The e-Marketplace

Agenda
e-Marketplace : Definitions & Scope Different types of e-Marketplaces C-Commerce e-Marketplace : Future Directions Case I : High Tech Industry B2B e-Marketplace Case II : e-Sourcing

Mobile Solutions for SCM

e-Marketplace : Definitions & Scope

Definition
A network service shared by multiple individuals and enterprises Information about products and services are shared electronically Products and services may be purchased without a aid of voice or paper-based exchanges Translations of actual and commercial marketplaces to the virtual environment

Examples: Internet, Membership based online services, Bulletin boards, Interconnected private networks and Value added third party networks

e-Marketplace : Definitions & Scope

B2B e-Marketplace Definition*
An enterprise that brings buyers and sellers in an industry, geographic region or affinity group together for the purpose of commerce Provides content, value-added services and often not always commerce transaction capabilities A market intermediary

Name calling: Exchanges, eHubs, iHubs, e-Markets, Trading Networks, e-MarketPlaces, NetMarkets, B2B Markets.

e-Marketplace : Definitions & Scope

Many-to-Many Internet based Intermediary Various Transaction Functionalities

Seller A

Buyer A

Catalog, Auction, Reverse Auction, Exchanges Seller B Focus on individual industry and business process

e-Marketplace

Buyer B

Multiple types:
Public Markets: Independent vs Consortium-led Private Markets: Buy-side vs Sell-side Vertical vs Horizontal

Seller C

Buyer C

Different Types of e-Marketplaces

Electronics Commerce Types
Catalog
One Buyer & One Seller at a Time The Largest Segment Ex : Dell Computer

Auction
On-line Auction Event Many Buyers & Single Seller Ex : Auction.com

Reverse Auction (Bid)

On-line Bidding Event Many Sellers & Single Buyer Ex : FreeMarkets

Different Types of e-Marketplaces

Independent Market Maker Led
3rd Party becomes a market maker Ex : GXS

Consortium Led
A group of leaders in industry build a marketplace Ex : E2Open, Converge, covisint, EXOSTAR, GHX

Solution Provide Led

B2B Solution providers builds independent marketplaces Ex : mySAP Exchanges, Commerce One.net

Private Portal Model

A big company and many suppliers or buyers builds private transaction environments Ex : Ciscos ehub, Dells valuechain.dell.com

Different Types of e-Marketplaces

Vertical Marketplaces
Vertical e-Marketplaces
e.g. e-steel, Covisint, e2opn Paper Plastic Steel e.g. MRO.com, LGMRO.com Horizontal e-Marketplaces

Logistics management

Requires industry knowledge Accelerate relationship in specific industry Start with e-procurement and extend to other services

Energy management

Horizontal Marketplaces
No focus on specific industry Process oriented approach Focus on common process across different industry

Procurement

Different Types of e-Marketplaces

Private Marketplaces Public Marketplace
Use it, without having to build it. Drives industry standards for communication, processes and data. Access to industry content, knowledge and best practices. Easier for global reach. More incentive conflicts.

More expensive & upkeep Unilateral & therefore faster implementation May have to connect to multiple exchanges Can take advantage of buyers power Easier to integrate with other systems & workflow Less resource sharing

C-Commerce
Collaborative Commerce

e-Marketplace : Future Directions

1st Generation e-Marketplace
E-Commerce Based
Limited to B2B intermediary functionalities Spot Buying Service based on Catalog Dynamic Trading (Auction, Reverse Auction and etc.) Mainly MRO and some Indirect Materials Some commodity type direct materials Stand-alone and separate channels Limited integration with transaction systems inside enterprise Individual / Independent Marketplace

2nd Generation e-Marketplace

C-Commerce Based
Support business process in enterprises entire value chain Interactive Collaboration among business partners E-Hub with End-to-End SCM process integration Mainly Direct Materials Both Commodity and Customized Materials Integrated structure with ERP and other enterprises transaction systems

Functionality

Target Material

Back-End Integration Other Marketplace Integration

Integrated structure considering M2M(Marketplace-to-Marketplace)

Case I : Product Collaboration

Tools
Virtual collaboration workspace
EMS OEM

Document check-in/check-out
Version control Multi-format file support; 2D view and markup Planned 3D Viewer

Design Data Sample Requests 2D/3D CAD Drawings

Parts information
Distr Product Collaboration BOMs, AVL data ECO/PNCs Supplier OEM Supplier Search tools Planned large file transferring Planned light PMS functions

