Louis Gouge


Chapter 12

Case Study

1. My concerns would be having to work with only one supplier for my companies. That one supplier could play with the pricing for my company and I would be curious if the savings would be worth the costs of joining Elemica. I would also be concerned about how the other business within this company would try to sway my opinions referencing my company's business decisions. I would not want to be told how to do business with other companies.

2. Since itís a cloud based supply chain it can sell to companies one to one instead of having another company sell its products at different prices to other customers. In the long run, if Elemica plays equally with all its customers it can help their other businesses compete at a fair transparent business model.

3. The businesses that are participating in this type of model can take advantage of the benefits this type of business offers and hopefully use the savings to pass them on to the customers. Since Elemica is cloud based it can utilize that to expedite the ordering, shipping and logistics of the B2B element of it. It can also allow more flexibility in how Elemica conducts business. I would have to say that makes most of their customers happy about the turnaround times.


1. Before the internet and online ordering, businesses had to order items using paper catalogs, or salespersons, or brick and mortar stores. When they had to return an item, requests had to be made and return labels had to be mailed. Everything took a long time and this time lag had to be considered so a lot of planning had to be utilized just for this purpose.

B2B e-commerce has replaced all of that by enabling it to be used by electronic devices. Everything can be done online by using the internet and all the procedures can be performed instantly.

5. There is Contract purchasing, and Spot purchasing.

Contract purchasing is when a business enters a contract with a supplier to purchase their products under the conditions that are mutually agreed upon by them for a specified period. Spot purchasing is usually done when the business needs a product right now or within a very short notice. These purchases can be done from any supplier that may have the item in stock and ready to ship or pick up within the specified time frame.

10. It can make suppliers show their prices to their competitors and when that happens the competitors will adjust prices to come in below the others. When that happens, the larger suppliers force the smaller ones to lower prices and that often affects the smaller ones by a larger margin. It can force the smaller businesses to go out of business. We used to have two small mom and pop stores within five miles of our house. When Walmart came to our small town it forced our store to close and it never reopened.

15. Sharing sensitive data with partners and trusting them with it all along the supply chain and fearing what may happen if that information is revealed to competitors. Fear that information being distributed to large customers may end up in the hands of its largest competitors.

20. A cloud based B2B platform utilizes the electronic devices available to run your business more efficiently than ever before. It allows the business to remove the costs of suppling their own hardware systems onto the cloud based system where it provides all the computing, and telecommunication capabilities of the provider.

Some advantages are: reduces paper waste, lowers electrical use, establishes connections for the businesses partners, provides software on-demand to connect the company's network to the partners, performs data coordination and cleaning, and manages the data quality.


4. Since our firm has only a very limited IT department, the Logistics department is making a recommendation to use GT Nexus as a cloud based solution for our many disruptions in our supply chain. Our firm can move some of our expenses over from spending it on hardware and software over to GT Nexus that can provide computing, networking, and communication capabilities. Here are some advantages to using GT Nexus: Cloud based supply chains are simple and easy to use. They can reduce costs by expanding our customer base and it can assist in pricing which we can adjust in real time. Cloud based systems have built in redundancy which means there is back up to back up in case a failure happens. Cloud based systems are hosted by another provider which means we can get rid of all our old servers and save electricity and we can promote that to our customers as going green. Cloud based systems are easily upgraded which means we will pay for only what we need/use we will not have to buy more than we need and with to use it like our in-house system.