Case Study

When you’re Big, You Can Be Your Own B2B E-Marketplace

1. Volkswagen operates its own proprietary B2B e-marketplaces in which its suppliers participate. What are the disadvantages to Volkswagen of not using a generic B2B e-marketplace with even more suppliers? What are the advantages to Volkswagen of developing and using its own proprietary B2B e-marketplace?

Volkswagen disadvantages of not using a generic B2B e-marketplace with even more suppliers are that they spend much money for their e-marketplace. Another disadvantage is difficult for organization to search an e-marketplace for suitable suppliers and then enter into negotiations outside the e-marketplace. Another is making it more difficult to plug into other than proprietary technology and significant Technology costs. The advantages to Volkswagen of developing and using its own proprietary B2B e-marketplace is that the suppliers had their interactions and it is more safe and secured. Purchasing agents no longer have to spend valuable time in searching for information and pricing because Volkswagen/Supplier placed product and pricing catalogs on the system. Another advantages is, it reduced administrative tasks and improved planning accuracy and improved transparency in collaboration with suppliers.

2. . When Volkswagen needs a new part design, it uses VWsupplygroup.com to get its suppliers involved in the design process early. This creates a tremendous amount of inter-organizational collaboration. What are the advantages to the suppliers and to Volkswagen in doing so?

When Volkswagen a new part design,

3. How is Volkswagen’s VWgroupsupply.com B2B e-marketplace an example of a vertical e-marketplace implementation? How is it an example of a horizontal e-marketplace implementation? Why is it necessary that Volkswagen combine both of these e-marketplaces into one e-marketplace? What would be the drawbacks to creating two different e-marketplaces – one for suppliers of direct materials...