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Chapter 5 Company-Centric B2B and Collaborative Commerce


Chapter 5 Company-Centric B2B and Collaborative Commerce Learning Objectives Describe the B2B field Describe the major types of B2B models Describe the ... – PowerPoint PPT presentation

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Title: Chapter 5 Company-Centric B2B and Collaborative Commerce

Chapter 5Company-Centric B2B and Collaborative
Learning Objectives
  • Describe the B2B field
  • Describe the major types of B2B models
  • Describe the characteristics of the sell-side
  • Describe the sell-side intermediary models
  • Describe the characteristics of the buy-side
    marketplace and e-procurement

Learning Objectives (cont.)
  • Explain how forward and backward auctions work in
  • Describe B2B aggregation and group purchasing
  • Describe collaborative e-commerce and
    interorganizational systems
  • Describe infrastructure and standards
    requirements for B2B

General Motors B2B Initiatives
  • The Problem
  • EC initiativesbuild-to-order project to be in
    place by 2005 reducing inventory of finished cars
  • What to do with manufacturing machines that are
    no longer sufficiently productive (assets
  • Resource problem relating to procurement of
    commodity products

General Motors (cont.)
  • The Solution
  • TradeXchange (now part of Covisint) online
    auctions of items like used machines for
  • Significantly decreases time for sales
  • Increases dollar amount of the sales
  • EC initiatives at TradeXchange
  • Capital assets problemimplemented its own
    electronic market to conduct forward auctions
  • Procurement problemautomated the bidding,
    creating online reverse auctions on its
    e-procurement site

General Motors (cont.)
  • The Results
  • Within just 89 minutes after the first forward
    auction opened, eight presses were sold for 1.8
  • In the first online reverse auction, GM purchased
    a large volume of rubber sealing packages for
    vehicle production at a significantly lower than
    the price GM had been paying through negotiated
    by manual tendering

Concepts, Characteristics, and Models of B2 EC
  • Basic B2B Concepts
  • 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
  • Market Size and Content
  • Expected to grow from 1.1 trillion in 2003 to
    10 trillion by 2005, the percentage of
    Internet-based B2B from 2.1 in 2000 to 10 in

Concepts, Characteristics, and Models of B2 EC
  • B2B EC Characteristics
  • Parties to the transaction
  • Online intermediaryan online third-party that
    brokers a transaction between a buyer and a
    seller can be virtual or click-and-mortar
    buyers sellers
  • Types of transactions
  • Spot buyingthe purchase of goods and services as
    they are needed, usually at prevailing market
  • Strategic sourcingpurchases involving long-term
    contracts that are usually based on private
    negotiations between sellers and buyers

Concepts, Characteristics, and Models of B2 EC
  • Types of materials
  • Direct materialsmaterials used in the production
    of a product (e.g., steel in a car or paper in a
  • Indirect materialsmaterials used to support
    production (e.g., office supplies or light bulbs)
  • MROs (maintenance, repairs, and
    operations)indirect materials used in activities
    that support production

Concepts, Characteristics, and Models of B2 EC
  • Direction of trade
  • Vertical marketplacesmarkets that deal with one
    industry or industry segment (e.g., steel,
  • Horizontal marketplacesmarkets that concentrate
    on a service or a product that is used in all
    types of industries (e.g., office supplies, PCs)

Concepts, Characteristics, and Models of B2 EC
  • The Basic B2B Transaction Types
  • Sell sideone seller to many buyers
  • Buy sideone buyer from many sellers
  • Exchangesmany sellers to many buyers
  • Collaborative commercecommunication and sharing
    of information, design, and planning among
    business partners

Exhibit 5.1Types of B2B E-Commerce
One-to-Many and Many-to-One Company-Centric
  • Company-centric ECe-commerce that focuses on a
    single companys buying needs (many-to-one, or
    buy-side) or selling needs (one-to-many, or
  • Private e-marketplacesmarkets in which the
    individual sell-side or buy-side company has
    complete control over participation in the
    selling or buying transaction

Many-to-Many Exchanges
  • Exchangesmany-to-many e-marketplaces, usually
    owned and run by a third party or a consortium,
    in which many buyers and many sellers meet
    electronically to trade with each other also
    called trading communities, or trading exchanges
  • Public e-marketplacesthird-party markets that
    are open to all interested parties (sellers and

