B2B E-Commerce: Selling and Buying in Private E-Markets
Learning Objectives
Upon completion of this chapter, you will
be able to:
1.
Describe the B2B field.
2.
Describe the major types of B2B models.
3.
Discuss the characteristics of the sell-side
marketplace, including auctions.
4.
Describe the sell-side intermediary models.
5.
Describe the characteristics of the buy-side
marketplace and e-procurement.
6.
Explain how reverse auctions work in B2B.
7.
Describe B2B aggregation and group purchasing
models.
8.
Describe other procurement methods.
9.
Explain how B2B administrative tasks can be
automated.
10. Describe
infrastructure and standards requirements for B2B. 11. Describe Web EDI, XML, and Web services.
Section 5.1 Review Questions
1. Define
B2B.
Business–to-business e-commerce refers to
transactions between businesses conducted electronically over the Internet,
extranets, intranets or private networks.
2. Discuss the following: spot buying
versus strategic sourcing, direct materials versus indirect materials, and
vertical markets versus horizontal markets.
Spot buying is the purchase of goods and
services as they are needed, usually at prevailing market prices. In contrast, strategic sourcing is the
purchase of goods and services involving long-term contracts that are usually
based on private negotiations. Direct
materials are the materials that are used in the creation of a product whereas
indirect materials are used to support that production. Vertical markets are concentrated in a
specific industry whereas horizontal markets concentrate on a product or
service that is used across several industries.
3. What
are company-centric marketplaces? Are they public or private?
Company-centric marketplaces focus on a
single company’s purchasing needs or selling needs and are generally private
entities owned by that company.
4. Define
B2B exchanges.
A B2B exchange is a many-to-many
e-marketplace, usually owned and run by a third party, in which many buyers and
sellers meet electronically to trade with each other.
5. Relate
the supply chain to B2B transactions.
The use of business-to-business
electronic commerce is generally a part of existing supply chains that are used
to make them more efficient.
6. List
the B2B online services.
The virtual service industries in B2B
include: travel services, real estate, electronic payments, online stock
trading, online financing and other online services.
7. Summarize
the benefits of B2B.
These benefits are listed on page 224.
Section 5.2 Review Questions
1. List
the types of sell-side B2B transaction models.
The major types of B2B sell-side
transactions include selling from electronic catalogs, selling through forward
auctions and one-to-one selling.
2. Distinguish between use and nonuse of
intermediaries in B2B sell-side transactions.
In some cases, firms may use an
intermediary to provide some or all of their sell-side transaction
systems. When intermediaries are used,
it is generally in the format of an electronic marketplace. The larger the firm, the more likely it is to
use a private, and not a third-party intermediary system.
3. What
are buy-side and sell-side transactions? How do they differ?
Buy-side transactions involve one buyer
and many sellers whereas sell-side transactions involve one seller and many
buyers.
4. Describe
customer service in B2B systems.
Customer service in B2B systems is very
similar to the customer service provided in B2C systems. It is important to provide the customer with
a way to interact with the merchant and have technical questions solved. In this market, personalization/customization
of the service becomes even more important because of the large sales volume
involved.
5. Describe
direct B2B sales from catalogs.
B2B can use catalogs in much the same way
that B2C merchants can. Merchants are
able to list a variety of their products online for customers to select and
purchase from. Personalization/customization
becomes more important in B2B sell-side transactions when firms are working
with larger customers.
6. Discuss
the benefits and limitations of direct B2B sales from catalogs.
There are several benefits to direct sales including:
lower order processing costs, a faster ordering cycle, fewer errors, lower
search costs for buyers/sellers, lower logistics costs and customization
options. The limitations to direct sales
include attracting buyers, channel conflicts, the method of electronic
indication and the required scale to operate efficiently.
7. Describe Cisco’s B2B
activities and list their benefits to Cisco and to its customers.
Cisco’s System provides a central portal for service,
ordering and order information. The
benefits of the system include decreased costs, increased quality, better and
faster technical support and reduced distribution costs.
