Chapter 12

1.      Explain the differences among total inter-firm trade, B2B commerce, and B2B
e-commerce
     Total inter-firm trade is the total flow of value among firms.  B2B commerce is all types of computer-enabled inter-firm trade.  B2B e-commerce is that portion of B2B commerce that is enabled by the Internet.

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2.      What are the key attributes of electronic storefronts? What early technology are they descended from?
      The key attributes of electronic storefronts are just online catalogs of products made available to the public marketplace by a single supplier ex Amazon.  This is descended from automated order entry systems.

3.      List at least five potential benefits of B2B e-commerce.
      Five potential benefits of B2B e-commerce are lower administrative costs, lower search costs for buyers, increase production flexibility by ensuring delivery of parts "just in time", increase opportunities for collaborating with suppliers and distributors, and create a greater price transparency.

4.      Define the term supply chain and explain what SCM systems attempt to do. What does supply chain simplification entail?Explain the difference between a horizontal market and a vertical market.
      The term supply chain are firms that purchase goods, their suppliers, and their suppliers' suppliers.  Includes not only the firms themselves, but also the relationships among them, and the processes that connect them.  Supply chain simplification entails involving the decision of who to buy from and what to pay, purchase orders are then issued.  A horizontal market is a market in which meets a given need of a wide variety of industries, rather than a specific one.  A vertical market is a group of similar businesses and customers that engage in trade based on specific and specialized needs.

5.      How do the value chain management services provided by e-procurement companies benefit buyers? What services do they provide to suppliers?
      The value chain management services benefit buyers because the suppl chain is linked through a series of transactions and firms purchase goods from a set of suppliers, and they in turn purchase their inputs from a set of suppliers.

6.      What are the three dimensions that characterize an e-procurement market based on its business functionality? Name two other market characteristics of an e-procurement Net marketplace.
      The three dimensions that characterize an e-procurement market based on its business functionality are the decision of who to buy from and what to pay.  Purchase orders are then issued.  Two other market characteristics of an e-procurement Net marketplace are the Internet being an important contribution simply as a powerful communications medium.

7.      Identify and briefly explain the anti-competitive possibilities inherent in Net marketplaces.

8.      List three of the objectives of a private industrial network.
      The anti-competitive possibilities inherent in Net marketplaces are they establish the prices of the goods they offer in four primary ways...They earn revenue by transaction fees, subscription fees, service fees, software licensing fees, advertising and marketing, and sales of data and information.  They are biased against suppliers because they can force suppliers to reveal their prices and terms to other suppliers in the marketplace.  Three of the objectives of a private industrial network are to share product design and development, marketing, and inventory.

9.      What is CPFR, and what benefits could it achieve for the members of a private industrial network?
       CPFR is an industry model intended to facilitate suppliers and buyer interaction by synchronizing supply and demand.  Private industrial networks are owned by the buyers and are buyer-side solutions with buyer biases...this could help improve the cost position and flexibility of large industrial firms.

10.  What are the barriers to the complete implementation of private industrial networks?
      The barriers to the complete implementation of private industrial networks are because not every business is online right now.  Since this business focuses on permit buyer firms and their principal suppliers to share product design and development, marketing, inventory, and production scheduling they have to be able to do this for many businesses.