1. If you were a small chemical company, what concerns would you have about joining Elemica?
2. Elemica provides a community for participants where they can transact, coordinate, and cooperate to produce products for less. Yet these firms also complete with one another when they sell chemicals to end-user firms in the automobile, airline, and manufacturing industries. How is this possible?
The chemical industry has a long history of firms buying and selling from each other. It is inevitable at some point for a firm to have a surplus of inventory they would like to sell, or need specific chemicals to complete an order. The Elemica provides a neutral trading platform with the shared benefits from lower-cost-to-serve, greater efficiencies, and overall more efficient operations to better serve customers. The anonymous bids and quotes give members a fair price and available quantities, keeping competition on the end user of the spectrum.
3. How does the purchase of Elemica by Thoma Bravo, a private equity firm, change how Elemica fits into the B2B framework illustrated in Figure 12.9?
Elemica will be expanding to offer its services to other industries, making them a multi-industry consortium.
2. †Examine the website of one of the e-distributors listed in Figure 12.9, and compare and contrast it to line of the websites listed for e-procurement Net marketplaces. If you were a business
†††† manager of a medium-sized firm, how would you decide where to purchase your indirect inputs- from an e-distributor or an e-procurement Net marketplace? Write a short report detailing
†††† your analysis.
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 website of GT Nexus. Explore the 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.