Concepts, Characteristics, and Models of B2 EC
  • Supply chain relationships in B2B
  • Interrelated subprocesses and roles
  • B2B applications offer competitive advantages for
    supply chain management (SCM)
  • Virtual service industries in B2B
  • Travel and tourism services
  • Real estate Online stock trading
  • Electronic payments Online financing

Concepts, Characteristics, and Models of B2 EC
  • Benefits of B2B
  • Eliminates paper and reduces administrative costs
  • Expedites cycle time
  • Lowers search costs and time for buyers
  • Increases productivity of employees dealing with
    buying and/or selling
  • Reduces errors and/or improves quality of
  • Reduces inventory levels and costs
  • Increases production flexibility, permitting
    just-in-time delivery
  • Facilitates mass customization
  • Increases opportunities for collaboration

Sell-Side MarketplacesOne-to-Many
  • Sell-side e-marketplacea Web-based marketplace
    in which one company sells to many business
    buyers, frequently over an extranet
  • 3 major methods for direct sale in the
    one-to-many model
  • Selling from electronic catalogs
  • Selling via forward auctions
  • One-to-one selling under a negotiated, long-term

Sell-Side Marketplaces (cont.)
  • Virtual sellerssellers in the sell-side
    marketplace can be click-and-mortar manufacturers
    or intermediaries, usually distributors or
  • Customer service
  • Milacron, Inc.
  • Site contains 55,000 products, easy to use,
    securely handles selection, purchase, application
  • Technical serviceexpanded to provide a higher
    level of service

Buying from Virtual Seller
  • of Hong Kong
  • B2B office supply retailer services
  • Goalsell products in various SE Asian countries
  • Offers more than 10,000 items
  • Uses more than 300 suppliers
  • Company portal attractive, easy to use
  • Browse online catalogs
  • Use search engines
  • Paymentscash or check upon delivery, automatic
    payments, credit card, purchasing card

20 (cont.)
  • Delivery
  • Owns trucks and warehouses
  • Delivery scheduled online
  • Ordering system integrated with SAP-based
    back-office system
  • Value-added services
  • Track status of order
  • Check stock availability
  • Promotions
  • Customized prices
  • Group accounts and central approval
  • Standing orders automatically activated
  • Large number of reports and data available

Exhibit 5.2Sell-Side B2B Marketplace Architecture
Direct Sales from Catalogs
  • Companies may
  • Offer one catalog for all customers
  • Customized catalog for each customer
  • Facilitate the B2B direct sale by providing the
    buyer with a buyer customized shopping cart
  • Configuration and customization
  • Efficient customization for direct sales
  • Business customers customize products, receive
    price quote, submit order

Direct Sales from Catalogs (cont.)
  • Benefits
  • Lower order-processing costs
  • Faster ordering cycle
  • Fewer errors in ordering and product
  • Lower search costs for buyers
  • Lower search costs for sellers
  • Lower logistics costs

Direct Sales from Catalogs (cont.)
  • Benefits (cont.)
  • Ability to offer different catalogs and prices to
    different customers and to customize products and
    services efficiently
  • Limitations
  • Channel conflicts with distribution systems
  • High cost when traditional EDI used
  • Large number of business partners is needed to
    justify system

Selling Via Auctions
  • Using auctions on the sell-side
  • Revenue generation
  • Increased page views
  • Stickinesscharacteristic of customer loyalty to
    a Web site, demonstrated by the number and length
    of visits to a site
  • Member acquisition and retentionbidding
    transactions result in additional registered

Selling Via Auctions (cont.)
  • Selling from own site when
  • Large companies that conduct auctions frequently
    dont benefit from using intermediaries
  • E-marketplace already in use, cost of adding
    auction not too high
  • Intermediary-oriented e-marketplacean
    e-marketplace in which intermediaries operate

Selling Via Auctions (cont.)
  • Using intermediaries when
  • No resources required
  • Own and control auction information
  • Fast time to market
  • Searching and reporting
  • Search and report all auction activities
  • Standard reports available
  • Additional analysis of complex information

Selling Via Auctions (cont.)
  • Billing and collection
  • Automatic calculation of shipping weights and
  • Paymentencrypted credit card data
  • Billing informationeasily downloaded into
    existing systems
  • Successful if
  • Sufficient number of loyal customers
  • Products well known
  • Price not major purchasing criteria

CISCO Connection Online (CCO)
  • Benefitssaves the company 363 million per year
    in technical support, human resources, software
    distribution, marketing material
  • Customer serviceCisco Connection online
  • Online orderingInternet Product Center builds
    virtually all products to order
  • Order statuscustomer tools for finding answers
    to order status inquiries