Section
5.3 Review Questions
1.
What are the advantages of
using intermediaries in B2B sales?
It allows manufacturers to decrease the need for
customer marketing and distribution.
Customers can access several product lines in one area.
2.
What special services are
provided to buyers by Boeing Parts? (Online File W5.2.)
A wide variety of the activities in
Boeing's supply chain are improved by its online initiatives. Examples of these improvements include the
ability to handle transactions more efficiently, the ability for customers to
order parts conveniently online, reduced personnel costs and goodwill towards
Boeing, which may result in future purchases.
3.
Compare Grainger’s Case
with Marshall
(Online File W5.3). What are the common
elements? What are the differences?
Both systems allow customers to
serve themselves with information, orders/customization and communication. The focus and complexity of the systems
differ.
4.
Compare an e-distributor
in B2B to Amazon.com. What are the
similarities? What are the differences?
The services are very similar in
that they aggregate and distribute goods from a variety of manufacturers. The differences lie in the type, complexity
and cost of the goods distributed.
Section
5.4 Review Questions
1. List the
benefits of using B2B auctions for selling.
The four major benefits of using B2B auctions for selling
include: revenue generation, cost savings, increased page views and member
acquisition/retention.
2. List the
benefits of using auction intermediaries.
The benefits of using an intermediary include the lack of
new required resources, fast time to market, customization of interface, low
technical and ongoing requirements and outsourcing of billing/collections.
Section 5.5 Review Questions
1. Define
procurement and list the major procurement methods.
Procurement is the acquisition of goods
and services for a business. The major
methods are listed on page 231.
2. Describe
the inefficiencies of traditional procurement.
The traditional procurement system is
inefficient because it involves large amounts of time spent analyzing small
repetitive purchases that could be made more efficiently through a more
developed system. Additionally, the lack
of this developed system creates maverick buying.
3. Define
e-procurement and its goals.
E-procurement is the electronic
acquisition of goods and services for a business. E-procurement attempts to
achieve the following goals: increased productivity, lower purchase prices,
improved information flow, minimized maverick purchasing, improved payment
processes, faster purchasing, reduced processing costs, and finding new
suppliers/vendors.
4. How do direct materials from MROs
differ? Why are MROs good candidates for e-procurement?
Direct materials are those materials that
are used in the production process and are part of the finished item. Indirect materials (MROs) are materials used
to support the manufacturing process but are not used as a part of the finished
good. Office supplies are an excellent
example of MROs. MROs are an excellent
candidate for e-procurement because they are generally small dollar items that
are purchased repetitively.
5. Describe
the implementation of e-procurement.
To implement e-procurement a firm must
first decide how it fits in its overall strategy. After this is determined, the firm must
evaluate its existing processes and changes that this system will make in both
processes and personnel. Next, the firm
must begin to set up the software that will allow them to continue. This process will involve establishing what
goods should be purchased and from whom.
Additionally, back-end systems must be configured.
6. Describe e-sourcing and its benefits.
E-sourcing
includes the processes and tools that enable the sourcing process
electronically. This decreases process
time and leads to decreased costs for customers and suppliers.
Section
5.6 Review Questions
1. Describe
the manual tendering system.
Under a manual tendering system, buyers create
descriptions of the products that they would like to purchase and then send out
RFQs to potential bidders. Potential
bidders review the information, ask questions and submit bids. Buyers then evaluate the bids and select a
bidder.
2. How do online reverse auctions work?
Companies place their RFQ information online and allow
bidders to access that information and place bids.
3. List the
benefits of Web-based reverse auctions.
There are several benefits to Web-based
reverse auctions including: decreased processing time, easier bidding, easier
analysis of bids, larger numbers of bids and reduced bidding preparation costs.
4. Describe the business drivers of GE’s
TPN now (GXS) and its evolution over time. (See Online File W5.6.)
