0. Chapter 4 Part 1
B2B E-Commerce

1. Learning Objectives Describe the major types of B2B models.
Discuss sell-side marketplace
Describe the characteristics e-procurement.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

2. Learning Objectives Describe other procurement methods.
Define exchanges and describe their major types.
Describe B2B portals.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

3. The Basic Types of B2B TRANSACTIONS AND ACTIVITIES Sell-side Buy-side
Exchanges
Supply chain improvements
Collaborative commerce
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

4. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

5. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

6. Types of B2B Transactions: How Do Firms Buy?
spot buying
The purchase of goods and services as they are needed, usually at prevailing market prices (commodity exchanges) transaction is usually done within 2 days.
strategic sourcing
Purchases involving long-term contracts based on private negotiations between sellers and buyers
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

7. Types of Materials Traded: What Do Firms Buy?
direct materials
Materials used in the production of a product (e.g., steel in a car or paper in a book)
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

8. Types of Materials Traded: What Do Firms Buy?
indirect materials
Materials used to support production (e.g., office supplies or light bulbs)
MRO (maintenance, repair, and operation)
Indirect materials used in activities that support production
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

9. The Direction of the Trades
vertical marketplaces
Markets that deal with one industry or industry segment (e.g., steel, chemicals)
horizontal marketplaces
Markets that concentrate on a service, material, or a product that is used in all types of industries (e.g., office supplies, PCs)

10. The Basic Types of B2B TRANSACTIONS AND ACTIVITIES Sell-side Buy-side
Exchanges
Supply chain improvements
Collaborative commerce
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

11. Types of B2B Supply chain improvements Collaborative commerce
Manufacturing
Procurement
Raw material shipment
Logistics
Collaborative commerce
Communication
Joint design
Planning
Information sharing
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

12. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

13. E-Procurement Purchasing
Reverse auctions
Negotiations – spot buying, future buying
Group purchasing
Maverick buying
Unplanned purchases of items needed quickly, often at non-prenegotiated higher prices
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

14. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

15. E-Procurement Types of E-Procurement
E-sourcing- Identifying new suppliers for a specific category of purchasing requirements.
E-tendering- Sending requests for information and prices to suppliers and receiving the responses of suppliers.
E-reverse auctioning
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

16. E-Procurement Types of E-Procurement
E-informing- Gathering and distributing purchasing information both from and to internal and external parties.
Web-based ERP -creating and approving purchasing requisitions, placing purchase orders and receiving goods and services
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

17. Other E-Procurement Methods
internal procurement marketplace
The aggregated catalogs of all approved suppliers combined into a single internal electronic catalog
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

18. Other E-Procurement Methods
group purchasing
The aggregation of orders from several buyers into volume purchases so that better prices can be negotiated
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

19. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

20. Next week…
Sell Side.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

21. Sell-Side E-Marketplaces
E-marketplace in which one company sells to many business buyers
E-catalogs
Auctions
Extranet

22. Forward E-Auctions Forward Auctions Using intermediaries in auctions
Revenue generation
Cost savings
Increased “stickiness”
Member acquisition and retention
Using intermediaries in auctions
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

23. B2B Exchanges: Functions of Exchanges Matching buyers and sellers
Facilitating transactions
Maintaining exchange policies and infrastructure

24. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

25. B2B Exchanges: OWNERSHIP OF B2B EXCHANGES
consortium trading exchange (CTE)
An exchange formed and operated by a group of major companies in an industry to provide industry-wide transaction services
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

26. CTE
Avendra - redefine supply chain management through strategic procurement processes
Hotel chains and lodging management companies
Independent hotels
Golf, health and business clubs

27. B2B Exchanges: DYNAMIC PRICING
A rapid movement of prices over time and possibly across customers, as a result of supply and demand matching
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

28. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

29. B2B Portals and Directories
corporate portal
A major gateway through which employees, business partners, and the public can enter a corporate website
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

30. Types of Corporate Portals
Portals for Suppliers and Other Partners
Suppliers can manage the inventories of the products that they sell to each specific customer online.
Customer Portals
The can view products and services and to place orders which they can later track

31. Types of Corporate Portals
Employee Portals
Training, dissemination for company news and information , discussion groups
Executive and Supervisor Portals
Single worldwide view of the company’s finances, and performance