Cisco Connection Online (CCO) (cont.)
  • Benefits to Cisco
  • Reduced operating costs for order taking
  • Enhanced technical support and customer service
  • Reduced technical support staff cost
  • Reduced software distribution costs
  • Lead times reduced fro 4-10 days to 2-3 days
  • Benefits to customers
  • Quick order configuration
  • Immediate cost determination
  • Collaboration with Cisco staff

Marshall Industries
  • Marshall Industries(a subsidiary of multinational
    distributor of electronic components known for
    its innovative uses of IT and the Web
  • Products and services
  • MarshallNet
  • Marshall on the Internet (portal)
  • Strategic European Internet
  • Electronic Design Center
  • PartnerNet
  • NetSeminar
  • Education and News Portal

Marshall Industries (cont.)
  • Survival strategy
  • Continuous improvement programs and innovations
  • Team-based organization, flat hierarchy,
    decentralized decision making
  • Profit sharing compensation for salespeople
  • CRM highly promoted
  • Web-based services create value between suppliers
    and customers
  • EC initiatives supported by
  • Changing internal organization
  • Changing internal procedures

Boeings PART Marketplace
  • Acts as an intermediary between the airlines and
    parts suppliers
  • Provides a single point of online access for
    airlines and parts providers to access the data
  • Goal provide its customers with one-stop
    shopping for online parts and maintenance
    information and ordering capability

Boeings PART Marketplace (cont.)
  • Spare parts business using traditional EDI
  • Mechanic tells purchasing department parts are
    needed, purchase is approved, purchase is made
  • Large airlines connect to Boeing's VAN
  • Boeing finds parts and delivers
  • Debut of PART on the Internet
  • Encourages customers to order parts
    electronicallycheap, easy, fast
  • 50 of customers using Internet within first year

Boeings PART Marketplace(cont.)
  • Benefits of PART online
  • Improved customer service
  • Significant operating savings
  • New sales opportunities
  • Customer service online reduced
  • Portable access to technical drawings/support
  • Portable Maintenance Aid (PMA)solves maintenance

Boeings PART Marketplace (cont.)
  • Benefits to Boeings customers
  • Increased productivityless time searching for
  • Reduced costsdelays at gate reduced because all
    information is available
  • Increased revenuesfaster service provides time

Buy Side MarketplacesOne-from-Many
  • Procurement methods
  • Buy from manufacturers, wholesalers, or retailers
    at their storefronts, from catalogs,and by
  • Buy from the catalog of an intermediary
  • Buy from an internal-buyers catalog
  • Conduct a bidding or tendering system
  • Buy at private or public auction sites
  • Join a group-purchasing system

Buy Side MarketplacesOne-from-Many (cont.)
  • Procurement managementthe coordination of all
    the activities relating to purchasing goods and
    services needed to accomplish the mission of an
  • Inefficiencies in procurement management
  • Purchasing personnel spend time and effort on
    procurement activities
  • Qualifying suppliers
  • Negotiating prices and terms
  • Building rapport with strategic suppliers
  • Carrying out supplier evaluation and

Buy Side MarketplacesOne-from-Many (cont.)
  • Buyers are sometimes too busy with the details of
    the smaller items
  • Organizations address this imbalance by
    implementing new purchasing models
  • Potential inefficiencies
  • Delays
  • Paying too much for rush orders
  • Maverick buyingunplanned purchases of items
    needed quickly, often from non-approved vendors
    or at higher prices

Exhibit 5.4Traditional Procurement Process
Buy Side MarketplacesOne-from-Many (cont.)
  • Goals of e-procurement
  • Increase purchasing agent productivity
  • Lower purchasing prices of items
  • Improve information flow and management
  • Minimize maverick (unplanned) buying
  • Improve payment process
  • Streamline purchasing process to make it simple
    and fast

Buy Side MarketplacesOne-from-Many (cont.)
  • Goals of e-procurement (cont.)
  • Reduce administrative processing cost per order
  • Find new suppliers and vendors to provide
    faster/cheaper goods and services
  • Integrate procurement process with budgetary
    control in an efficient and effective way
  • Minimize human errors in buying or shipping

Buy Side MarketplacesOne-from-Many (cont.)
  • Implementing e-procurement
  • Fit e-procurement into company EC strategy
  • Review and change procurement process itself
  • Provide interfaces between e-procurement with
    integrated EIS
  • Coordinate buyers information system with the

