e-Hubs

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e-Hubs

  1. 1. Kaplan & Sawhney e-Hubs: The New B2B Marketplaces Harvard Business Review, May/June 2000 Prepared by Wesley Shu
  2. 2. Business-To-Business – B2B (Continued) <ul><li>Electronic Exchanges are E-marketplaces in which there are many sellers and many buyers. </li></ul>
  3. 3. Inputs – What businesses buy? <ul><li>Operating inputs </li></ul><ul><ul><li>maintenance, repair and operating (MRO) goods </li></ul></ul><ul><li>Manufacturing inputs </li></ul><ul><ul><li>raw materials and components that go directly into the products or process </li></ul></ul>
  4. 4. Sourcing – How they buy? <ul><li>Systematic sourcing </li></ul><ul><ul><li>Regular or recursive sourcing. Each cycle is similar in quantity, content, routing, etc. </li></ul></ul><ul><li>Spot sourcing </li></ul><ul><ul><li>One-shot sourcing. Irregular </li></ul></ul><ul><ul><li>fulfill an immediate need at the lowest possible cost. </li></ul></ul>
  5. 5. MRO Hubs (systematic operating) <ul><li>MRO: maintenance, repair & operating </li></ul><ul><li>concentrate on goods with low value. </li></ul><ul><li>The transaction cost is relatively higher. </li></ul><ul><li>Di-sintermediate - bypass existing middlemen in the channel </li></ul><ul><li>E.g., mro.com (IBM subsidiary) </li></ul>
  6. 6. Catalog Hubs <ul><li>Systematic, manufacturing </li></ul><ul><li>Industry specific (manufacturing inputs are moer specific than operating ones.) – the only difference from MRO Hubs </li></ul>
  7. 7. Yield Manager <ul><li>Spot, operating </li></ul><ul><li>Good in the case of high price and demand volatility and </li></ul><ul><li>Things not easy to liquidate or acquire, e.g., huge fixed asset, human resources . </li></ul>
  8. 8. Exchanges <ul><li>Spot, manufacturing </li></ul><ul><li>Exchange input parts to manage peaks and ebbs </li></ul><ul><li>First, establish relationships among manufacturers </li></ul><ul><li>Exchange parts, especially materials </li></ul>

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