CH- 12 B2B E- Commerce: Supply Chain Management and Collaborative Commerce
Case Study Questions:
1. If you were a small chemical company, what concerns would you have about joining Elemica?
Joining Elemica as a small chemical company would concern me for a few reasons. The first reason I would be concerned would be due to a chance for a large order being placed. If a large order were to be placed, I would be worried about our resource management and also how it would be handled. The second reason I would be worried about joining Elemica is because I am curious how Elemica can support large chemical companies as well as representing small chemical companies and create a fair format for all parties involved. Overall, the model Elemica has a few problems that would cause concern for a small company when joining.
2. Elemica provides a community for participants where they can transact, coordinate, and cooperate to produce products for less. Yet these firms also compete with one another when they sell chemicals to the end-user firms in the automobile, airline, and manufacturing industries. How is this possible?
This is a possible situations because with Elemica providing a fair and equal platform for all companies, it allows businesses still to sell to whoever buys. But the goal of Elemica is to lessen the competition while increasing efficiency’s in in all companies to drive profitability’s for all companies. So overall, the competitive level may drop but the profitability should sky rocket within the company. Elemica also keeps prices covered so companies cannot undercut on another. It creates an environment that reduces overhead cost, while increases efficiency.
3. How does the purchase of Elemica by Thoma Bravo, a private equity firm, change how Elemica fits into B2B framework illustrated on figure 12.10?
Elemica is dedicated to reducing overhead costs for firms for the long run while building strong partnerships and relationships. Private industrial networks on the other hand, owned by a key industry member or members, will be trying to coordinate the transactions of the entire industry.
1. Examine the website of one of the e-distributer listed in 12.10, and compare and contrast it to one of the websites listed for e-procurement Net marketplace. If you were a medium sized firm, how would you decided where to buy your indirect inputs- from e-distributers or e-procurement Net marketplace?
E-distributer and E-procurement both use high quality and computer integrated B2B techniques. Both are also types of net market places. The differences are because E-procurement concentrate and focus on the value chain management, where E-distributers focus on increased network distribution system t boost market segment.
If I were a medium sized firm I would buy indirect inputs, which are maintenance and repair of goods, would be purchased by the department when the demand is noticed. Inputs and delivery should be JTI (just in time delivery). Here the buyer is guaranteed the correct delivery and part.
2. Assume you are a procurement officer for your company located in the Midwest with 2000 employees. You sell about 40% of your office furniture to retail and the remainder to resellers under long term contract. You have the choice of purchasing raw steel inputs mostly cold rolled sheet steel from an exchange. Which alternative would you choose and why?
An e-procurement officer’s goal is to find the best product at the best prices. The benefits of exchanges are reduced search costs for parts, lower prices due to not having to buy at market prices, while also creating better cash flow for the company. Suppliers do not usually engage in exchanges due to tough profit margin and the fierce competition. Exchanges usually do not offer value added services for the customer. Hence the reason for exchanges to not be as likely.