The existing RFQ process was not efficient,
and that lack of efficiency was multiplied by the huge size of the lighting
division. Over time the system has grown
to provide more features to users.
5. What was a primary challenge to GE in
implementing its e-procurement system? (See Online File W5.6.)
GE faced the challenge of successfully integrating with
its suppliers.
Section 5.7 Review Questions
1. Describe
an internal procurement marketplace and list its benefits.
An internal marketplace is an aggregation
of several different suppliers’ catalogs in one location. The major benefits of this type of aggregated
catalog system involve the ease and speed of the resulting ordering process.
2. Describe
the benefits of desktop purchasing.
The benefits include the ability to
purchase quickly and at a lower acquisition cost.
3. Discuss
the relationship of desktop purchasing with internal procurement marketplaces
and group purchasing.
The system allows for easier internal
purchasing with fewer management hurdles.
It also allows the effective consolidation of MROs for group purchasing.
4. Explain the logic of group purchasing
and how it is organized.
Group purchasing is based on the idea
that individual buyers will be able to negotiate a better price on goods and
services if they act as a buying group.
Group purchasing is organized through internal or external aggregation
depending on the size of the firm placing the order. External aggregation is usually organized through
a third-party system.
5. Describe how e-distributors operate and
discuss their appeal to buyers.
Firms allow business customers to
purchase in small quantities, instead of buying in bulk.
6. How
does B2B bartering work?
B2B bartering usually involves an intermediary operating a
bargaining exchange where firms and the goods they would like to trade can be
matched.
Section 5.8 Review Questions
1.
How is
contract management being automated?
Software applications allow for consistent and trackable
terms and conditions.
2.
Describe
spend management programs.
Software applications are used to see spending amounts and
patterns in real time across many layers of an organization.
3.
How is
negotiation supported electronically?
Requirements and specifications are provided
electronically. Systems allow for
quicker exchanges and changes in terms, with the ability to track repercussions
of those changes.
4.
Describe
e-procurement management tools.
These tools allow firms to more closely integrate with key
suppliers to ensure a consistent and predictable flow of materials as needed.
Section 5.9 Review Questions
1. List the
major infrastructures required for B2B EC.
The major infrastructures required for the systems
include: servers for databases and applications, software for sell-side
activities, software for auctions, software for e-procurement, software for
CRM, security systems, storefront software, exchange software, and networks and
protocols.
2. Describe
the difficulties of integration with business partners.
Integrating with business partners is generally difficult
because of the variety of systems used.
Because each partner may use a different system, integration is required
for each separate system.
3. Describe
the roles of extranets and EDI in interorganizational networks.
EDI provides a standardized system of communication for
passing information between business partners.
And extranets provide a secure medium for communication while leveraging
existing Internet infrastructures and protocols.
4. Distinguish
traditional EDI from Web-based EDI.
Web-based EDI uses internet protocols (instead of
proprietary networks) to distribute information.
5. Describe
the purpose of XML.
XML is meant to be the replacement for
EDI by providing a consistent, flexible language for data transmission that
relies on existing Internet standards.
6. Describe
Web services and their role in integration.
Web services are an architecture that
allows for the combination of several applications in one location. It can ease integration by providing the
building blocks for distributed systems.
7. What
role do software agents play in B2B?
Software agents
can play a variety of roles in B2B including automating the purchasing and
quoting process.
1. Why is
this a B2B sell-side case?
The website acts a catalyst for end purchasers to enter
the retail channel. It is a benefit to
the retail channel.
2. What are
the benefits of this type of Web site for the company?
The site allows users to become familiar with the product,
and sells product accessories.
3. Relate
the case to social networks.
The site help to provide a large variety of information
all on all aspects of cycling, drawing repeat users who will eventually become
customers.
4. How does
CartGenie support the site?
This is the EC cart software that supports product
information and sales.
EC Application Case 5.2: Whirlpool B2B Trading Portal
1. How do Whirlpool’s customers benefit from the portal?
It allows customers to easily
select items from a catalog, enter orders and track them online.
