturer, uses an e-procurement system to buy components. Its suppliers are linked electronically to its production schedule so that parts arrive just in time, cutting stockholding and order-processing costs. Which aspect of the e-business value chain does this mainly improve?

The system mainly improves inbound logistics and supply-chain integration. Electronic links between Zenith and its suppliers match parts deliveries to the production schedule, reducing stock and processing costs. It does not primarily concern outbound delivery, after-sales service or marketing.

  1. AOutbound logistics to end customers
  2. BInbound logistics and supply chain integrationCorrect
  3. CPost-sale customer service
  4. DBrand marketing and promotion

Explanation

Linking suppliers to the production schedule affects the flow of components into the firm, which is inbound logistics and supply-chain integration (e-procurement). Outbound logistics concern delivery to customers, and service and marketing are not the focus of the described change.

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