Chapter 4: B2B E-Commerce

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business-to-business e-commerce (B2B EC)
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Transactions between businesses conducted electronically over the Internet, extranets, intranets, or private networks; also known as eB2B (electronic B2B) or just B2B.
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company-centric EC
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E-commerce that focuses on a single company’s buying needs (many-to-one, or buy-side) or selling needs (one-to-many, or sell side).
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exchanges (trading communities, trading exchanges)
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Many-to-many e-marketplaces, usually owned and run by a third or a consortium, in which many buyers and many sellers meet electronically to trade with each other.
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public e-marketplaces
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Third-party exchanges open to all interested parties (sellers and buyers).
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online intermediary
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An online third party that brokers a transaction online between a buyer and a seller; may be virtual or click-and-mortar.
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spot buying
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The purchase of goods and services as they are needed, usually at prevailing market prices.
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strategic (systematic) sourcing
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Purchases involving long-term contracts that usually are based on private negotiations between sellers and buyers.
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direct materials
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Materials used in the production of a product (e.g., steel in a car or paper in a book).
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indirect materials
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Materials used to support production (e.g., office supplies or light bulbs).
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MRO (maintenance, repair, and operation)
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Indirect materials used in activities that support production.
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vertical marketplaces
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Markets that deal with one industry or industry segment (e.g., steel, chemicals).
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horizontal marketplaces
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Markets that concentrate on a service, material, or a product that is used in all types of industries (e.g., office supplies, PCs).
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partner relationship management (PRM)
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Business strategy that focuses on providing comprehensive quality service to business partners.
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supplier relationship management (SRM)
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A comprehensive approach to managing an enterprise’s interactions with the organizations that supply the goods and services it uses.
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sell-side e-marketplace
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A Web-based marketplace in which one company sells to many business buyers from e-catalogs or auctions, frequently over an extranet.
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buy-side e-marketplace
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A corporate-based acquisition site that uses reserve auctions, negotiations, group purchasing, or any other e-procurement method.
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procurement management
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The planning, organizing, and coordinating of all activities relating to purchasing goods and services needed to accomplish the organization’s mission.
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maverick buying
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Unplanned purchases of items needed quickly, often at non-prenegotiated higher prices.
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e-procurement (electronic procurement)
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The electronic acquisition of goods and services for organizations via the Internet, EDI, etc.
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request for quote (RFQ)
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The “invitation” to participate in a tendering (bidding) system.
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internal procurement marketplace
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The aggregated catalogs of all approved suppliers combined into a single internal electronic catalog.
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desktop purchasing
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Direct purchasing from internal marketplaces without the approval of supervisors and without the intervention of a procurement department.
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group purchasing
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The aggregation of orders from several buyers into volume purchases so that better prices can be negotiated.
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bartering exchange
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An intermediary that links parties in a barter; a company submits its surplus to the exchange and receives points of credit, which can be used to buy the items that the company needs from other exchange participants.
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consortium trading exchange (CTE)
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An exchange formed and operated by a group of major companies in an industry to provide industry-wide transaction services.
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dynamic pricing
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A rapid movement or prices over time and possibility across customers, as a result of supply and demand matching.
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B2B portals
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Information portals for businesses.
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vortals
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B2B portals that focus on single industry or industry segment; “vertical portals”.
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corporate (enterprise) portal
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A major gateway through which employees, business partners, and the public can enter a corporate website.
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mobile portals
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Portals accessible via mobile devices, especially cell phones and PDAs.
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information portals
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Portals that store data and enable users to navigate and query these data.
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collaborative portals
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Portals that allow collaboration.
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B2B marketing
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Marketing by manufacturers and wholesales along the sell-side of the supply chain.

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