Four Sectors (Levels) of Industries

• Primary (Level I)

• Secondary (Level II)

• Tertiary (Service) (Level III)

• Quaternary (Level IV) • Quarter (1/4)

• US$: 25cents (1/4 dollar)

• Time:15minutes (1/4 hour)

Primary Industries (1)

• Include the changing process of natural resources into primary products.

Primary Industries (2)

• Agriculture - covers all activities required

to food production • Forestry - provide timber as raw material for wood products • Mining- Materials recovered by mining include

gold, diamonds,…and so on

•Most products from this sector Most products from this sector are considered are considered raw materialsraw materials for other industries.for other industries. •ExamplesExamples

Secondary Industries (1)• This sector is ofte

n divided into light

and heavy industry.

• Create a finished, usable product.

Secondary Industries (2) • Examples

– Manufacturing- the use of tools and labor to make things for use or sale.

– Chemical Industry-produce industrial chemicals, Polymers and plastics

– Steel Industry-steel is one of the most common materials in the world

Tertiary (Service) Industries (1)

• Include the provision of services, they are also called Service Industries

• Service: the non-material equality of a good in economics and marketing

• May include the transportation, distribution and sale of goods from producer to a consumer.

ProducerProducer ConsumerConsumer

A B

Tertiary (Service) Industries (2) • Examples

– Wholesaling – Retailing

– Restaurant

A restaurant in New York

ProducerProducer ConsumerConsumer WholesalingWholesaling RetailingRetailing

Quaternary Industries (1)

• Include the intellectual services

• An intellectual is one who tries to use his or her brain to work, study about different ideas

The University of Cambridge (Cambridge University)

Quaternary Industries (2)

• Examples – Health- Physical, mental – Culture -Patterns of

human activity

– Education -Teaching and learning specific skills or knowledge, from

Kindergarten University (Under) Graduate School

A kindergarten classroom

Cross Industry Exchange Portal

Commerce

• Includes

– Tertiary (Service) industries

• and

– Quaternary industries

• Examples:

– Wholesaling, Retailing, Restaurant…– Health, Culture, Education…

Commerce (2)• Commerce is a branch of production

which deals with the exchange of goods and services from producer to consumer.

• It comprises the trading of something of economic value such as goods, services, information or money between two or more entities.

Automation (1)

• The use of

control systems such

as computers to

control processes,

replacing human

operators.

RobotsRobots engaged in vehicle underbody assembly engaged in vehicle underbody assembly

Automation (2)

Light control computerized systemLight control computerized system

Automation (3)

The Purposes of Commerce Automation

Improve Quality

Improve Efficiency

Reduce Cost

ConsumerConsumerProducerProducer

Quality Efficiency Cost

Traditional Commercial Transaction Model

ConsumerConsumerProducerProducer WholesalingWholesaling RetailingRetailing

• Wholesaling sell the goods from sell the goods from producerproducer to retailers to retailers • Retailing sell the goods from sell the goods from wholesalerwholesaler to consumer to consumer

New Commercial Ttransaction Model

ConsumerConsumerProducerProducer Distribution Distribution Center (D.C)Center (D.C)

• A A distribution centerdistribution center for a set of for a set of products is a is a warehouse..

Scope of Commerce Automation

• Logistics Flow – Goods

• Information Flow – Data

• Business Flow – Owenship

• Finance (Cash) Flow – Money

Logistics

AAProducerProducer

BBDistribution Distribution Center (D.C)Center (D.C)

CCConsumerConsumer

• The flow of The flow of goods from the source of from the source of

production to the marketplace.production to the marketplace.

•Might include the Might include the transportation, inventory, , inventory,

warehousing, material handling, and warehousing, material handling, and packagingpackaging..

Information

ProducerProducer Distribution Distribution Center (D.C)Center (D.C) ConsumerConsumer

• Information is the result of processing data adds to the knowledge of the receiver

•The concept of information is closely related to notions of communication, data, and knowledge

Business

ProducerProducer Distribution Distribution Center (D.C)Center (D.C) ConsumerConsumerownership ownership

• Sell goods and/or services to consumers to Sell goods and/or services to consumers to generategenerate profit. profit.

• Businesses are formed to earn profit and Businesses are formed to earn profit and grow the personal grow the personal property

Finance

ProducerProducer

Distribution Distribution Center (D.C)Center (D.C)

ConsumerConsumer

•Manage moneyManage money, Particularly the differences between income and investments.

Planned achievement index• Ratio of Bar code popularity.

• Ratio of Bar code application.

• The number of POS user.

• The number of EOS user.

• The number of VAN user.

• The number of standard user of enterprise using EDI.

• The quantity and number of merchandise data bank • The number of automated freight loading and unloading

locations.

Planned achievement index (Cont’d)

• The number of automated• merchandise-sorting system.• The number of merchandise distribution

center.• The number of enterprise using standard

accounting.• The number of enterprise using automatic

accounting system.• The willingness of enterprise to accept

information standard.

The Economical Benefit of Commerce Automation

a. Expand marketing channel and promote sales of

products.

b. Tax can be more effectively collected .(Financial Charge)

c. Reduce the garbage handling volume.(Paperless)

d. Raise the trade speed and efficiency.

The Social Benefit of Commerce Automation

a. It can provide country fellow with safe and hygiene foods.

b. It can greatly reduce labors moving work.

c. It can raise the quality of life owing to automatic consumer behavior.

d. It can protect the interests of producers to downright distribution system.

The Environmental Benefit of

Commerce Automation

a. It can greatly reduce the metro and home garbage pollution.

b. It can minimize the vehicle trips thus improves transportation and reduce pollution owing to efficient wholesale distribution operation.