B2B E-Commerce

B2B E-Commerce - 1 B2B Models for DoD Acquisition Magdi N...

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Unformatted text preview: 1 B2B Models for DoD Acquisition Magdi N Kamel 2 Objective Examine models for classifying and differentiating the business functionality provided by B2B E-commerce and investigate their impact on government and DoD acquisition 3 Agenda What is B2B Electronic Commerce? Benefits of B2B E-Commerce Characteristics of B2B E-Commerce Basic B2B E-Commerce Models Buy-side Sell-side Exchanges Collaborative Commerce 4 What is B2B E-Commerce? Business-to-business e-commerce (B2B EC)transactions between businesses conducted electronically over the Internet, extranets, intranets, or private networks In 2003 it represented about 11% of total B2B trade estimated at $13.5 trillion Predicted to grow steadily to reach 40 50% by 2010 5 Benefits of B2B E-Commerce Significant cuts in acquisition costs Expedites cycle time Reduces errors and/or improves quality of services Provides seamless integration with suppliers Reduces inventory levels and costs Provides immediate response to changes in customer purchasing patterns 6 Benefits of B2B E-Commerce (contd) Increases production flexibility, permitting just-in-time delivery Facilitates mass customization Increases opportunities for collaboration between buyers and sellers 7 Characteristics of B2B E-Commerce Parties to the transaction Directly between buyer and seller Online intermediaryan online third-party that brokers a transaction between a buyer and a seller; can be virtual or click-and-mortar Types of transactions Spot purchasesthe purchase of goods and services as they are needed, usually at prevailing market prices Strategic sourcingpurchases involving long-term contracts that are usually based on private negotiations between sellers and buyers 8 Characteristics of B2B E-Commerce (contd) Types of products and services Directproducts and services used directly in the production of a product (e.g., steel in a car or paper in a book) Indirectproducts and services used to support production (e.g., office supplies or light bulbs), also known as MROs (maintenance, repairs, and operations) Direction of transactions Vertical marketplacesmarkets that deal with one industry or industry segment (e.g., steel, chemicals)....
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B2B E-Commerce - 1 B2B Models for DoD Acquisition Magdi N...

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