Using the Web as a Business Tool in the Fruit and Vegetable Industries

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Using the Web as a Business Tool in the Fruit and
Vegetable Industries R. Daniel
Lineberger Professor of Horticulture Webmaster of
Aggie Horticulture Texas AM University
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The genie is OUT of the bottle!
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US Census Bureau, August 2000

• 51 of US households have at least 1 computer.
• 88 of households with income gt 75K.
• 42 have Internet access (44 million households).
• 79 of households with income gt 75K.
• 39 use Internet to shop or pay bills.

About 94 million people use the Internet at home.
http//www.census.gov/population/www/socdemo/compu
ter.html
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E commerce the electronic exchange of
information, goods, services and payments. the
creation and maintenance of Web-based
relationships, including the building of an
engaging Web site, the maintenance of one-to-one
customer preference information, and the creation
of online communities. Malcolm
Frank as cited by Wallys Conhaim http//www3.exten
sion.umn.edu/mainstreet/curriculum/ecomm/conhaim1.
html
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disintermediation The process of removing the
middleman. Newly coined term that describes the
fact that large firms are able to sell directly
to smaller firms or individuals using Web
technology, eliminating profit-taking by
intermediaries, resulting in least-cost
purchasing strategies.
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Using the Web to Support Management

• Obtaining archival information.
• Using decision support tools.
• The Web as a source of real time information.

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Online order processing
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Tracking Shipments
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Applications

• Direct marketing to consumers.
• Online order processing and delivery tracking.
• Decrease in order to delivery time.
• Real-time coordination of inventory availability
  data.
• Enhanced information/service providing.

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http//maplespringsfarm.home.mindspring.com/
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Managing the System

• Independent Web site, internal management
• Independent Web site, managed by contractor
• Storefront in an emall consortium
• Real-time coordination of inventory availability
  data.

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Online Storefront Dynamic Inventory Information
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Range of Capabilities

• Web-based advertising brochure
• Order online by fax or email
• Online ordering, billing by invoice
• Online ordering, payment by credit card or
  virtual cash

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B2B business to business

• Order direct from manufacturer
• Changing nature of selling
• online auctions
• virtual inspection of product
• growth of EDI inventory management systems
• Creation of new types of businesses

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The virtual auction
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Obstacles

• Customers still skeptical about Web-based
  spending
• Rapid change in technology - hardware and
  software
• Small firms have little experience with
  technology
• Competition for skilled personnel is intense