Business-to-business and B2b E-marketplace

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Closing Case Study One

When you’re Big, You Can Be Your own B2B E-Marketplace.

Question 1 :-

Volkwagen operates its own proprietary B2B e-marketplace in which its suppliers participate. What are the disadvantages to Volkswagen of not using a generic B2B e-marketplace with even more suppliers? What are the advantages to Volkswagen of developing and using its own proprietary B2B e-marketplace?

Answer :-

The disadvantages to Volkswagen of not using a generic B2B e-marketplace with even more suppliers is difficult for organization to search an e-marketplace for suitable suppliers and then enter into negotiations outside the e-marketplace. This happen for organizations needing to purchase millions of dollar in inventory, parts, or raw materials, and it occurs for organizations wanting to establish a long-term relationship with just one supplier. Relationships among businesses in B2B are very important. These relationships, characterized by trust and continuity, extend to the IT realm. In the B2B business model, you must provide a level of integration of your IT systems with those of your business partners. The advantages to Volkswagen of developing and using its own proprietary B2B e-marketplace because they spend the money with suppliers, so that its can open and run their own B2B e-marketplace. Volkswagen handles 90% of Volkswagen global purchases. Almost all request for quotes, contract negotiations, catalogue updating and buying, purchase-order management, vehicle program managements, and payment are handled electronically and online through VWgroupsupply.com. Volkswagen Ag offers eight brands of automobiles Volkswagen (passenger), Volkswagen Commercials Vehicles, Audi, Bentley, Bugatti, Lamborghini, Seat, and Skoda. Volkswagen spent almost 60billion euro, or approximately $77billion, on components, automotive parts, and MRO materials for its manufacturing operations.

Question 2 :-

When the Volkswagen needs a new part...
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