2. What are the benefits of the trading portal to Whirlpool?
It decreases the overall cost of
processing orders.
3. Relate
the B2B sell-side to a B2C storefront.
These are very similar applications in what they do; the
difference is who is targeted at the site (known end users versus anonymous
customers).
EC Application Case 5.3: W.W. Grainger and Goodrich
Corporation
1. Enter
grainger.com and review all services offered to buyers. Prepare a list of these
services.
The site offers a
full catalog, shopping and pricing assistants.
2. Explain how Goodrich’s buyers save time and money.
They can shop at
one location for a variety of products.
The shopping online is quick.
3. What other benefits does Goodrich enjoy by using grainger.com?
There is a decrease in paperwork due to the
use of online purchasing and purchasing cards.
4. How
is desktop purchasing implemented at Goodrich Corporation?
The system has decreased the time spent by purchasing
agents and has allowed purchasing to be completed by employees through
purchasing cards.
EC Application Case 5.4: How the State of Pennsylvania
Sells Surplus Equipment
1. Why is heavy equipment amenable to such
auctions?
It is high value, with potential buyers that are
physically distant or unable to attend a specific time auction.
2. Why did the state generate 20 percent
more in revenues with the online auction?
By allowing a larger potential market, the price of the
items increased.
3. Why do you need an intermediary to
conduct such an auction?
The intermediary may help increase the potential market
pool as well as supplying the needed technical infrastructure.
4. Comment on the number of bidders and
bids as compared with off-line auctions.
The numbers increase as more buyers have access.
EC Application Case 5.5: Regent Inns: Successful
Implementation of E-Procurement
1. What are the drivers of e-procurement?
Cost and time savings drive these solutions.
2. How is e-procurement related to other
information systems?
Business needs were put first, with the system tied to
other existing systems.
3. List the major benefits of the new
three-procurement system to the company.
Some benefits include:
·
Faster turn-around
·
Reduced stock
·
Cost savings
·
Reduced complexity
·
Fewer errors
EC Application Case 5.6: Reverse Auctions Become a
Diplomatic Tool
1. List the drivers of the application.
The system attempts to reduce costs, time spent and vendor
alienation.
2. What is the role of the intermediary?
(See fedbid.com.)
The intermediary provides the IT systems and conducts the
auction.
3. What are the success factors in this
case?
Success factors include cost savings, a reduction in time
used in the process and an understanding of the fairness of the system.
EC Application Case 5.7: Reverse E-Procurement at Defra
1. List three goals of the e-procurement
systems. Explain.
Goals include decreasing maverick spending, capturing
expenses, increased automation, reduced invoice errors, reduction in vendors, cost
savings and goal alignment.
2. Draw a flow chart of the new
procurement process and explain it.
The process involves the use of software that consolidates
purchase options, e-contracting, e-tendering/e-billing and auctions.
3. List three major benefits of the
system.
Benefits include cost savings, reduction in
paper/processes, reduced maverick buying, decreased invoicing and streamlined
purchases.
4. List the critical success factors for
this system.
Some possible critical success factors include ease of
use, seller buy-in, purchaser acceptance and the quality of the implementation.
Insights and Additions 5.3: Ozro Negotiate
1. Identify the direct support that Ozro
Negotiate provides to negotiators.
The system supports RFQs, offer management, negotiation,
agreements, security, updates, audits and archiving.
2. Visit eyedeas.net and
Find the Ozro demo. View the demo. Which features are the most important? Why?
Student responses will vary. Different firms many have greater needs (and
perceived value) in different areas.
3. Which companies, in
your opinion, would benefit the most from this product? Why?
Student responses will vary.
Answers to Discussions Questions
1. Explain how a
catalog-based sell-side e-marketplace works and discuss its benefits.
