Slide 10.1 Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2 nd edition, © Pearson Education Limited 2008 Chapter 10: Choosing the appropriate strategy for interaction with suppliers After this session you should be able to:  Understand the basic concepts and issues in business-to- business e-commerce  Assess the advantages and drawbacks of B2B electronic purchasing  Differentiate B2B e-marketplaces based on the ‘what’ and the ‘how’ of purchasing  Distinguish the different levels of openness in B2B e-marketplaces  Appreciate the functionalities offered by different e-procurement solutions and the trade-offs that companies need to make when choosing one of these solutions  Recognise the increasingly competitive dimension of e-supply chain management.

Slide 10.2 Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2 nd edition, © Pearson Education Limited 2008 Operating inputs Manufacturing inputs Spot sourcing Systematic sourcing Yield managers Horizontal markets that enable spot sourcing of operating inputs MRO hubs Horizontal markets that enable systematic sourcing of operating inputs Catalogue hubs Vertical markets that enable systematic sourcing for manufacturing inputs Exchanges Vertical markets that enable spot sourcing for manufacturing inputs How do firms buy? What do firms buy? Exhibit 10.1 The business-to-business (B2B) e-commerce matrix classifies different types of B2B e-marketplaces Source: Adapted from S. Kaplan and M. Sawhney (2000).

Slide 10.3 Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2 nd edition, © Pearson Education Limited 2008 Supplier Buyer E-market operator Consortia Degree of openness of e-marketplace high low Fastparts.com Medibuy mondus.com Examples Covisint Transora CitiusNet Dell Computer Wal-Mart 2 Supplier Buyer Public e-markets 1 Private Exchanges 3 Supplier Buyer Exchange owner Source: Adapted from W. Hoffman, J. Keedy and K. Roberts (2002), p. 99. Exhibit 10.2 Different B2B e-marketplaces display varying degrees of openness

Slide 10.4 Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2 nd edition, © Pearson Education Limited 2008 Originator selects, requests order Manager approves order Buyer, originator places order Goods received, and delivered Matching and payment CD/web catalogue Integrated e-procurement or ERP system Accounting system /workflow systems Stock control catalogue Order entry on website Source: D. Chaffey, (2006), pp Exhibit 10.3 E-procurement solutions cover different parts of the supply chain