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B2B Integration : A Practical Guide to Collaborative E-commerce

B2B Integration : A Practical Guide to Collaborative E-commerce

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E-Marketplaces and <strong>Collaborative</strong> Networks 451<br />

E-marketplaces should evolve from a transaction and supply chain<br />

aggregation based model <strong>to</strong> new models based on transactions, content,<br />

integrated e-procurement and collaborative supply chain. They should<br />

provide affordable, secure and single point of supply chain interaction<br />

and support integration with existing systems, such as ERP and order<br />

processing.<br />

Neutrality<br />

It is critical that e-marketplaces prevent any side playing a dominant<br />

role by dictating such matters as the technology and operational standard,<br />

since it should be neutral <strong>to</strong> all participants. Of course, if a company<br />

decides <strong>to</strong> participate in a buyer centric or a supplier centric exchange,<br />

the operating and technical standards would be dictated by them.<br />

Setup, participation and transaction fees<br />

Setup costs for participating in any e-marketplace should not be <strong>to</strong>o<br />

steep. These costs may also be dependent on the volume of content that<br />

needs <strong>to</strong> be put online in the exchange. Several e-marketplaces do not<br />

charge any one-time participation or annual fees from buyers. They do,<br />

however, charge substantial fees from suppliers. So, as a supplier, a<br />

company should negotiate fees with companies running e-marketplaces.<br />

It may even create alliances with other suppliers and bargain for a<br />

group/volume discount.<br />

Some exchanges do not charge any participation fees even <strong>to</strong> suppliers.<br />

Suppliers pay fees (volume-based, percentage of <strong>to</strong>tal transaction or flat<br />

annual fees) only when they receive a confirmed order from buyers.<br />

Flexible, secured, scalable technology<br />

The technology supported by e-marketplaces should be flexible, so that<br />

it is interoperable with the internal systems of companies, and architecture<br />

should be flexible enough so that adding any off-the-shelf product (like<br />

adapters for internal systems) requires much less coding. Additionally,

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