Pavel Mikhasenok


CH 12 Projects: Question 3


Exchange would connect my firm with thousands of suppliers in real-time environment. The benefit of using exchange could be lower prices driven by suppliers to attract more customers. Suppliers would be in direct competition with each other, just like gas stations that are placed across each other. This option would be good to fulfill specific customer orders by making a fast manufacturing process.


Industry consortium would enable my firm to make long-term contracts which would cut down my costs and will allow my firm to push my inventory to the resellers. The benefit of being in industry consortium is that it will allow me to negotiate prices, delivery schedule, and constant raw material flow. This option will enable business automation and will make my company more effective and efficient.


I would use both of these alternatives because it will allow me to fulfill the agreements with retailers and specific customer orders, while keeping operating and manufacturing costs low.