Unformatted text preview: their presence in the marketplace through media advertising,
industry marketing programs, e-mail discount offers, and other high-visibility activities.
The original concept of these exchanges was for independent operators to facilitate
interactions between buyers and sellers in fragmented markets. But new developments
occur quickly in electronic commerce. Most recently, in many industries the major buying
companies in that industry have set up and are operating their own exchanges –– in the
automotive industry, high-tech manufacturing, retailing, agri-business, and many others.
While these “buyer-centric” exchanges can no doubt be effective, there is a growing
concern among suppliers that their purpose is not to broaden the pool of suppliers but to
enable the biggest corporate buyers to exert their combined clout over their smaller
suppliers and extract lower and lower prices. Using e-procurement tools to achieve volume
leverage is discussed in more detail in the next section.
With extensive competition both within and between exchanges, suppliers...
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- Spring '08
- e-procurement, e-procurement solutions, Scott A. Elliff