Sell-side catalog-based marketplaces are very similar to
business-to-consumer catalog-based marketplaces. They provide a service that allows buyers to
easily select and purchase products from a catalog of potential goods provided
by the seller. Sellers are able to
easily display a large variety of items to their potential buyers. Buyers are able to make their purchases
easily through this online system.
2. Discuss the advantages
of selling through online auctions over selling from catalogs. What are the
disadvantages?
Selling through auctions has several advantages including
low overhead and operational costs if a third-party auction is used, the
ability to sell one-of-a-kind items easily, the ability to sell at the
prevailing market price, and the ability to change products and pricing
quickly. Disadvantages might include limited selling times and reduced control
over price.
3. Discuss the role of
intermediaries in B2B. Distinguish between buy-side and sell-side
intermediaries.
Intermediaries in business-to-business electronic commerce
generally perform some sort of value-added operation. These intermediaries provide value through
their ability to move goods through the value chain in a manner that assists
both those upstream and downstream.
4. Discuss and
compare all of the mechanisms that group-purchasing aggregators can use.
Student answers will
vary based on the aggregators compared.
5. Should
desktop purchasing be implemented only through an internal marketplace?
Student answers will vary and will be based on the interplay
between organizational control and ease or purchasing.
6. How do
companies eliminate the potential limitations and risks associated with
Web-based EDI? (See Online File W5.9.)
Student reports will
vary.
7. How can
software agents work for multiple sellers and buyers?
These agents can work to select appropriate buyers and sellers
in electronic marketplaces and match appropriate partners. In this way, the agent is acting as a filter
of information for both groups of users.
8. Discuss the
role of XML in B2B. Why is it so important?
XML is an open data interchange language that will allow firms
to eliminate the need for EDI. It is
possible that XML could provide a single language for data transmission. Additionally, XML is designed to work with
Internet protocols, thus providing businesses with a huge potential network
(the Internet).
9. Discuss the
importance of Web services to B2B integration.
Student reports will
vary. Web services provide an architecture
that is flexible and assumes integration.
This provides a starting place for the integration of several systems.
10. Relate
e-procurement to sourcing.
Both applications ease
the purchasing process through standardization and other tools. E-sourcing deals with raw materials whereas
e-procurement focuses on finished goods.
11. Discuss the
role of XBRL in financial management.
XBRL provides a common
framework for capturing financial data and making it accessible across systems
for review and reporting purposes.
Internet Exercises
(Note: URLs may change over time;
please check the Internet Exercises on the Turban Web site for possible
updates: www.prenhall.com/turban.)
1. Enter gxs.com
and review GSX Express’s bidding process. Describe the preparations your
company would make in order to bid on a job.
Also, check how some of the customers are using the company (e.g., Rohn
& Haas 2005 case study).
Answers will vary.
2. Enter inovis.com
and review the capabilities of BizManager and BizConnect. Write a report.
Answers will vary.
3. Visit allsystem.com
to learn about All-System Aerospace International, Inc., a company that handles
aircraft parts from several vendors. From an aircraft repair technician’s point
of view, evaluate whether this site can compete with Boeing’s PART system (see
Online File W5.2).
Student answers will vary. The site provides a variety of parts
for different aircraft. The site is not
complex and provides a parts listing for specific types of aircraft. While it is a clearinghouse, Boeing's PART
system appears to be superior due to the greater range of parts and easier
navigation.
4. Examine the
sites, ariba.com, trilogy.com, and icc.net. Match a B2B
business model with each site.
ariba.com - solution provider for
sell-side, buy-side, exchanges and collaborative commerce
trilogy.com - business-to-business
e-commerce software provider
icc.net - solution provider for supply
chain integration software
5. Visit supplyworks.com
and procure.com. Examine how each company streamlines the purchase process. How
do these companies differ from ariba.com?
These firms provide software solutions that automate Supplier
Resource Management. The solutions allow
tighter integration and lower transaction costs between buyers and
sellers. The concentration is on
solutions for the supply-side. While ariba.com
provides similar solutions, they also focus on buy-side and complete supply
chain integration.