Buy Side E-MarketplacesReverse Auctions
  • Buy-side e-marketplacea Web-based marketplace
    in which a buyer opens an electronic market on
    its own server and invites potential suppliers to
    bid on the items the buyer needs also called the
    reverse auction, tendering, or bidding model
  • Request for quote (RFQ)the invitation to a
    buy-side marketplace (reverse auction)

Exhibit 5.6Buy-Side B2B Market Architecture
Conducting Reverse Auctions
  • Reverse auctions administered from a companys
    Web site
  • Bidding process lasts a day or more
  • Bidders may bid only once or view the lowest bid
    and rebid several times
  • Increasing number of reverse auction sites makes
    it impossible for suppliers to monitor all of
  • Online directories list open RFQs
  • Use software search-and-match agents to reduce
    the human burden in the bidding process

Bidding Through a Third-Party Auctioneer
  • United Technologies Corp. needs suppliers to make
    24 million worth of circuit boards
  • 2,500 suppliers are identified as possible
  • List is submitted to FreeMarkets (

48 (cont.)
  • FreeMarkets reduced the list to 50, based on
    considerations including
  • Plant location
  • Size of supplier
  • Plant capacity
  • Customer feedback
  • Detailed evaluation of the candidates

49 (cont.)
  • 3-hour auction conducted of online competitive
  • First bid was seen by all bidders
  • Using reverse auction approach, the bidders
    reduced their bids
  • Comprehensive analysis of several of the lowest
  • Then recommended the winners and collected its
    commission fees

Procurement Revolution at GE
  • TPN (now part of
  • Purchasing was inefficienttoo many
    administrative transactions
  • Process for each requisition took 7 days
  • Complex and time-consuming
  • Could only send out bids for 2 or 3 suppliers
  • Trading Process Network (TPN)electronic bids
  • Entire process takes 7 days (for suppliers to
  • 2 hours to send information to suppliers
  • Evaluate and award bids same day

Procurement Revolution at GE (cont.)
  • Benefits to GE
  • Labor declined 30 and material costs declined
    5-50--wider base of suppliers online
  • Redeployment of 50 of the staff
  • Takes half the time to identify suppliers,
    prepare a request for bid, negotiate a price, and
    award the contract
  • Invoices automatically reconciled reflecting

Procurement Revolution at GE (cont.)
  • Benefits to buyers
  • Worldwide supplier partnerships
  • Current business partners
  • Strengthen relationships
  • Streamline sourcing process
  • Rapid distribution of information
  • Transmit electronic drawings to multiple
  • Decrease sourcing cycle time
  • Quick receipt and comparison of pricing bids

Procurement Revolution at GE (cont.)
  • Benefits to suppliers
  • Increased sales volume
  • Expanded market reach, finding new buyers
  • Lowered administration costs for sales and
    marketing activities
  • Shortened requisition cycle time
  • Improved sales staff productivity
  • Streamlined bidding process

Aggregating Catalogs
  • Aggregating suppliers catalogs an internal
  • Maverick buying to save time leads to high prices
  • Aggregating all approved suppliers catalogs in
    one place
  • Reduced number of suppliers
  • Buyers at multiple corporate locations
  • Fewer and remote suppliers
  • Larger quantity/lower costs

Buying from MasterCardInternationals Internal
  • Online buying program at MasterCard
  • Allows corporate buyers to select goods and
    services from companys electronic catalog
  • Goal is to consolidate buying activities from
    multiple corporate sites, improve processing
    costs, reduce the supplier base
  • Procurement department defines
  • Scope of products or projects to buy
  • Invites vendors to bid or negotiate prices

MasterCard International (cont.)
  • Contract prices are stored in the internal
    electronic catalog
  • Final buyer at MasterCard compares available
  • Organizational purchasing decision coupled with
    an internal workflow management system
  • Internal electronic catalog is updated manually
    or by software agents
  • Payments are made with MasterCards corporate
    procurement card
  • By 2002, the system was being used by more than
    2,500 buyers

Group Purchasing
  • Group purchasingaggregation several buyers into
    volume purchases, so that better prices can be
  • Internal aggregation
  • Economy of scale
  • Reduced transaction processing cost
  • External aggregation
  • Aggregating demand online
  • Putting together orders from multiple buyers to
    make large volumes/lower costs

