E-Commerce Company-Centric B2B and E-Procurement
Chapter 6
Company-Centric B2B and E-Procurement
Learning Objectives
Upon completion of this chapter, you will be able to:
1. Describe the B2B field.
2. Describe the major types of B2B models.
3. Discuss the characteristics of the sell-side marketplace, including auctions.
4. Describe the sell-side intermediary models.
5. Describe the characteristics of the buy-side marketplace and e-procurement.
6. Explain how reverse auctions work in B2B.
7. Describe B2B aggregation and group purchasing models.
8. Describe infrastructure and standards requirements for B2B.
9. Describe Web EDI, XML, and Web services.
Content
General Motors’ B2B Initiatives
6.1 Concepts, Characteristics, and Models of B2B EC
6.2 One-to-Many: Sell-Side Marketplaces
6.3 Selling Via Auctions
6.4 Sell-Side Cases
6.5 One-from-Many: Buy-Side Marketplaces and E-Procurement
6.6 Buy-Side E-Marketplaces: Reverse Auctions
6.7 Other e-Procurement Methods
6.8 Infrastructure, Integration, and Software Agents in B2B E-Commerce
Managerial Issues
Real-World Case: Eastman Chemical Makes Procurement a Strategic Advantage
Appendix 6A From Traditional to Internet-Based EDI
Answers to Pause/Break Section Review Questions
Section 6.1 Review Questions
1. Define B2B.
Business–to-business e-commerce refers to transactions between businesses conducted electronically over the Internet, extranets, intranets or private networks.
2. Discuss the following: spot buying versus strategic sourcing, direct materials versus indirect materials, and vertical markets versus horizontal markets.
Spot buying is the purchase of goods and services as they are needed, usually at prevailing market prices. In contrast, strategic sourcing is the purchase of goods and services involving long-term contracts that are usually based on private negotiations. Direct materials are the materials that are used in the creation of a product whereas indirect materials are used to
Company-Centric B2B and E-Procurement
Learning Objectives
Upon completion of this chapter, you will be able to:
1. Describe the B2B field.
2. Describe the major types of B2B models.
3. Discuss the characteristics of the sell-side marketplace, including auctions.
4. Describe the sell-side intermediary models.
5. Describe the characteristics of the buy-side marketplace and e-procurement.
6. Explain how reverse auctions work in B2B.
7. Describe B2B aggregation and group purchasing models.
8. Describe infrastructure and standards requirements for B2B.
9. Describe Web EDI, XML, and Web services.
Content
General Motors’ B2B Initiatives
6.1 Concepts, Characteristics, and Models of B2B EC
6.2 One-to-Many: Sell-Side Marketplaces
6.3 Selling Via Auctions
6.4 Sell-Side Cases
6.5 One-from-Many: Buy-Side Marketplaces and E-Procurement
6.6 Buy-Side E-Marketplaces: Reverse Auctions
6.7 Other e-Procurement Methods
6.8 Infrastructure, Integration, and Software Agents in B2B E-Commerce
Managerial Issues
Real-World Case: Eastman Chemical Makes Procurement a Strategic Advantage
Appendix 6A From Traditional to Internet-Based EDI
Answers to Pause/Break Section Review Questions
Section 6.1 Review Questions
1. Define B2B.
Business–to-business e-commerce refers to transactions between businesses conducted electronically over the Internet, extranets, intranets or private networks.
2. Discuss the following: spot buying versus strategic sourcing, direct materials versus indirect materials, and vertical markets versus horizontal markets.
Spot buying is the purchase of goods and services as they are needed, usually at prevailing market prices. In contrast, strategic sourcing is the purchase of goods and services involving long-term contracts that are usually based on private negotiations. Direct materials are the materials that are used in the creation of a product whereas indirect materials are used to