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Effectives of Inventory Management on Provitability of the Firm

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Submitted By wallz
Words 1030
Pages 5
CHAPTER TWO
LITERATURE REVIEW
2.1 INTRODUCTION
This chapter comprises review of previous studies done on the area of the effect of e-purchasing on quality products. The researcher will source the information from articles and extracts appearing on the business journals, textbooks, newspapers, magazines and projects from the library.
2.2. Review of theoretical literature
According to chartered institute of purchasing and supplies (CIPS) the combined use of information and communication Technology helps acquire inputs of goods and services from external suppliers or providers. Many organizations accept credit card payment for their goods and services. (William cats-Baril and Ronald Thompson, 2005). They continue to say that many decisions are highly structured and can be automated. Automating decisions through the use of information technology can help streamline the internal operations of organizations among them, online purchasing. This can in turn improve the quality of services and products required and those offered to the market.
Quality products and services tie up internal customers and attract new ones. Cats-Baril and Thompson (2005) factored out that management should be encouraged to think of ways to link customer into the firms operations so that the customer will find switching to another supplier difficult. The type of services provided to customers using internet technologies generates customer loyalty.
James A. O’Brien,(2003) cited that the information systems must be designed to produce a variety of information and product quality to meet the changing needs of decision makers which among them are the customers or suppliers online. The business function of marketing and purchasing is concerned with the planning, promotion, sales, benchmarking on quality and price and final decision to buy or sell through internet technologies. The use of

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