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Int. M. Production Economics 92 (2004) 113–124
Supply chain dexterity in purchaser centric BUSINESS-ON-BUSINESS electronic market segments Charles Times. Wanga, *, Michel Benarochb
Institution of Administration, State University of New You are able to at Zoysia grass, Buffalo, NEW YORK 14260, UNITED STATES b University of Supervision, Syracuse College or university, Syracuse, NY 13210, UNITED STATES Received 1 September 2002; accepted 1 September the year 2003
Abstract While over the past some years more than 1000 BUSINESS-ON-BUSINESS electronic markets that cater to a wide spectrum of industries have been proven, many of them have previously disappeared. This reality may be explained by many factors, a pair of which we think are important: the transaction charges that owners of these marketplaces charge participants, and the supply chain coordination mechanisms that these markets perform (or really do not) facilitate. In this paper, we take the viewpoint of supply string coordination to investigate the decision of suppliers and buyers to accomplish or not do business in electronic marketplaces while advertising perishable items with randomly demand. ur 2003 Elsevier B. Versus. All privileges reserved. Keywords: Electronic marketplaces; Newsvendor unit; Supply chain contracts; Earnings policy
1 ) Introduction Recently we have found the fast development of Business-to-Business (B2B) e-commerce. Jupiter Marketing and sales communications estimates that by 2006, the anticipated online BUSINESS-ON-BUSINESS transactions of products in the US would amount to $6. 3 trillion out of the total of $15. you trillion. Internet-based electronic market segments (emarkets) play a particularly important role in BUSINESS-ON-BUSINESS e-commerce; they can be expected to generate an online deal volume of over $6 trillion by 2004 (Bermudex et al., 2000). Currently you will find over one thousand established B2B e-markets wedding caterers to a large spectrum of industries including aerospace, *Corresponding author. Tel.: +1-716-645-3412; fernkopie: +1716-645-6117. Email-based address: [email protected] edu (C. X. Wang).
agriculture, attire, automotive parts, energy and chemicals, large technology, meals and beverages, logistics, ofﬁce supply, companies, utility, soft goods, and raw materials. Oddly enough, however , lots of the e-markets that were established over the past few years include disappeared. This kind of reality might be explained by many factors. For instance , Porter (2001) points out that Internet technology has some unwanted side effects on the market structure: Net technology will negatively reinforce buyer bargaining power, reduce barriers to entry achievable competitors, makes new replace products or services, accentuate the competition among opponents, and promotes destructive cost competition. Sensible and Morrison (2000) also identify three ﬂaws in the B2B e-market: competitive putting in a bid among sellers allows customers to get the lowest possible prices; B2B e-market offers
0925-5273/$ - see front matter l 2003 Elsevier B. Sixth is v. All legal rights reserved. doi: 10. 1016/j. ijpe. 2003. 09. 016
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little beneﬁt to sellers; as well as the business model of all B2B e-markets are, best case scenario, half-baked. Through this paper, we all attempt to identify two other important factors that might help to explain the actual of current B2B e-markets: the kind of transaction fees that e-market owners charge individuals, and the kind of supply cycle coordination systems that BUSINESS-ON-BUSINESS e-markets do (or really do not) assist in. In classic markets, ventures between suppliers and buyers begin with a buyer looking for goods or possibly a supplier in search of potential buyers. Equally supplier and buyer will incur some kind of transaction costs in traditional markets. 1 part of the deal costs is incurred prior to the actual purchase. It includes bills for looking, advertising, playing trade shows, fulfilling brokers, dealers or sales team, etc . Another part of the transaction costs can be incurred after a contract has been signed. It includes the expenses related to ordering, invoicing, making travel arrangements,...
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