6. Enter soho.org
and locate EC applications for SOHOs. Also, check the business services for
small businesses provided by officedepot.com.
Student responses will vary based on the applications chosen.
7. Visit ebay.com
and identify all activities related to its small business auctions. What
services are provided by eBay?
It appears that eBay no longer offers auctions specific to
small businesses.
8. Review the
Cisco Connection Online (CCO) case.
a. What is the CCO business model?
This system allows for the customization of products in a business-to-business
sales environment.
b. What are the success factors of CCO?
The success factors would
include the level of the system’s sophistication and allowing customization;
the ability of the system to provide customer service based on need; and the
ability of the system to link customers with relevant product information.
c. What kinds of inquiries are supported when customers check their
order status?
The system can track shipping
date, shipping method, and current location.
Additionally, the system provides a variety of FAQs with answers to
commonly asked questions.
d. What are the major benefits of CCO to Cisco and its customers?
Cisco benefits by reducing
the cost of order taking, improving service and support, reducing technical
support staff cost, reducing software distribution costs, and providing faster
customer service. Customers receive
quicker service and price quotes in addition to better support and
collaboration.
9. Enter
ondemandsourcing.com and view the demo.
Prepare a list of benefits to small and mid-tier organizations.
Student responses will vary. Different firms many have greater needs (and
perceived value) in different areas.
10. Enter
bitpipe.com and find recent B2B vendor reports related to e-procurement. Identify topics not covered in this chapter.
Student responses will vary.
11. Visit
iasta.com and examine the tools they sell for conducting various types of
e-procurement. List and analyze each
tool.
Student responses will vary.
12. Enter bambooweb.com and find information
about EDI. Prepare a report.
Student responses will vary.
13. Enter
terrecom.com. Summarize the B2B technologies it provides. Relate the sell side, buy side and auctions.
Student responses will vary.
14. Enter
the-buying-group.com, omca.com/group_buying.htm, and other group purchasing
sites. Report on B2B group buying
activities.
Student responses will vary.
15. Go to procurenet.biz. Prepare a list of resources related to
e-procurement.
Student responses will vary.
Team Assignments
and Role Playing
1. Predictions about
the future magnitude of B2B and statistics on its actual volume in various
countries keep changing. In this activity, each team will locate current B2B
predictions and statistics for different world regions (e.g. Asia, Europe,
North America). Using at least five sources, each team will find the predicted
B2B volume (in dollars) for the next 5 years in their assigned region. Possible
sources of data are listed in Exhibit 3.1 (page 94).
Student
answers will vary based on which statistics are used and when statistics are
procured.
2. Your goal in this
assignment is to investigate the major B2B vendors. Each team should
investigate a major vendor (e.g., Ariba, Microsoft, HP, Commerce One, Oracle,
or IBM) or an application type (buy-side, sell-side, or auction). Find the
major products and services offered, and examine customer success stories.
Write a report of your findings. Convince the class that your vendor is the
best.
Student answers will vary based on business selected.
3. Each
team should explore a different e-procurement method and prepare a paper for
class presentation. The paper should
include the following about the e-procurement method:
a. The
mechanisms and technologies used
b. The
benefits to buyers, suppliers, and others (if appropriate)
c. The
limitations
d. The
situations for which each method is recommended
Student answers will vary based on method selected.
4. Each
team will research vendors that produce software for reverse auctions and vendors
that conduct reverse auctions for businesses.
Some companies to consider are hedgehog.com, purchasing.com, oltiby.com,
sorcity.com, epiqtech.com and bizauctions.com.
Each team will compile information about the reverse auction process,
security and so on. Prepare and make a
presentation of your findings.
Student answers will vary based on the vendors selected.
End-of-Chapter Real-World Case: Eastman Chemical Makes Procurement a Strategic Advantage
1. Enter perfect.com
and find information about the capabilities of PerfectPicture. Write a report.
