Kim Mattson

ITS 380

CH 12


Case Study

1.       If you were a small chemical company, what concerns would you have about joining Elemica?

As a small firm, I would be concerned over the ability to respond to orders of large quantities requested by partners. Also, the potential learning curve to adapt to the technology used with Elemica. ERPís (Enterprise Resource Planning), which allow business partners to be connected with one another in real time, can streamline order confirmations, invoices, and purchases for added efficiency. Even though small and medium firms do not need to have an ERP system to connect to Elemica, using the online portal would require a certain level technological base.

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.