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

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

Grantham University

Abstract

An e-marketplace is an Internet-based environment where businesses can buy and sell from one another more efficiently. E-marketplaces can save your business time and money, but they are not just about getting the lowest price on what you need to buy. There are advantages as well as cautions to consider before you join an e-marketplace.

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

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?

The disadvantages to not using a generic B2B are no new trading partners; difficulty finding suitable suppliers; no open infrastructure standards, making it more difficult to plug into other than proprietary technology and significant Technology costs.

The advantages to developing a proprietary B2B are reduced administrative tasks; acceleration of processes; improved planning accuracy and improved transparency in collaboration with suppliers.

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?

Specific benefits include: suggestions for better design; reduce hidden or surprise costs; less confusion on deadlines; better communication; establishing valuable contacts across the supply chain; gaining insights into current organizational practices; and identifying opportunities for joint projects among supply chain members.

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...