B2B ECOMMERCE

B2B ECOMMERCE

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 Top 10 B2B Marketplaces: – http://www.bridgat.com/B2B Directories/

Procter & Gamble Intranet Copyright 2012 Pearson Education 4-3

Concepts, Characteristics, and Models of B2B E-Commerce THE BASIC TYPES OF B2B TRANSACTIONS AND ACTIVITIES – Sell-side – Buy-side – Exchanges – Supply chain improvements and collaborative commerce

Concepts, Characteristics, and Models of B2B E-Commerce THE BASIC TYPES OF B2B EMARKETPLACES AND SERVICES – One-to-Many and Many-to-One: Private EMarketplaces company-centric EC E-commerce that focuses on a single company’s buying needs (many-to- one, or buy-side) or selling needs (one-to- many, or sell-side)

Concepts, Characteristics, and Models of B2B E-Commerce – Many-to-Many: Public Exchanges exchanges (trading communities or trading exchanges) Many-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 public e-marketplaces Third-party exchanges open to all interested parties (sellers and buyers) – Supply Chain Improvers and Collaborative Commerce C-commerce/ Collaborative commerce is Online collaboration and interactions among the employees, business partners, and customers of diverse firms belonging to a trading community or industry segment.

Collaborative Commerce for UK Manufacturers http://www.wmccm.co.uk/WMCCM/DesktopDefault.aspx 4-7

Concepts, Characteristics, and Models of B2B E-Commerce B2B CHARACTERISTICS – Parties to the Transaction: Sellers, Buyers, and Intermediaries online intermediary An online third party that brokers a transaction online between a buyer and a seller; may be virtual or clickand-mortar E.g. Boeing’s PART marketplace – providing single online access points for airlines and parts’ suppliers

Selling Via Distributors and Other Intermediaries Manufacturers can sell directly to businesses, and they do so if the customers are large buyers. Frequently they use intermediaries to distribute their products to a large number of smaller buyers. The intermediaries buy products from many manufacturers and aggregate them into one catalog from which they sell to customers or to retailers.

Other E-Procurement Methods BUYING AT SELLERS’ SITES Purchasing Direct Goods ACQUISITION VIA ELECTRONIC BARTERING bartering exchange An 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 participants SELECTING AN APPROPRIATE E-PROCUREMENT SOLUTION E.g. Petronas e-procurement Portal (PePP)