Professional Documents
Culture Documents
ELECTRONIC MARKETS
E-marketplaces are emerging to serve each point of every industry's supply chain E-markets are highly collaborative EBusiness models that organize complex business processes between multiple participants into a virtual commerce community
efficient transactional processes new business relationships new business models new businesses
E-MARKETPLACES: CATEGORIES
EMERGENCE OF E-MARKETS
Alliance of IBM - i2 - Ariba Alliance of GM - Ford - Chrysler Alliance of mySAP- Commerce One - Oracle chemdex, plasticsnet, e-steel, paperexchange, metalsite, capacityweb, mro, bandx, logisticsweb, etc. In India: Indiamarkets.com, eBizchem.com, Autoexchanges
E-MARKETPLACES: A TAXONOMY
What is Bought
Operating
How it is bought
MRO HUBS
BENEFITS TO BUSINESSES
Extend the presence and reach of a company Facilitate doing business with anyone, anytime, anywhere Aggregation of content and facilitation of workflow lead to significant reduction in transaction costs Cycle times are reduced and deliveries are quicker Improves relationship with trading partners market efficiencies
BENEFITS TO BUYERS
Aggregation of multiple suppliers Direct access to suppliers and through dynamic pricing Location and tracking of new suppliers Provides more negotiating power Leads to quick response buyers
BENEFITS TO SUPPLIERS
Provides reach to vast, untapped global markets True value of products can be realized through aggregation and participation of buyers Enables to support JIT practices Leads to quick response suppliers
Buyer X : (50 A, 10 B) Buyer Y : (20 B, 30 C) Buyer Z : (40 A, 20 C, 10 D) Bundle 1: (90 A) Negotiated contract Bundle 2: (30 B, 50 C) Sealed bid auction Bundle 3: (10 D) Dynamic auction
BUNDLING
An optimization algorithm decides the best bids and handpicks the optimal subset of bids, based on cost, delivery times, etc.
TECHNOLOGY
Authentication and security Electronic payment Software architecture Distributed objects Agents and mobility Scalability Interoperability
with existing best practices with existing business processes with existing catalogs with ERP software with the backend with other E-markets
E-PROCUREMENT
All activities involved in obtaining materials and services and managing their inflow into an organization toward the enduser Basic steps:
EMERGENCE OF E-PROCUREMENT
Electronic catalogs Internet search engines Web-EDI On-line auctions and bidding Advances in E-commerce
E-PROCUREMENT PROCESS
CONCLUSIONS
E-markets are key to faster and more efficient trade E-markets have a positive influence all through the supply chain There are challenging technical and technological issues in setting up and operating E-markets E-procurement has emerged in a big way