Volkswagen: B2B E-Marketplace
E-Marketplace Business to Business (B2B) e-marketplaces are the growing trend in the B2B e-commerce business model. Businesses from all industries and countries can gather, perform commerce functions, share mission- critical information, and deploy infrastructure applications that allow those organizations to tie their internal systems to each other.
But some companies - the largest ones - don't have to play in the generic B2B e-marketplaces. Instead, they can build their own and literally require that their suppliers participate. Once such company is Volkswagen AG. Its B2B e- marketplace is called VWgroupsupply.com (www. vwgroupsupply. com).
Volkswagen AG offers eight brands of automobiles- Volkswagen (passenger), Volkswagen Commercial Vehicles, Audi, Bentley, Bugatti, Lamborghini, Seat, and Skoda. In 2003, Volkswagen spent almost 60 billion euros, or approximately $ 77 billion, on components, automotive parts, and MRO materials for its manufacturing operations. When you spend that much money with your suppliers, you can open and run your own B2B e-marketplace. VWgroupsupply.com handles 90 percent of Volkswagen global purchases. Almost all requests for quotes, contract negotiations, catalog updating and buying, purchase order management, vehicle program management, and payments are handled electronically and online through VWgroupsupply.com.
Gains in efficiency and productivity coupled with material costs reductions have been tremendous. The cost savings alone generated over the last three years were more than 100 million euros, or approximately $ 127 million.
Volkswagen requires that each of its 5,500 suppliers use VWgroupsupply.com for any interactions. Suppliers place product and pricing catalogs on the system, respond to requests for quotes, and collaborate with Volkswagen engineers on new product designs, all in the safe and secure environment of Volkswagen's proprietary B2B e- marketplace.
By requiring its suppliers to interact with
But some companies - the largest ones - don't have to play in the generic B2B e-marketplaces. Instead, they can build their own and literally require that their suppliers participate. Once such company is Volkswagen AG. Its B2B e- marketplace is called VWgroupsupply.com (www. vwgroupsupply. com).
Volkswagen AG offers eight brands of automobiles- Volkswagen (passenger), Volkswagen Commercial Vehicles, Audi, Bentley, Bugatti, Lamborghini, Seat, and Skoda. In 2003, Volkswagen spent almost 60 billion euros, or approximately $ 77 billion, on components, automotive parts, and MRO materials for its manufacturing operations. When you spend that much money with your suppliers, you can open and run your own B2B e-marketplace. VWgroupsupply.com handles 90 percent of Volkswagen global purchases. Almost all requests for quotes, contract negotiations, catalog updating and buying, purchase order management, vehicle program management, and payments are handled electronically and online through VWgroupsupply.com.
Gains in efficiency and productivity coupled with material costs reductions have been tremendous. The cost savings alone generated over the last three years were more than 100 million euros, or approximately $ 127 million.
Volkswagen requires that each of its 5,500 suppliers use VWgroupsupply.com for any interactions. Suppliers place product and pricing catalogs on the system, respond to requests for quotes, and collaborate with Volkswagen engineers on new product designs, all in the safe and secure environment of Volkswagen's proprietary B2B e- marketplace.
By requiring its suppliers to interact with