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Order processing and distribution. The authors refer to an ‘electronic integration 

effect’. For example, an extranet can connect a retailer’s point of sales terminals to a sup-

plier’s delivery system, ensuring prompt replenishment of goods sold. This potentially 

means fewer lost sales because of out-of-stock items and a lower inventory holding is 

needed.

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Customer service. Improving levels of service is one of the main benefits of the Premier.

Dell.com extranet described above, although it also has the other benefits listed above. 

Distributors or agents of companies can also find information such as customised pric-

ing or advertising materials. For example, 3M provides open web access to individual 

customers to find information about its office products such as Post-it notes and trans-

parent films (www.3m.com/uk/office), but it also offers an extranet for distributors such 

as Spicers (www.spicers.net) and Euroffice (www.euroffice.co.uk).

Many of the management issues involved with managing extranets are similar to those 

for intranets. These are five key questions that need to be asked when reviewing an existing 

extranet or when creating a new extranet: