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B2B e-commerce (Private Industrial Networks (Objectives (Global scale…

- - - - increased globalization and consolidation
    - - low administrative costs
      - low search costs
      - reduced inventory costs
      - low transaction cost
      - increased production flexibility
      - improved product quality
      - decreased product cycle time
      - increased opportunities for collaboration
      - high price transparency
      - increased visibility
  - - - significant utilization of EDI
      - large investment in IT
      - markets concentrated on purchasing or selling
  - - - All types of computer-enabled inter-firm trade
    - - The portion of B2B commerce enabled by the Internet
    - - Organizations, peoples, business processes, technology, information required to produce products efficiently
- - - - B2B contract selling
      - spot purchase market for MRO
    - - File storage
      - Connectivity
      - Software
      - Data cleansing and quality
      - Computing
- - - - Qualify
        
        Negotiate
        
        Purchase Order
        
        Invoicing
        
        Shipping
        
        Remittance Payment
  - - - Types of goods
        
        Direct
        
        Indirect
      - Methods used to purchase
        
        Contract purchasing
        
        Spot purchasing
  - - - Complex series of transactions between firm and thousands of suppliers, supplying thousands of goods
      - Challenges
        
        Supply chain visibility
        
        Demand forecasting
        
        Production Scheduling
        
        Order management
        
        Logistics management
    - - Legacy computer systems
        
        older mainframes and minicomputers used to manage key business processes within firm
      - Enterprise Systems
        
        Corporate-wide
        
        Supports and controls all aspects of production
        
        procurement
        
        finance
        
        human resource
- - - - independently owned intermediaries
      - electronic catalog representing products
    - - independently owned online marketplace
      - connect with supplier and buyers
    - - industry-owned vertical market
      - purchase of direct input
    - - connect hundred of supplies of indirect goods
      - independently owned intermediaries