1. Chapter 5 B2B E-Commerce

2. 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.
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1 private consortia
2 public e-marketplaces
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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
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5. 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
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6. 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)
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7. 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
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8. 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
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9. 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)
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Activities
Case 5.1
Case 5.2
Case 5.3
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