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Company Centric B2b And Collaborative Commerce

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  • 1. Chapter 5 Company-Centric B2B and Collaborative Commerce
  • 2. Learning Objectives
    • Describe the B2B field
    • Describe the major types of B2B models
    • Describe the characteristics of the sell-side marketplace
    • Describe the sell-side intermediary models
    • Describe the characteristics of the buy-side marketplace and e-procurement
  • 3.
    • Explain how forward and backward auctions work in B2B
    • Describe B2B aggregation and group purchasing models
    • Describe collaborative e-commerce and interorganizational systems
    • Describe infrastructure and standards requirements for B2B
    Learning Objectives (cont.)
  • 4. General Motors’ B2B Initiatives
    • The Problem
      • EC initiatives—build-to-order project to be in place by 2005 reducing inventory of finished cars
      • What to do with manufacturing machines that are no longer sufficiently productive (assets problem)
      • Resource problem relating to procurement of commodity products
  • 5. General Motors’ (cont.)
    • The Solution
      • TradeXchange (now part of Covisint) online auctions of items like used machines for manufacturing
        • Significantly decreases time for sales
        • Increases dollar amount of the sales
      • EC initiatives at TradeXchange
        • Capital assets problem—implemented its own electronic market to conduct forward auctions
        • Procurement problem—automated the bidding, creating online reverse auctions on its e-procurement site
  • 6. General Motors’ (cont.)
    • The Results
      • Within just 89 minutes after the first forward auction opened, eight presses were sold for $1.8 million
      • In the first online reverse auction, GM purchased a large volume of rubber sealing packages for vehicle production at a significantly lower than the price GM had been paying through negotiated by manual tendering
  • 7. Concepts, Characteristics, and Models of B2 EC
    • Basic B2B Concepts
      • Business-to-business e-commerce (B2B EC)—transactions between businesses conducted electronically over the Internet, extranets, intranets, or private networks; also known as eB2B ( electronic B2B ) or just B2B
    • Market Size and Content
      • Expected to grow from $1.1 trillion in 2003 to $10 trillion by 2005, the percentage of Internet-based B2B from 2.1% in 2000 to 10% in 2005
  • 8. Concepts, Characteristics, and Models of B2 EC (cont.)
    • B2B EC Characteristics
      • Parties to the transaction
        • Online intermediary—an online third-party that brokers a transaction between a buyer and a seller; can be virtual or click-and-mortar; buyers; sellers
      • Types of transactions
        • Spot buying—the purchase of goods and services as they are needed, usually at prevailing market prices
        • Strategic sourcing—purchases involving long-term contracts that are usually based on private negotiations between sellers and buyers
  • 9. Concepts, Characteristics, and Models of B2 EC (cont.)
      • Types of materials
        • Direct materials—materials used in the production of a product (e.g., steel in a car or paper in a book)
        • Indirect materials—materials used to support production (e.g., office supplies or light bulbs)
        • MROs (maintenance, repairs, and operations)—indirect materials used in activities that support production
  • 10. Concepts, Characteristics, and Models of B2 EC (cont.)
      • Direction of trade
        • Vertical marketplaces—markets that deal with one industry or industry segment (e.g., steel, chemicals).
        • Horizontal marketplaces—markets that concentrate on a service or a product that is used in all types of industries (e.g., office supplies, PCs)
  • 11. Concepts, Characteristics, and Models of B2 EC (cont.)
    • The Basic B2B Transaction Types
      • Sell side—one seller to many buyers
      • Buy side—one buyer from many sellers
      • Exchanges—many sellers to many buyers
      • Collaborative commerce—communication and sharing of information, design, and planning among business partners
  • 12. Exhibit 5.1 Types of B2B E-Commerce
  • 13. One-to-Many and Many-to-One: Company-Centric Transactions
    • Company-centric EC—e-commerce that focuses on a single company’s buying needs (many-to-one, or buy-side) or selling needs (one-to-many, or sell-side)
    • Private e-marketplaces—markets in which the individual sell-side or buy-side company has complete control over participation in the selling or buying transaction
  • 14. Many-to-Many: Exchanges
    • Exchanges—many-to-many e-marketplaces, usually owned and run by a third party or a consortium, in which many buyers and many sellers meet electronically to trade with each other; also called trading communities, or trading exchanges
    • Public e-marketplaces—third-party markets that are open to all interested parties (sellers and buyers)
  • 15. Concepts, Characteristics, and Models of B2 EC (cont.)
    • Supply chain relationships in B2B
      • Interrelated subprocesses and roles
      • B2B applications offer competitive advantages for supply chain management (SCM)
    • Virtual service industries in B2B
      • Travel and tourism services
      • Real estate Online stock trading
      • Electronic payments Online financing
  • 16. Concepts, Characteristics, and Models of B2 EC (cont.)
    • Benefits of B2B
      • Eliminates paper and reduces administrative costs
      • Expedites cycle time
      • Lowers search costs and time for buyers
      • Increases productivity of employees dealing with buying and/or selling
      • Reduces errors and/or improves quality of services
      • Reduces inventory levels and costs
      • Increases production flexibility, permitting just-in-time delivery
      • Facilitates mass customization
      • Increases opportunities for collaboration
  • 17. Sell-Side Marketplaces:One-to-Many
    • Sell-side e-marketplace—a Web-based marketplace in which one company sells to many business buyers, frequently over an extranet
    • 3 major methods for direct sale in the one-to-many model:
      • Selling from electronic catalogs
      • Selling via forward auctions
      • One-to-one selling under a negotiated, long-term contract
  • 18. Sell-Side Marketplaces (cont.)
    • Virtual sellers—sellers in the sell-side marketplace can be click-and-mortar manufacturers or intermediaries, usually distributors or wholesalers
    • Customer service
      • Milacron, Inc .
        • Site contains 55,000 products, easy to use, securely handles selection, purchase, application
        • Technical service—expanded to provide a higher level of service
  • 19. Buying from Virtual Seller Bigboxx.com
    • Bigboxx.com.hk of Hong Kong
      • B2B office supply retailer services
      • Goal—sell products in various SE Asian countries
        • Offers more than 10,000 items
        • Uses more than 300 suppliers
      • Company portal attractive, easy to use
        • Browse online catalogs
        • Use search engines
        • Payments—cash or check upon delivery, automatic payments, credit card, purchasing card
  • 20. Bigboxx.com (cont.)
      • Delivery
        • Owns trucks and warehouses
        • Delivery scheduled online
        • Ordering system integrated with SAP-based back-office system
      • Value-added services
        • Track status of order
        • Check stock availability
        • Promotions
        • Customized prices
        • Group accounts and central approval
        • Standing orders automatically activated
        • Large number of reports and data available
  • 21. Exhibit 5.2 Sell-Side B2B Marketplace Architecture
  • 22. Direct Sales from Catalogs
    • Companies may:
      • Offer one catalog for all customers
      • Customized catalog for each customer
      • Facilitate the B2B direct sale by providing the buyer with a buyer customized shopping cart
    • Configuration and customization
      • Efficient customization for direct sales
      • Business customers customize products, receive price quote, submit order
  • 23. Direct Sales from Catalogs (cont.)
    • Benefits
      • Lower order-processing costs
      • Faster ordering cycle
      • Fewer errors in ordering and product configuration
      • Lower search costs for buyers
      • Lower search costs for sellers
      • Lower logistics costs
  • 24. Direct Sales from Catalogs (cont.)
    • Benefits (cont.)
      • Ability to offer different catalogs and prices to different customers and to customize products and services efficiently
    • Limitations
      • Channel conflicts with distribution systems
      • High cost when traditional EDI used
      • Large number of business partners is needed to justify system
  • 25. Selling Via Auctions
    • Using auctions on the sell-side
      • Revenue generation
      • Increased page views
        • Stickiness—characteristic of customer loyalty to a Web site, demonstrated by the number and length of visits to a site
      • Member acquisition and retention—bidding transactions result in additional registered members
  • 26. Selling Via Auctions (cont.)
