Business-to-business and B2b E-marketplace

Closing Case Study One When you’re Big, You Can Be Your own B2B E-Marketplace. Question 1 :- Volkwagen operates its own proprietary B2B e-marketplace in which its suppliers participate. What are the disadvantages to Volkswagen of not using a generic B2B e-marketplace with even more suppliers? What are the advantages to Volkswagen of developing and using its own proprietary B2B e-marketplace? Answer :- The disadvantages to Volkswagen of not using a generic B2B e-marketplace with even more suppliers is difficult for organization to search an e-marketplace for suitable suppliers and then enter into negotiations outside the e-marketplace.

This happen for organizations needing to purchase millions of dollar in inventory, parts, or raw materials, and it occurs for organizations wanting to establish a long-term relationship with just one supplier. Relationships among businesses in B2B are very important. These relationships, characterized by trust and continuity, extend to the IT realm. In the B2B business model, you must provide a level of integration of your IT systems with those of your business partners.

The advantages to Volkswagen of developing and using its own proprietary B2B e-marketplace because they spend the money with suppliers, so that its can open and run their own B2B e-marketplace. Volkswagen handles 90% of Volkswagen global purchases. Almost all request for quotes, contract negotiations, catalogue updating and buying, purchase-order management, vehicle program managements, and payment are handled electronically and online through VWgroupsupply. com.

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Volkswagen Ag offers eight brands of automobiles Volkswagen (passenger), Volkswagen Commercials Vehicles, Audi, Bentley, Bugatti, Lamborghini, Seat, and Skoda. Volkswagen spent almost 60billion euro, or approximately $77billion, on components, automotive parts, and MRO materials for its manufacturing operations. Question 2 :- When the Volkswagen needs a new part design, it uses VWsupplygroup. com to get its suppliers involved in the design process early. This creates a tremendous amount of interorganizational collaboration.

What are the advantages to the suppliers and to Volkswagen in doing so? Answer :- The advantages to the suppliers and to Volkswagen in doing so to creates tremendous amount of interorganizataional collaborations is as a supplier to other businesses, you also need to understand whether you are selling in a horizontal or vertical e-marketplace. The electronic marketplace is an interactive business providing a central market space where multiple buyers and suppliers can engage in e-commerce and other e-commerce business activities.

E-marketplace features a variety of implementations including value-added networks providers, horizontal e-marketplace, and vertical e-marketplaces. Horizontal e-marketplace is an electronic marketplace that connects buyers and sellers across many industries, primarily MRO materials commerce. MRO materials include a broad of range of both products and services including office suppliers, travel, shipping and some financial services. Question 4 :- To make effective purchasing decisions, Volkswagen’s purchasing agents need business intelligence.

What kind of business intelligence does iPad provide to purchasing agents for carrying out their tasks? What additional kinds of business intelligence not discussed in the case could Volkswagen’s purchasing agents take advantage of to make more effective decisions? Answer :- An Volkswagen has, in essence, created a system that brings the necessary information to the purchasing agents. This new system within VWgroupsupply. com is called iPad, or internal Purchasing Agent Desk. Its use for purchase order for a vehicles front module had to use numerous separate systems to complete the process.

Retrieve information from suppliers system and its database, query information in Volkswagen’s internal parts information system, obtain information from a request-for-quotes database, enter information into a contact-negotiation transcript system, and interact with several other systems and databases. The purchasing agent had to log into and use seven separate systems. Analysis revealed that Volkswagen purchasing agents were spending 70% of their time finding, retrieving, analyzing, validating, and moving information. Question 5 :- IPAD manages the workflow for purchasing agents.

Describes how iPad manages this process including information provided, steps to be executed, and the presentation of information. Answer :- iPAD manages the workflow for purchasing agents. Using a form af an integrated collaboration environment, or ICE, purchasing agents now participate in a simple three step process. The first step is iPad captures and sends a business event to the purchasing agent, such as the nedd to order vehicles front modules. Second, iPad attaches to that communications other necessary information such as information about potential suppliers, their costs, and others forms of analysis and descriptive information.

The final steps is iPad send the corresponding business processes and work flows to be completed electronically. It works much like digital dashboard. When purchasing agent log onto the iPad portal in the morning, they receive a customized Web page with announcement, business alerts, analysis, and digital workflows to be completed. The purchasing agents can set out immediately to complete the task of the day, without having to spend 705 of their time finding. iPad also customizes the Web page according to the purchasing agent’s native language.

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