Pavel Mikhasenok

ITS 380

CH12 B2B E-Commerce: Supply Chain Management and Collaborative Commerce

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

The main concern would be not having an enterprise system. ERP system is key to having access to all Elemica’s features. But small company can still join a web portal with online software where firms can participate in the community with suppliers and customers.

 

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 end-user firms in the automobile, airline, and manufacturing industries. How is this possible?

Elemica helps firms be more efficient, even though they compete against each other. The platform permits companies to be in contact with each other to make transactions and handle logistics. Elemica helps companies to automate all of their business processes. Users of the planform have access to the software that gives them solutions in four primary areas: Logistics Management, Customer Management, Supplier Management, and Sourcing Management. By using solutions, the companies are able to cut their costs and be more effective and efficient. Elemica’s QuickLink ERP enables companies to link their IT systems so that information is moved to each company’s database while being confidential and secure.

 

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 12.10?

The partnership with Bravo allowed Elemica to accelerate in the market by giving the customers what they want. The investment allowed Elemica to develop more applications to reduce customers’ costs and make they more effective and efficient. It allowed their client to automate their business processes and speeded up their growth and profitability. Instead of being an e-distributer, Elemica became an e-procurement net marketplace that connected hundreds of suppliers with hundreds of firms creating a long-lasting relationship.

 

Projects p. 838

Question 2: Examine the website of one of thee-distributors listed in Figure 12.10 and compare and contrast it to one of the websites listed fore-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.

Question 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 from an industry consortium. Which

alternative would you choose and why? Prepare a presentation for management supporting your position.