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Management Information Systems

W2 Assignment: When You’re Big, You Can Be Your Own B2B E-Marketplace

Grantham University BA 515

Michael Greenberg

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 opted to stay out and form its own electronic supplier network, presumably on the basis that it can do a better job and gain a real competitive advantage. Volkswagen using their own B2B marketplace does not allow for the competition to provide lower cost products as it would if it were more open to other service providers and parts distributors.

Along with this mindset, vendor trustworthiness is sometimes compromised by

E-commerce through its anonymity, impersonality, and automation. Volkswagen can and could have benefited from more external approach, in that it enhances relationships between businesses due to improved accessibility. This disadvantage also depends on the businesses that are interacting and their own personalities, or need for in person communication. For the auto industry and Volkswagen I believe that they build their own to provide a greater level of security and overall control of the company (Hagg, 2012 Pg 152).

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?

Volkswagen orients its requirements to first-tier suppliers with whom they have direct contractual relationships. An efficient sustainability management in supplier relations of a

Carmaker such as Volkswagen demands that the requirements of the OEM...