Answers
will vary.
2. Why did Eastman Chemical start first
with e-procurement rather than with the sell-side? You may want to visit eastman.com
to learn more about the company.
The
company was focused on reducing the cost of MRO purchases to make operations
more efficient.
3. In July 2000, Eastman Chemical
introduced an EC project that enables buyers to participate in Eastman’s
private online price negotiations using LiveExchange from Moai (moai.com).
Explain how the software works and why it is referred to as “dynamic commerce.”
The
software allows different groups to participate in product negotiation. It is “dynamic commerce” because the addition
of new purchasers can dramatically affect pricing and availability for
products.
4. Which of the problems cited in this
case can be solved by other EC applications? Relate your answer to Ariba
products (ariba.com).
Student answers will vary.
Chapter Test
- B2C and B2B orders have similar order-fulfillment processes and pricing models.
A.
True
B.
False
- B2B EC can increase the efficiency and effectiveness of supply chains or dramatically change the supply chain by eliminating one or more intermediaries.
A.
True
B.
False
- Strategic sourcing refers to purchases involving long-term contracts that usually are based on private negotiations between sellers and buyers.
A.
True
B.
False
- Each of the following is a major type of B2B structural model except:
A.
collaborative
union.
B.
exchanges.
C.
buy-side.
D.
sell-side.
- The purchase of goods and services as they are needed, usually at prevailing market prices is referred to as:
A.
direct materials.
B.
strategic sourcing.
C.
spot
buying.
D.
consolidation.
- Benefits of e-procurement over traditional procurement methods include each of the following except:
A.
increasing the productivity of purchasing agents.
B.
streamlining invoice reconciliation and dispute
resolution.
C.
increasing
the skill requirements and training needs of purchasing agents.
D.
lowering purchase prices through product
standardization, reverse auctions, volume discounts, and consolidation of
purchases.
- All are benefits of B2B except:
A.
B2B creates new sales or purchase opportunities.
B.
B2B
increases channel conflict.
C.
B2B lowers search costs and time for buyers to find
products and vendors.
D.
B2B eliminates paper and reduces administrative costs.
- An example of a successful aggregation of suppliers' catalogs is that of ________, which aggregates more than 10,000 items from the catalogs of approved suppliers into an internal electronic catalog.
A.
MasterCard
International
B.
Google
C.
Amazon.com
D.
Priceline.com
- The two types of materials and supplies traded in B2B are:
A.
direct
and indirect.
B.
digital and physical.
C.
commodities and nonproduction.
D.
horizontal and vertical.
- Nonproduction materials, such as office supplies, that support production are called:
A.
direct materials.
B.
virtual materials.
C.
indirect
materials.
D.
operational materials.
- With a bartering exchange, a company submits its surplus to the exchange and receives:
A.
points
of credit, which the company can then use to buy items that it needs.
B.
cash minus a small commission for services.
C.
interest payments until it buys something from the
exchange.
D.
an equivalent amount of products or services.
- Companies use ________ to sell their unneeded assets for quick disposal or to dispose of excess, obsolete, and returned products.
A.
liquidation
B.
private auctions
C.
forward
auctions
D.
reverse auctions
- Companies will usually separate B2C orders from B2B orders because B2C and B2B orders have different:
A.
buying and delivery processes.
B.
marketing processes.
C.
order-fulfillment
processes and pricing models.
D.
accounting and financial processes.
- Markets that deal with one industry or industry segment are:
A.
horizontal marketplaces.
B.
production chain marketplaces.
C.
supply chain markets.
D.
vertical
marketplaces.
- Purchases of goods and services based on long-term contracts is referred to as:
A.
spot buying.
B.
consolidation.
C.
strategic
sourcing.
D.
direct materials acquisition.
- B2B only includes electronic transactions between businesses conducted over the public Internet.
A.
True
B.
False
- In company-centric marketplaces, the individual company has very little control over who participates in selling or buying transactions.
A.
True
B.
False
