A third goal for many companies is doing business electronically,
especially with customers and suppliers. This new model is called e-commerce
(electronic commerce) and it has grown rapidly in recent years. Airlines,
bookstores,
and other retailers have discovered that many customers like the convenience of shopping from home.
Consequently, many companies provide catalogs of their goods and services online and take orders online.
Manufacturers of automobiles, aircraft, and computers, among others,
buy subsystems from a variety of suppliers and then assemble the parts.
Using computer networks, manufacturers can place orders electronically as needed.
This reduces the need for large inventories and enhances efficiency.