Chapter 12:  B2B E-commerce: Supply Chain Management and Collaborative Commerce

3.         Assume you are a procurement officer for an office furniture manufacturer of steel office equipment. You have a single factory located in the Midwest with 2,000 employees. You sell about 40% of your office furniture to retail-oriented catalog outlets such as Quill in response to specific customer orders, and the remainder of your output is sold to resellers under long-term contracts. You have a choice of purchasing raw steel inputs- mostly cold-rolled sheet steel-from an exchange and/or form an industry consortium. Which alternative would you choose and why? Prepare a presentation for management supporting your position.

            I think purchasing from both exchange and from consortium have the same amount of benefits.  I would made my decision based off of who has the cheapest price on the product.  The raw inputs would be used for the making of the furniture.  The down fall to buying the cheapest product is that the product itself might not be the greatest.  Purchasing from both places and testing the product to see who’s better would be the best option.

 

4.         You are involved in logistics management for your company, a national retailer of office furniture. In the last year the company has experienced a number of disruptions in its supply chain as vendors failed to deliver products on time, and the business has lost customers as a result. Your firm only has a limited IT department, and you would like to propose a cloud-based solution. Go to the web site of GT Nexus. Explore why GT Nexus tab, and the Solutions By Industry/Retail tab. Read several case studies on the site. Write a report to senior management why you believe that a cloud-based B2B solution is best for your firm.

·                     I believe that a cloud-based B2B solution is best because it will enable our firm to connect, collaborate, build, and manage our partner communities. These solutions would provide us with the flexibility to quickly adapt as business needs change and evolve.  Other very successful companies use the cloud-based B2B solutions such as IBM.  They would enhance visibility and control over business processes shared with outside companies and also increase the reliability and performance of our firms B2B operations.