Exhibit 5.7Group Purchasing Process
Electronic Bartering
  • Bartering exchangean intermediary that links
    parties in a barter a company submits its
    surplus to the exchange and receives points of
    credit, which can be used to buy the items that
    the company needs from other exchange
  • Exchange of goods or services without the use of
  • Exchange a surplus for other need
  • Benefits
  • Faster than manually
  • Easier to match

Collaborative Commerce (C-Commerce)
  • Collaborative commerce (c-commerce)commerce
    consisting of activities between business
    partners in jointly planning, designing,
    developing, managing,and researching products and
  • Web-based systems used between and among
    suppliers for
  • Communication Design
  • Planning Information sharing
  • Information discovery

Collaborative Commerce (cont.)
  • Varieties of c-commerce
  • Joint design efforts
  • Forecasting
  • Between and within organizations
  • Aids communication and collaboration between
    headquarters and subsidiaries, franchisers and
  • C-commerce platform provides e-mail, message
    boards, chat rooms, online corporate data access
    around the globe, no matter what the time zone

Webcor Construction Goes Online with Its Partners
  • Webcor suffered from too much paperwork and poor
    communication with its
  • Architects
  • Designers
  • Building owners
  • Subcontractors
  • Webcors goal to turn its computer-aided design
    (CAD) drawings, memos, and other information into
    shared digital information

Webcor (cont.)
  • Webcor uses ASP that hosts its projects on a
    secured extranet
  • Major problem was getting everyone to accept
  • Complex
  • User training is necessary
  • Webcor was in a strong enough position to choose
    not to partner with anyone who would not use

Webcor (cont.)
  • Webcors business partners can post send, or edit
    CAD drawings, digital photos, memos, status
    reports, project histories
  • Partners have instant access to new building
  • Central meeting place where users can both
    download and transmit information to all parties,
    all with a PC

RetailerSupplier Collaboration Target
  • Target Corporation is a large retail
  • Conducts EC activities with about 20,000 trading
  • 1998established an extranet-based system for
    those partners that were not connected to its
    VAN-based EDI.

Target Corporation (cont.)
  • The extranet enabled the company to
  • Reach many more partners,
  • Use many applications not available on the
    traditional EDI
  • Streamline its communications and collaboration
    with suppliers
  • Business customers to create personalized Web

Continuous Replenishment Warner-Lambert
  • Warner-Lambert (WL) served as a pilot site for a
    program called Collaborative Planning,
    Forecasting, and Replenishment (CPFR)
  • Shared strategic plans, performance data, and
    market insight with Wal-Mart
  • Trading partners collaborate on making demand
  • WL increased its products shelf-fill rate from
    87 percent to 98 percent

Warner-Lambert (cont.)
  • WL is involved in another collaborative retail
    industry projectSupply-Chain Operations
    Reference (SCOR)
  • Divides supply chain operations into parts
  • Gives a framework with which to evaluate the
    effectiveness of their processes along the same
    supply chains to
  • Manufacturers
  • Suppliers
  • Distributors
  • Retailers

Reduction of Design Cycle Time Adaptec, Inc.
  • Microchip manufacturer supplying electronic
    equipment makers
  • Outsourced manufacturing tasks
  • Delivery times exceeded their competitors
  • Solution to the problem
  • Extranet and enterprise-level supply chain
    integrated software
  • Significantly reduced order-to-product delivery

Reduction of Product Development Time
Caterpillar, Inc.
  • Heavy machinery manufacturer uses extranet
  • Request for customized component directly to
    designers and suppliers ship to buyers
  • Connect engineering and manufacturing division
    with worldwide
  • Suppliers Factories
  • Distributors Customers
  • Overseas

Barriers to C-Commerce
  • C-commerce is moving ahead fairly slowly because
  • Technical reasons involving integration,
    standards, and networks
  • Security and privacy concerns over who has access
    control of information stored in a partners
  • Internal resistance to new models and approaches
  • Lack of internal skills to conduct c-commerce

Interorganizational Collaboration at Nygard of
  • Nygard has become a leader in adopting IT and
    e-commerce in the apparel industry
  • Company stays competitive by using EC to control
    costs of labor and manufacturing
  • Developed an ERP and supply chain management
    that controls all internal operations,
    purchasing, product development, accounting,
    production planning, sales
  • This enabled the company to develop tight
    integration with its trading partners