    • Selling from own site when:
      • Large companies that conduct auctions frequently don’t benefit from using intermediaries
      • E-marketplace already in use, cost of adding auction not too high
    • Intermediary-oriented e-marketplace—an e-marketplace in which intermediaries operate
  • 27. Selling Via Auctions (cont.)
    • Using intermediaries when:
      • No resources required
      • Own and control auction information
      • Fast time to market
      • Searching and reporting
        • Search and report all auction activities
        • Standard reports available
        • Additional analysis of complex information
  • 28. Selling Via Auctions (cont.)
    • Billing and collection
      • Automatic calculation of shipping weights and charges
      • Payment— encrypted credit card data
      • Billing information— easily downloaded into existing systems
      • Successful if:
        • Sufficient number of loyal customers
        • Products well known
        • Price not major purchasing criteria
  • 29. CISCO Connection Online (CCO)
    • Benefits—saves the company $363 million per year in technical support, human resources, software distribution, marketing material
    • Customer service—Cisco Connection online
    • Online ordering—Internet Product Center builds virtually all products to order
    • Order status—customer tools for finding answers to order status inquiries
  • 30. Cisco Connection Online (CCO) (cont.)
    • Benefits to Cisco
      • Reduced operating costs for order taking
      • Enhanced technical support and customer service
      • Reduced technical support staff cost
      • Reduced software distribution costs
      • Lead times reduced fro 4-10 days to 2-3 days
    • Benefits to customers
      • Quick order configuration
      • Immediate cost determination
      • Collaboration with Cisco staff
  • 31. Marshall Industries
    • Marshall Industries —(a subsidiary of AvnetMarshall—avnet.com) multinational distributor of electronic components known for its innovative uses of IT and the Web
      • Products and services
        • MarshallNet
        • Marshall on the Internet (portal)
        • Strategic European Internet
        • Electronic Design Center
        • PartnerNet
        • NetSeminar
        • Education and News Portal
  • 32. Marshall Industries (cont.)
      • Survival strategy
        • Continuous improvement programs and innovations
        • Team-based organization, flat hierarchy, decentralized decision making
        • Profit sharing compensation for salespeople
        • CRM highly promoted
        • Web-based services create value between suppliers and customers
        • EC initiatives supported by:
          • Changing internal organization
          • Changing internal procedures
  • 33. Boeing’s PART Marketplace
    • Acts as an intermediary between the airlines and parts’ suppliers
      • Provides a single point of online access for airlines and parts’ providers to access the data needed
    • Goal: provide its customers with one-stop shopping for online parts and maintenance information and ordering capability
  • 34.
      • Spare parts business using traditional EDI
        • Mechanic tells purchasing department parts are needed, purchase is approved, purchase is made
        • Large airlines connect to Boeing's VAN
        • Boeing finds parts and delivers
      • Debut of PART on the Internet
        • Encourages customers to order parts electronically—cheap, easy, fast
        • 50% of customers using Internet within first year
    Boeing’s PART Marketplace (cont.)
  • 35.
    • Benefits of PART online
      • Improved customer service
      • Significant operating savings
      • New sales opportunities
      • Customer service online reduced
      • Portable access to technical drawings/support
      • Portable Maintenance Aid (PMA)—solves maintenance problems
    Boeing’s PART Marketplace (cont.)
  • 36. Boeing’s PART Marketplace (cont.)
    • Benefits to Boeing’s customers
      • Increased productivity—less time searching for information
      • Reduced costs—delays at gate reduced because all information is available
      • Increased revenues—faster service provides time savings
  • 37. Buy Side Marketplaces: One-from-Many
    • Procurement methods
      • Buy from manufacturers, wholesalers, or retailers at their storefronts, from catalogs,and by negotiation
      • Buy from the catalog of an intermediary
      • Buy from an internal-buyer’s catalog
      • Conduct a bidding or tendering system
      • Buy at private or public auction sites
      • Join a group-purchasing system
  • 38. Buy Side Marketplaces: One-from-Many (cont.)
