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Other E-Procurement Methods BUYING AT E-AUCTIONS group purchasing The aggregation of orders from several buyers into volume purchases so that better prices can be negotiated. Internal Aggregation External Aggregation * * * Chapter 5 B2B E-Commerce * Learning Objectives Describe the B2B field. Describe the major types of B2B models. Discuss the characteristics of the sell-side marketplace, including auctions. Describe the sell-side models. Describe the characteristics of the buy-side marketplace and e-procurement. Explain how reverse auctions work in B2B. * Learning Objectives Describe B2B aggregation and group purchasing models. Describe other procurement methods. Define exchanges and describe their major types. Describe B2B portals. Describe third-party exchanges. Describe partner relationship management (PRM). * Concepts, Characteristics, and Models of B2B EC BASIC B2B CONCEPTS business-to-business e-commerce (B2B EC) Transactions between businesses conducted electronically over the Internet, extranets, intranets, or private networks; also known as eB2B (electronic B2B) or just B2B. * Concepts, Characteristics, and Models of B2B EC * Concepts, Characteristics, and Models of B2B EC THE BASIC TYPES OF B2B TRANSACTIONS AND ACTIVITIES Sell-side Buy-side Exchanges Supply chain improvements and collaborative commerce * Concepts, Characteristics, and Models of B2B EC * Concepts, Characteristics, and Models of B2B EC THE BASIC TYPES OF B2B E-MARKETPLACES AND SERVICES One-to-Many and Many-to-One: Private E-Marketplaces company-centric EC 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). private e-marketplaces Markets in which the individual sell-side or buy-side company has complete control over participation in the selling or buying transaction. * Concepts, Characteristics, and Models of B2B EC Many-to-Many: Exchanges exchanges (trading communities or trading exchanges) Many-to-
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