Nygard of Canada (cont.)
  • The moment that a customer buys a pair of pants
    at a partners retail store
  • Information moves from the POS terminal
  • Automatically generates a reorder at Nygard
  • SCM
  • Matches customers orders with the right fabrics
  • Searches the market pool for the most efficient
    combinations of other material for use with those

Nygard of Canada (cont.)
  • Sales trigger orders
  • Manufacturing automatically industries, and
    global manufacturers are willing to operate with
    razor-thin margins as fabrics, zippers, and
  • The moment that raw material is used, an
    automatic reorder of the material is generated
  • Allows just-in-time production
  • Quick order delivery (sometimes same day)

Nygard of Canada (cont.)
  • Web-based control system enables the company to
  • Conduct detailed profitability studies
  • Decisions are evaluated by impacts on the bottom
  • Decision support systems (DSS) models are used
    for this purpose

Infrastructure for B2B
  • Server to host database and applications
  • Software for executing sell-side (catalogs)
  • Software for conducting auctions and reverse
  • Software for e-procurement (buy-side)
  • Software for CRM
  • Security hardware and software
  • Software for building a storefront
  • Software for building exchanges
  • Telecommunications networks and protocols

Extranet and EDI
  • Value-added networks (VANs)private,
    third-party-managed networks that add
    communications services and security to existing
    common carriers used to implement traditional
    EDI systems
  • Internet-based EDIEDI that runs on the Internet
    and so is widely accessible to most companies,
    including SMEs

Extranet and EDI
  • Extranetssecured networks (by VPN), usually
    Internet-based, that allow business partners to
    access portions of each others intranets
    extended intranets.

  • Integration with existing information systems
  • Intranet-based work flow
  • Database management systems (DMBS)
  • Application packages
  • ERP
  • Back-end sell-side integration works for sellers
    but not buyers and vice versa

Integration (cont.)
  • Integration with business partners
  • Easy integration with one company-centric side
  • Not easy to integrate for many buyers or sellers
  • Need buyer owned shopping cart that can interface
    with back-end information systems

The Role of XML in B2B Integration
  • Companies interact easily and effectively by
    connecting to their servers, applications,
  • Standard protocols and data-representation
    schemes are needed
  • Web is based on the standard communication
    protocols useful only for displaying static
    visual Web pages
  • TCP/IP
  • HTTP
  • HTML

The Role of XML in B2B Integration (cont.)
  • XML (eXtensible Markup Language)standard (and
    its variants) used to improve compatibility
    between the disparate systems of business
    partners by defining the meaning of data in
    business documents
  • Used to increase
  • Interactivity
  • Accessibility with speech recognition systems

XML Unifies Air Cargo Tracking System
  • B2B intermediary, TradeVan Information Services
    of Taiwan provides information services about the
    cargo flights of different airlines
  • Different information systems have different
    query results
  • XML facilitates data exchange between
    heterogeneous databases
  • Information can be presented on wireless
    application protocol (WAP)-based cell phones

Air Cargo Tracking System (cont.)
  • System is expected to
  • Reduce delays significantly
  • Benefit of all members of the supply chain
  • Returns a standardized yet personalized
    presentation for different airlines
  • Enables customs brokers to reduce the cycle time
    by preparing declarations of imports faster

Air Cargo Tracking System (cont.)
  • Buyers and other supply chain partners can
    schedule production lines with precision and in
  • Quality of door-to-door delivery companies is
    improved through fast communication
  • Answers to queries can be derived much faster
  • Improves the supply chain by reducing
  • Delivery lead times
  • Inventory levels

The Role of Software Agentsin B2B EC
  • Agents role in the sell-side marketplace
  • B2C comparison-shopping
  • B2B agents collect information from sellers
    sites for buyers
  • Agents role in the buy-side marketplace
  • Assisting large number of buyers requesting
    quotes from multiple potential suppliers in

Managerial Issues
  • Can we justify the cost?
  • Which vendor(s) should we select?
  • Which model(s) should we use?
  • Do we need B2B marketing?
  • Should we reengineer our procurement system?
  • What restructuring will be required for the shift
    to e-procurement?
  • What integration would be useful?
  • What are the ethical issues in B2B?

  • The B2B field
  • The major B2B models
  • The characteristics of sell-side marketplaces
  • Sell-side intermediaries
  • The characteristics of buy-side marketplaces
  • Forward and reverse auctions
  • B2B aggregation and group purchasing
  • Collaborative EC
  • Characteristics of Internet-based EDI and the
    role of XML
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