    • Procurement management—the coordination of all the activities relating to purchasing goods and services needed to accomplish the mission of an organization
    • Inefficiencies in procurement management
      • Purchasing personnel spend time and effort on procurement activities
      • Qualifying suppliers
      • Negotiating prices and terms
      • Building rapport with strategic suppliers
      • Carrying out supplier evaluation and certification
  • 39. Buy Side Marketplaces: One-from-Many (cont.)
      • Buyers are sometimes too busy with the details of the smaller items
      • Organizations address this imbalance by implementing new purchasing models
    • Potential inefficiencies:
      • Delays
      • Paying too much for rush orders
      • Maverick buying—unplanned purchases of items needed quickly, often from non-approved vendors or at higher prices
  • 40. Exhibit 5.4 Traditional Procurement Process
  • 41. Buy Side Marketplaces: One-from-Many (cont.)
    • Goals of e-procurement
      • Increase purchasing agent productivity
      • Lower purchasing prices of items
      • Improve information flow and management
      • Minimize maverick (unplanned) buying
      • Improve payment process
      • Streamline purchasing process to make it simple and fast
  • 42. Buy Side Marketplaces: One-from-Many (cont.)
    • Goals of e-procurement (cont.)
      • Reduce administrative processing cost per order
      • Find new suppliers and vendors to provide faster/cheaper goods and services
      • Integrate procurement process with budgetary control in an efficient and effective way
      • Minimize human errors in buying or shipping process
  • 43. Buy Side Marketplaces: One-from-Many (cont.)
    • Implementing e-procurement
      • Fit e-procurement into company EC strategy
      • Review and change procurement process itself
      • Provide interfaces between e-procurement with integrated EIS
      • Coordinate buyer’s information system with the sellers
  • 44. Buy Side E-Marketplaces: Reverse Auctions
    • Buy-side e-marketplace—a Web-based marketplace in which a buyer opens an electronic market on its own server and invites potential suppliers to bid on the items the buyer needs; also called the reverse auction, tendering, or bidding model
    • Request for quote (RFQ)—the “invitation” to a buy-side marketplace (reverse auction)
  • 45. Exhibit 5.6 Buy-Side B2B Market Architecture
  • 46. Conducting Reverse Auctions
    • Reverse auctions administered from a company’s Web site
      • Bidding process lasts a day or more
      • Bidders may bid only once or view the lowest bid and rebid several times
    • Increasing number of reverse auction sites makes it impossible for suppliers to monitor all of them
      • Online directories list open RFQs
      • Use software search-and-match agents to reduce the human burden in the bidding process
  • 47. Bidding Through a Third-Party Auctioneer: Freemarkets.com
    • United Technologies Corp. needs suppliers to make $24 million worth of circuit boards
      • 2,500 suppliers are identified as possible contractors
      • List is submitted to FreeMarkets (freemarkets.com)
  • 48. Freemarkets.com (cont.)
    • FreeMarkets reduced the list to 50, based on considerations including:
      • Plant location
      • Size of supplier
      • Plant capacity
      • Customer feedback
      • Detailed evaluation of the candidates
  • 49. Freemarkets.com (cont.)
    • 3-hour auction conducted of online competitive bidding:
      • First bid was seen by all bidders
      • Using reverse auction approach, the bidders reduced their bids
    • Comprehensive analysis of several of the lowest bidders
    • Then recommended the winners and collected its commission fees
  • 50. Procurement Revolution at GE
    • TPN (now part of gxs.com)
      • Purchasing was inefficient—too many administrative transactions
        • Process for each requisition took 7 days
        • Complex and time-consuming
        • Could only send out bids for 2 or 3 suppliers
      • Trading Process Network (TPN)—electronic bids
        • Entire process takes 7 days (for suppliers to bid)
        • 2 hours to send information to suppliers
        • Evaluate and award bids same day
  • 51. Procurement Revolution at GE (cont.)
