B2B Electronic Exchanges An Overview Classification Of EXchanges vertical exchange An exchange whose members are in one industry or industry segment horizontal exchange An exchange that handles materials used by companies in different industries Dynamic Pricing dynamic pricing A rapid movement of prices over time, and possibly across customers, as a result of supply and demand Electronic Commerc Prentice Hall 2006 6
Electronic Commerce Prentice Hall © 2006 6 B2B Electronic Exchanges: An Overview • Classification Of Exchanges vertical exchange An exchange whose members are in one industry or industry segment horizontal exchange An exchange that handles materials used by companies in different industries • Dynamic Pricing dynamic pricing A rapid movement of prices over time, and possibly across customers, as a result of supply and demand
Exhibit 6.2 Classification of B2B Exchanges Direct Indirect(MRO) (2) Vertical Horizontal Distributors E-Distributors Systematicplastics.com mro. com Sourcing epapertrade. com grainger. com Methods:aggregation,iFindmro.com fixed/negotiated prices Methods: Aggregation fixed/negotiated prices (3) (4) Vertical Horizontal Exchanges EXchanges Spot isteelasia. com employease. com Sourcing chemconnect. com aribasn Methods: Matching, Methods: Matching dynamic pricing dynamic pricing Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 7 Exhibit 6.2 Classification of B2B Exchanges
B2B Electronic Exchanges An Overview Functions of Exchanges 1. Matching buyers and sellers 2. Facilitating transactions 3. Maintaining exchange policies and infrastructure Ownership of EXchanges An industry giant A neutral entrepreneur The consortium(or co-op) Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 8 B2B Electronic Exchanges: An Overview • Functions of Exchanges 1. Matching buyers and sellers 2. Facilitating transactions 3. Maintaining exchange policies and infrastructure • Ownership of Exchanges – An industry giant – A neutral entrepreneur – The consortium (or co-op)
B2B Electronic Exchanges An Overview Revenue models Transaction fees Fee for service Membership fees Advertising fees Other revenue sources Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 9 B2B Electronic Exchanges: An Overview • Revenue Models – Transaction fees – Fee for service – Membership fees – Advertising fees – Other revenue sources
B2B Electronic Exchanges An Overview Governance and organization Membership Site Access and Security Services Provided by exchanges Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 10 B2B Electronic Exchanges: An Overview • Governance and Organization – Membership – Site Access and Security – Services Provided by Exchanges