The Advantages of an Extranet
An extranet is similar to an intranet insofar as it’s a secure, private virtual space that uses the Internet infrastructure -- it’s essentially a private website for a business -- but is accessible not only to employees, but also to business partners, suppliers and customers. As such, an extranet can offer a range of benefits to businesses.
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Improved Supply Chain
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An extranet allows elements of the supply chain -- the distribution channel from suppliers, through manufacturing processes, to distributors, retailers and consumers -- to be integrated. An inventory system, for example, can be linked directly to suppliers, so that it automatically places an order for raw materials or components when the stock on hand falls below a certain level. Online ordering, order tracking and inventory management not only makes the procurement process more efficient, but also reduces the amount of stock that a business needs to hold to a minimum, creating the basis of an electronic data exchange or just in time inventory system.
Improved Collaboration
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An extranet supports collaborative working. It improves efficiency by allowing business partners to work on common projects online. A business can share information on current projects, including designs, plans and specifications, quickly and exclusively with its business partners. These documents can be reviewed and commented upon by those partners online, speeding up the development and approval process. Provided it is properly maintained, the information on an extranet is always current and, unlike with traditional printed material, old and out-of-date information cannot be circulated.
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Flexibility
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An extranet allows business partners, suppliers and customers to access applications, information and services from a variety of hardware platforms, such as a desktop or laptop computer, or a cellular phone, at a time and place that is most convenient. An extranet may, for example, allow remote and mobile employees to access core business information at all times, regardless of their geographical locations. Similarly, an extranet may allow customers to access customer service information outside regular office hours.
Cost
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An extranet provides a single user interface between a business and its partners, suppliers and customers. It can make manuals and technical documentation available online to all of these parties, enabling them to resolve their own queries. An extranet eliminates the cost of producing multiple copies of printed documentation and the “self service” approach reduces the cost of telephone calls, travel, accommodation and other costs with person-to-person information exchanges.
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References
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