    • Benefits to GE
      • Labor declined 30% and material costs declined 5%-50%--wider base of suppliers online
      • Redeployment of 50% of the staff
      • Takes half the time to identify suppliers, prepare a request for bid, negotiate a price, and award the contract
      • Invoices automatically reconciled reflecting modifications
  • 52. Procurement Revolution at GE (cont.)
    • Benefits to buyers
      • Worldwide supplier partnerships
      • Current business partners
        • Strengthen relationships
        • Streamline sourcing process
      • Rapid distribution of information
      • Transmit electronic drawings to multiple suppliers
      • Decrease sourcing cycle time
      • Quick receipt and comparison of pricing bids
  • 53. Procurement Revolution at GE (cont.)
    • Benefits to suppliers
      • Increased sales volume
      • Expanded market reach, finding new buyers
      • Lowered administration costs for sales and marketing activities
      • Shortened requisition cycle time
      • Improved sales staff productivity
      • Streamlined bidding process
  • 54. Aggregating Catalogs
    • Aggregating suppliers’ catalogs: an internal marketplace
      • Maverick buying to save time leads to high prices
      • Aggregating all approved suppliers’ catalogs in one place
    • Reduced number of suppliers
      • Buyers at multiple corporate locations
        • Fewer and remote suppliers
        • Larger quantity/lower costs
  • 55. Buying from MasterCard International’s Internal Catalog
    • Online buying program at MasterCard:
      • Allows corporate buyers to select goods and services from company’s electronic catalog
      • Goal is to consolidate buying activities from multiple corporate sites, improve processing costs, reduce the supplier base
    • Procurement department defines:
      • Scope of products or projects to buy
      • Invites vendors to bid or negotiate prices
  • 56. MasterCard International (cont.)
    • Contract prices are stored in the internal electronic catalog
    • Final buyer at MasterCard compares available alternatives
      • Organizational purchasing decision coupled with an internal workflow management system
      • Internal electronic catalog is updated manually or by software agents
      • Payments are made with MasterCard’s corporate procurement card
      • By 2002, the system was being used by more than 2,500 buyers
  • 57. Group Purchasing
    • Group purchasing—aggregation several buyers into volume purchases, so that better prices can be negotiated
      • Internal aggregation
        • Economy of scale
        • Reduced transaction processing cost
      • External aggregation
        • Aggregating demand online
        • Putting together orders from multiple buyers to make large volumes/lower costs
  • 58. Exhibit 5.7 Group Purchasing Process
  • 59. Electronic Bartering
    • Bartering exchange—an intermediary that links parties in a barter; a company submits its surplus to the exchange and receives points of credit, which can be used to buy the items that the company needs from other exchange participants
      • Exchange of goods or services without the use of money
      • Exchange a surplus for other need
      • Benefits:
        • Faster than manually
        • Easier to match
  • 60. Collaborative Commerce (C-Commerce)
    • Collaborative commerce (c-commerce)—commerce consisting of activities between business partners in jointly planning, designing, developing, managing,and researching products and services
    • Web-based systems used between and among suppliers for:
      • Communication Design
      • Planning Information sharing
      • Information discovery
  • 61. Collaborative Commerce (cont.)
    • Varieties of c-commerce:
      • Joint design efforts
      • Forecasting
      • Between and within organizations
    • Aids communication and collaboration between h eadquarters and subsidiaries, franchisers and franchisees
    • C-commerce platform provides e-mail, message boards, chat rooms, online corporate data access around the globe, no matter what the time zone
  • 62. Webcor Construction Goes Online with Its Partners
    • Webcor suffered from too much paperwork and poor communication with its:
      • Architects
      • Designers
      • Building owners
      • Subcontractors
    • Webcor’s goal: to turn its computer-aided design (CAD) drawings, memos, and other information into shared digital information
  • 63. Webcor (cont.)
    • Webcor uses ASP that hosts its projects on a secured extranet
    • Major problem was getting everyone to accept software:
      • Complex
      • User training is necessary
    • Webcor was in a strong enough position to choose not to partner with anyone who would not use ProjectNet
  • 64. Webcor (cont.)
    • Webcor’s business partners can post send, or edit CAD drawings, digital photos, memos, status reports, project histories
      • Partners have instant access to new building drawings
      • Central meeting place where users can both download and transmit information to all parties, all with a PC
  • 65. Retailer–Supplier Collaboration: Target Corporation
    • Target Corporation is a large retail conglomerate:
      • Conducts EC activities with about 20,000 trading partners
      • 1998—established an extranet-based system for those partners that were not connected to its VAN-based EDI.
  • 66. Target Corporation (cont.)
    • The extranet enabled the company to:
      • Reach many more partners,
      • Use many applications not available on the traditional EDI
      • Streamline its communications and collaboration with suppliers
      • Business customers to create personalized Web pages
  • 67. Continuous Replenishment: Warner-Lambert
    • Warner-Lambert (WL) served as a pilot site for a program called Collaborative Planning, Forecasting, and Replenishment (CPFR)
      • Shared strategic plans, performance data, and market insight with Wal-Mart
      • Trading partners collaborate on making demand forecasts
    • WL increased its products’ shelf-fill rate from 87 percent to 98 percent
  • 68. Warner-Lambert (cont.)
    • WL is involved in another collaborative retail industry project—Supply-Chain Operations Reference (SCOR):
      • Divides supply chain operations into parts
      • Gives a framework with which to evaluate the effectiveness of their processes along the same supply chains to:
        • Manufacturers
        • Suppliers
        • Distributors
        • Retailers
  • 69. Reduction of Design Cycle Time: Adaptec, Inc.
    • Microchip manufacturer supplying electronic equipment makers
      • Outsourced manufacturing tasks
      • Delivery times exceeded their competitors
    • Solution to the problem
      • Extranet and enterprise-level supply chain integrated software
      • Significantly reduced order-to-product delivery time
  • 70. Reduction of Product Development Time: Caterpillar, Inc.
    • Heavy machinery manufacturer uses extranet
      • Request for customized component directly to designers and suppliers ship to buyers
      • Connect engineering and manufacturing division with worldwide
        • Suppliers Factories
        • Distributors Customers
        • Overseas
  • 71. Barriers to C-Commerce
    • C-commerce is moving ahead fairly slowly because:
      • Technical reasons involving integration, standards, and networks
      • Security and privacy concerns over who has access control of information stored in a partner’s database
      • Internal resistance to new models and approaches
      • Lack of internal skills to conduct c-commerce
  • 72. Interorganizational Collaboration at Nygard of Canada
    • Nygard has become a leader in adopting IT and e-commerce in the apparel industry
      • Company stays competitive by using EC to control costs of labor and manufacturing
      • Developed an ERP and supply chain management that controls all internal operations, purchasing, product development, accounting, production planning, sales
    • This enabled the company to develop tight integration with its trading partners
  • 73. Nygard of Canada (cont.)
    • The moment that a customer buys a pair of pants at a partner’s retail store:
      • Information moves from the POS terminal
      • Automatically generates a reorder at Nygard
    • SCM:
      • Matches customers’ orders with the right fabrics
      • Searches the market pool for the most efficient combinations of other material for use with those fabrics
  • 74. Nygard of Canada (cont.)
    • Sales trigger orders
    • Manufacturing automatically industries, and global manufacturers are willing to operate with razor-thin margins as fabrics, zippers, and buttons
    • The moment that raw material is used, an automatic reorder of the material is generated
      • Allows just-in-time production
      • Quick order delivery (sometimes same day)
  • 75. Nygard of Canada (cont.)
