Chapter 5 B2B E-Commerce

CONCEPTS, CHARACTERISTICS, AND MODELS OF B2B E-COMMERCE business-to-business e-commerce (B2B EC) Transactions between businesses conducted electronically over the Internet, extranets, intranets, or private networks; also known as eB2B (electronic B2B) or just B2B. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1 private consortia 2 public e-marketplaces Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall B2B CHARACTERISTICS Parties to the Transaction Sellers, Buyers, and Intermediaries Types of Transactions Spot Buying, Strategic Sourcing Types of Materials Direct, indirect, MRO Direction of Trades Vertical, Horizontal Co-ordination over entire supply chain Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

ONE-TO-MANY: SELL-SIDE E-MARKETPLACES one company sells to many business Selling from Catalogs May be customized (prices, products, location, etc) How to find buyers? What about offline? Selling Via Forward Auctions Quick sales, save costs, own site or intermediary One to one, negotiated long term contract Through e-marketplace, etc Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

ONE-FROM-MANY: BUY-SIDE E-MARKETPLACES AND E-PROCUREMENT Many companies sell to one business Two problems with traditional procurement procurement management is costly, pricey maverick buying E-procurement E-Sourcing – look for new suppliers E-Tendering – send requests for supplies/services E-Reverse auctioning – sellers drive for lower price E-Informing – exchanging purchasing information Web-based ERP (electronic resource planning) E-Marketsites – buying communities E-MRO (maintenance, repair, and operating) Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

OTHER E-PROCUREMENT METHODS INTERNAL MARKETPLACE All approved suppliers in one catalog Purchases can be made without approval BUYING AT SELLERS E-AUCTION GROUP PURCHASING Internal or external (other companies) aggregation BUYING AT SELLERS SITES COLLABORATIVE COMMERCE E-BARTERING Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

B2B ELECTRONIC EXCHANGES: DEFINITIONS AND CONCEPTS FUNCTIONS OF EXCHANGES Matching buyers and sellers Post offerings and associated information Match suppliers with buyer preferences Facilitating transactions Providing platform arrange transaction/logistics Maintaining exchange policies and infrastructure Ascertaining compliance with law Providing ED interfaces Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

B2B PORTALS, DIRECTORIES, AND OWNERSHIP OF B2B MARKETPLACES Information portals for businesses. Vortals Focuses on vertical industry B2B Marketplaces Third Party Consortium Trading Exchange (CTE) Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Activities Case 5.1 Case 5.2 Case 5.3 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall