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Agenda Agenda

What is B 2 B EC? What is B 2 B EC?

Market Figures Market Figures

Key Entities of B 2 B EC Key Entities of B 2 B EC

Types of B 2 B E-Commerce Types of B 2 B E-Commerce

Consumers B 2 C E-Commerce Business Customers B 2 B E-Commerce Consumers B 2 C E-Commerce Business Customers B 2 B E-Commerce

2. Buyer-Oriented Market Place Business Suppliers Buyer’s Electronic Mall 2. Buyer-Oriented Market Place Business Suppliers Buyer’s Electronic Mall

Factories at GE Lighting division used to send hundreds of Requisitions For Quotations (RFQs) Factories at GE Lighting division used to send hundreds of Requisitions For Quotations (RFQs) to the corporate sourcing department each day for lowvalue machine parts. For each requisition, the accompanying blueprints had to be requested from storage, retrieved from the vault, transported to the processing site, photocopied, folded, attached to paper requisition forms with quote sheets, stuffed into envelopes and mailed out. This process took at least 7 days and was so complex and timeconsuming that the sourcing department normally sent out bid packages only to two or three suppliers at a time.

GE’s TPN Post GE’s TPN Post

GE’s TPN Post GE’s TPN Post

Business Suppliers Business Customers Intermediary’s Electronic Mall Business Suppliers Business Customers Intermediary’s Electronic Mall

Boeing’s PART Boeing’s PART

Boeing’s PART Boeing’s PART

Question: Are all B 2 B through extranets? Can Internet be used for this Question: Are all B 2 B through extranets? Can Internet be used for this type? How?

Traditional Procurement Process Traditional Procurement Process

Buyer Supplier RFQ Response to RFQ Purchase Order P. O. Acknowledgement Purchase Order Change Buyer Supplier RFQ Response to RFQ Purchase Order P. O. Acknowledgement Purchase Order Change

Traditional EDI Traditional EDI

5. Aggregation Models 5. Aggregation Models

Buyers’ Aggregation Model Buyers’ Aggregation Model

Suppliers’ Aggregation Model Suppliers’ Aggregation Model

Fed. Ex Fed. Ex

Supply Chain Supply Chain

A Simple Supply Chain A Simple Supply Chain

The Pull vs. Push Model The Pull vs. Push Model

Changes in the Supply Chain Changes in the Supply Chain

Changes in the Supply Chain Changes in the Supply Chain