In: Computer Science
4. What is a B2B exchange, and what benefits do they offer? Given those benefits, why are they currently only a small part of the overall B2B picture?
SOULTION:
#B2B EXCHANGE:
* B2B exchange offer digital transaction services that heighten ebussiness performance making it safer and more sources
*th B2B market is composed of websites were buyers and selleers come together vertically and horizontally to communicate, bid, advertise, transact, and procure
suppliers- manufacturers-wholesalers
* selling to intermediaries rather than directly to the end customer
* fewer custmoers
* smaller product ranges.
B2B benefits:
* cuts transaction costs
* large opportunity for transformation because of scale and scope.
* buyers are able to reduce purchasing costs due to automation of paper work.
* online exchanges also intoduce buyers to suppliers that they wouldnot have traditionally met from traditional chaneels.
BENFITS TO BUYERS:
* IF A custmores wants rock bottom prices he is likely to prefer a B2B market place, if he wants a close relationship with a suppliers because his orders are large and critical to his core operations he may perfer bilateral e trade.
BENEFITS FO SELLER:
* gives sellers an oppourtunity to retain some control over their sales channels whille minimizing service costs
* they can take over part of the value added procesing e.g customizing products.
* most of the first generation of B2B exchange were open, public marketplaces whose business model was based on a small percentage fee on all transction conducted>
* A user must indentify himself to the application by suppling a correct name/password combination. In addition, The applicaation must be built in such a way that only a limited number of all indentified users can oc8s access sensitive functionality such as approving large purchases or initating money transfer. samll start-ups can design their own security processes. larger set-ups,must,however,deploy stronger and more sophisticated processes.