Multiple forms of trusted communication

Web meetings Threaded discussions Workflow

Case I : Supply Chain Collaboration

Service Type
Forecast Collaboration Order Collaboration Inventory Collaboration Production Planning Collaboration Settlement Collaboration Logistics Collaboration Buyer

Collaboration Contents
Demand Forecast Supply Outlook

1st Service Area

Supplier

Order Create,Change,Cancel

Buyer

PO Review, Change, Reject, ASN*

Supplier

Inventory Level, Consuming Plan

Buyer

Replenishment Plan Mid-Long Term Production Plan

Supplier

Buyer

Capacity Plan Settlement

Supplier

Buyer

Invoice

Supplier

Order Status

Buyer

Tracking & Trace

Supplier

Case I : Commerce Collaboration

Sellers
OEMs
SELL SIDE SOLUTIONS
Direct Selling
Contract Manufacturers

Buyers
OEMs
Contract Manufacturers

Channel Management
E-commerce Integration

Distributors Distributors

Excess Selling

BUY SIDE SOLUTIONS Trading Companies

Strategic Sourcing
Spot Purchase

Value Added Resellers

Brokers
POS Customers

Suppliers

Status of e-Markets
Independent public markets are struggling. Consortium-based public markets still at somewhat immature stage, and all have vision of adding intelligence and pursuing supply chain services and design collaboration. Private exchanges are flourishing, and intelligent exchanges are emerging. A period of explosive growth followed by extensive consolidation and exits. Value proposition continues to be refined.

Case II : Market Characteristics

Fragmented supply market Inefficient Variance among suppliers Supplier knowledge is not common

Commodity

Specialized

FreeMarkets
Efficient Transparent

Relationship Quality

Case II : Market Characteristics

Strategic Goals:
Select the mix of products, services, suppliers that offers the lowest total costs Based on multiple parameters: quality, delivery, price Price is only one part of a sourcing decision

Problems of Traditional Sourcing:

Insufficient product category expertise Lack of proven sourcing methodologies Constraints of traditional sourcing technologies

Mobile Solutions for SCM

M-Commerce : Definition*
Any transaction using a data-enabled digital mobile phone or PDA

A wireless data connection to the internet or a vendors private network

Usually, financial transactions are excluded

Mobile vs. Wireless

Mobile but offline
Portability, Some PDAs Ex : e-book

Mobile but online

Wireless
Always on connection to the Internet Ex : Inventory Check

Mobile Solutions for SCM

M-Commerce : Drivers M-Commerce : Inhibitors
Consumer lack of awareness or apathy about m-commerce User interface limitations and application design Secure transaction requirements
CF. PC-based transaction

Convenient and easy-to-useapplications that are useful to mobile user immediately Proliferation of mobile devices and wireless communications

Personalization
Location-based technologies will help drive the m-commerce market from 2003 User context will be a key requirement for successful mcommerce applications Targeted advertising and marketing schemes

Convenient payment methods

Mobile Solutions for SCM

Mobile Applications in Supply Chain
E-Procurement
Ex : Order and Transaction, Approval Workflow, Receiving and Payment Workflow

Supply Chain Execution

Ex : Mobility in Warehousing and Inventory Management, Work Order Management, Facility Utilization Management

Supply Chain Visibility

Ex : Bar Code, RFID Tags and Auto ID

Mobile Service Management

Ex : Field Service Management

Mobile Solutions for SCM

Mobile Customer Service System
PDA Online
Retrieve BOM, Part Inventory, Order Service Tracking Receive Specific Service Request Schedule Management Symptom vs. Technical Advice Estimation on Service BBS

PDA Offline
Service Handbook Customer Information / Service History SMS Service Progress Report

Mobile Solutions for SCM

Mobility in Sales
Online
Order Entry, Order Tracking, A/R Tracking, Customer Information, Inventory, Production Request, Shipping History, Order Confirm, E-Approval, BBS

Offline
E-mail, Schedule Management, Employee Information, BBS

Mobility in Factory
Facility (Machine) Maintenance Management
Periodic Maintenance on Facility (Leakage, Vibration, Noise, Temperature, and etc.) PDA with Bar-code

Work Order Management

Retrieve W/O List and Completion Result New Work Order Entry Upload to Legacy

The Future B2B Trends

From simple to complex transaction From middlemen to speculators From transactions to intelligent solutions