    • Web-based control system enables the company to:
      • Conduct detailed profitability studies
      • Decisions are evaluated by impacts on the bottom line
      • Decision support systems (DSS) models are used for this purpose
  • 76. Infrastructure for B2B
    • Server to host database and applications
    • Software for executing sell-side (catalogs)
    • Software for conducting auctions and reverse auctions
    • Software for e-procurement (buy-side)
    • Software for CRM
    • Security hardware and software
    • Software for building a storefront
    • Software for building exchanges
    • Telecommunications networks and protocols
  • 77. Extranet and EDI
    • Value-added networks (VANs)—private, third-party-managed networks that add communications services and security to existing common carriers; used to implement traditional EDI systems
    • Internet-based EDI—EDI that runs on the Internet and so is widely accessible to most companies, including SMEs
  • 78. Extranet and EDI
    • Extranets—secured networks (by VPN), usually Internet-based, that allow business partners to access portions of each other’s intranets; “extended intranets.”
  • 79. Integration
    • Integration with existing information systems issues
      • Intranet-based work flow
      • Database management systems (DMBS)
      • Application packages
      • ERP
      • Back-end sell-side integration works for sellers but not buyers and vice versa
  • 80. Integration (cont.)
    • Integration with business partners
      • Easy integration with one company-centric side
      • Not easy to integrate for many buyers or sellers
      • Need buyer owned shopping cart that can interface with back-end information systems
  • 81. The Role of XML in B2B Integration
    • Companies interact easily and effectively by connecting to their servers, applications, databases
    • Standard protocols and data-representation schemes are needed
    • Web is based on the standard communication protocols useful only for displaying static visual Web pages:
      • TCP/IP
      • HTTP
      • HTML
  • 82. The Role of XML in B2B Integration (cont.)
    • XML (eXtensible Markup Language)—standard (and its variants) used to improve compatibility between the disparate systems of business partners by defining the meaning of data in business documents
      • Used to increase:
        • Interactivity
        • Accessibility with speech recognition systems
  • 83. XML Unifies Air Cargo Tracking System
    • B2B intermediary, TradeVan Information Services of Taiwan provides information services about the cargo flights of different airlines
      • Different information systems have different query results
      • XML facilitates data exchange between heterogeneous databases
      • Information can be presented on wireless application protocol (WAP)-based cell phones
  • 84. Air Cargo Tracking System (cont.)
    • System is expected to:
      • Reduce delays significantly
      • Benefit of all members of the supply chain
      • Returns a standardized yet personalized presentation for different airlines
      • Enables customs brokers to reduce the cycle time by preparing declarations of imports faster
  • 85. Air Cargo Tracking System (cont.)
    • Buyers and other supply chain partners can schedule production lines with precision and in advance
    • Quality of door-to-door delivery companies is improved through fast communication
      • Answers to queries can be derived much faster
      • Improves the supply chain by reducing:
        • Delivery lead times
        • Inventory levels
  • 86. The Role of Software Agents in B2B EC
    • Agent’s role in the sell-side marketplace
      • B2C comparison-shopping
      • B2B agents collect information from sellers’ sites for buyers
    • Agent’s role in the buy-side marketplace
      • Assisting large number of buyers requesting quotes from multiple potential suppliers in buy-side
  • 87. Managerial Issues
    • Can we justify the cost?
    • Which vendor(s) should we select?
    • Which model(s) should we use?
    • Do we need B2B marketing?
    • Should we reengineer our procurement system?
    • What restructuring will be required for the shift to e-procurement?
    • What integration would be useful?
    • What are the ethical issues in B2B?
  • 88. Summary
    • The B2B field
    • The major B2B models
    • The characteristics of sell-side marketplaces
    • Sell-side intermediaries
    • The characteristics of buy-side marketplaces
    • Forward and reverse auctions
    • B2B aggregation and group purchasing
    • Collaborative EC
    • Characteristics of Internet-based EDI and the role of XML