What were the key stages in the evolution of B2B e-commerce?
- Automated order entry systems - telephone modems to send digital orders’
- Electronic data interchange (EDI) - communication standard for sharing procurement documents
- B2B e-commerce Web sites - came with the commercialization of the Internet
- Net marketplaces - brings together suppliers with potential purchasing firms
- Private industrial networks - natural extension of EDI
Mention some potential benefits of B2B e-commerce
Lower administrative costs, lower search costs for buyers, reduced inventory costs, improved quality of products
Mention some potential risks and challenges of B2B e-commerce
Lack of real-time data, environmental impacts, natural disasters, labour concerns
What is the procurement process?
How firms purchase goods they need to produce goods for consumers
What are the two different types of procurements?
- Purchased of direct goods (directly involved in the production process)
- Purchased of indirect goods (all the other goods not directly involved in production)
What are the two different methods of purchasing goods?
- Contract purchases (long-term written agreements t0 purchase)
- Spot purchases (purchase of goods based on immediate needs)
What does Multi-tier supply chain describe?
The chain of primary, secondary and tertiary suppliers (tier 3)
What are some major trends in supply chain management?
- Supply chain management (SCM) - activities to coordinate key players in their procurement process
- Just-in-time production - eliminate excess inventory
- Lean production - elimination of waste throughout the customer value chain
- Supply chain simplifications - reduce size of supply chain
- Adaptive supply chains
- Accountable supply chains
- Sustainable supply chains
What are some major trends in collaborative commerce?
- EDI
- Mobile B2B
- Cloud-based B2B systems
- Contemporary supply chain management (SCM) - based on supply chain simplifications, just in time and lean production
- Collaborative commerce
Social networks
What are some characteristics of Net marketplaces?
- Bias
- Ownership (industry vs. third party)
- Pricing mechanism
- Value creation
- Scope/focus (horizontal/vertical)
- Access to markets (private vs. public)
What are the 4 main types of “pure” net marketplaces?
- E-distributors - operates in a horizontal market serving many different industries with products from many different suppliers
- E-procurement net marketplaces - require paid fee to join the market and operates in a horizontal market
- Exchanges - vertical markets with a dynamic real-time environment. Charges commission on each transaction
- Industry consortia - vertical markets enabling buyers to purchase direct inputs from a limited set of invited participants
What does MRO stand for?
Maintenance, repair and operation supply
What are some objectives of private industrial networks?
- Developing efficient purchasing and selling business processes industry-wide
- Developing industry-wide resource planning to supplement enterprise-wide resource planning
- Increasing supply chain visibility
- Achieving closer buyer-supplier relationships
What are some forms of collaboration used by private industrial networks?
- CPFR or industry-wide collaborative resource planning, forecasting and replenishment
- Supply chain and distribution chain visibility
- Marketing and product design collaboration
