Question

Electronic Purchasing for Global Sourcing

Supply chain management has become an increasingly popular and strategically important topic in international business in recent years. An important recent development in supply chain management is the emergence of electronic purchasing for global sourcing. This exercise examines potential benefits and costs associated with electronic purchasing.

Read the case below and answer the questions that follow.

The solar energy industry generated worldwide revenues that were estimated at nearly $50 billion in 2011. These revenues have been projected to almost double by 2014.The industry includes suppliers of a broad array of components such as photovoltaic panels, inverters, batteries, charge controllers, wiring, and support structures. Customers range from individual homeowners installing rooftop systems to large commercial generating programs that cover hundreds of acres of land. Both suppliers and customers are widely dispersed around the world.

1.

Some of the leading companies that participated in the solar energy industry have discussed the possibility of establishing an ambitious B2B electronic purchasing project, tentatively labeled "SolExchange." What might be the potential benefits from establishing such an exchange and what are some of the potential services that SolExchange might provide for its members?

2.

What are some of the potential problems that a B2B project such as SolExchange might encounter?

Answer 1