B2B Electronic Markets: A Conceptual Model for Analyzing the Sources of Business Value

This paper describes research supporting the development of a conceptual model for understanding the sources of business value of Business-to-Business (B2B) Electronic Markets. Based on six case studies and an analysis of current literature, Aggregation, Matching, and Integration emerged as the three key sources of business value. The framework provides a structured and systematic approach for understanding various B2B Electronic Market models, and helps develop strategies to leverage these sources of business value

The effects of business-to-business relationships on electronic procurement systems: An exploratory study

For many organisations e-Procurement has become a necessity. Nevertheless, while e-procurement has generated considerable hype the phenomenon is generally under-researched. This paper explores the effects that business-to-business relationships have on e-Procurement systems using a field study of 6 companies. The study classifies business-to-business (B2B) relationships as being adversarial and collaborative, and examines the effects that each have on the electronically supported transaction phases of the procurement lifecycle. The research findings indicate that B2B relationships have most effect on the sourcing, fulfilment, and consumption phases of the procurement cycle

Salespeople are from Mars, purchasers are from Venus : matching sales to purchasing

There is no business without sales and no sales without customers. The bridge that spans business‐to‐business (B2B) selling and their customers is termed a buyer‐seller relationship. The contemporary buyer‐seller environment presents salespeople with the challenge of finding ways to overcome the current ineffectiveness of many previously effective sales approaches. The effectiveness of many sales approaches has been questioned based on the ongoing paradigm shift in the purchasing domain. Purchasing based changes have had, and are expected to continue to have a tremendous influence on the buying process. Yet, the different roles in buyer‐seller relationships are, in the Marketing and Sales domain, either studied from the buyer’s perspective or from the seller’s point of view. Buying organizations, however, are gradually shifting power to the purchasing function. For sales practitioners and sales researchers, this ongoing shift demands a study in the evolution of the purchasing function in order to improve their sales approaches. This doctoral thesis analyzes the domain of Buyer‐Seller Relationships in B2B contexts, with an emphasis on Personal Selling and Sales Management. The objective of this dissertation is to obtain a better understanding of how changes in market conditions and advances in technology have empowered the B2B purchaser, thereby creating new challenges to the sales organization and sales function. The first essay of this dissertation is based on an extensive review of the Buyer‐Seller literature and is a call to sales practitioners to pay more attention to the purchasing function and to develop sales strategies and sales approaches that cater to the customers’ purchasing function. The research contribution of the first essay is a presentation of a research grid for future sales research. This framework depicts avenues for future sales research that encompasses the important topics that are considered to be important for the Purchasing & Supply Management (PSM) and the Buyer‐Seller research domains. Based on findings from the first essay, the second essay entails how the sales side should first understand specific purchaser’s jargon, the strategic importance of their offer while looking through a purchaser’s lens, to then adapt the sales messaging based on particular knowledge needs by the purchaser. This results in a selling approach that further advances the curren versions of value‐based selling, and contributes to the sphere of salespeople who succeed by a better presentation of the competitive advantages of their offer related to future cost benefits and risk reduction. Finally, the third essay matches existing sales strategies according to the purchasing maturity of the customers. The maturity of the customer’s purchasing department is defined by Reck and Long (1977) in four gradual steps of professionalism. This research essay draws on these steps by first identifying the purchasing department’s maturity level, followed by an examination of what sales strategies are best suited to match the specific needs associated with the four levels of purchasing maturity

The effects of business-to-business relationships on electronic procurement systems: An exploratory study

For many organisations e-Procurement has become a necessity. Nevertheless, while e-procurement has generated considerable hype the phenomenon is generally under-researched. This paper explores the effects that business-to-business relationships have on e-Procurement systems using a field study of 6 companies. The study classifies business-to-business (B2B) relationships as being adversarial and collaborative, and examines the effects that each have on the electronically supported transaction phases of the procurement lifecycle. The research findings indicate that B2B relationships have most effect on the sourcing, fulfilment, and consumption phases of the procurement cycl

The Impact of Internet-Based Technologies on the Procurement Strategy

The big company may spend millions of dollars of expenditure on indirect goods and services. However, much of them may be carried out locally or divisionally, bypassing central guidelines. From a corporate perspective the fragmented procurement resulted in slow and expensive processes and excessive product costs due to poor leverage of buying power. The greater information processing capability achieved through the use of technology, especially Internet-based procurement systems, will enable significant cost improvements and leverage to be obtained through a more strategic approach to management of the typically routine and repetitive tasks with a low unit value, high variety of goods and services, but relatively high frequency. According to the researches, a 10 percent reduction in purchase costs can easily lead to a 50 percent rise in profit margin. This paper addresses the issue of how the Internet-based technologies will impact on the procurement strategy. I believe that the radical change in the Internet will give rise to new marketspaces, which may have the largest impact on procurement. The benefits to aware impacts come not only through direct cost savings but also through the improved efficiency of companies rethinking how they operate

Designing an AI-enabled Bundling Generator in an Automotive Case Study

Procurement and marketing are the main boundary-spanning functions of an organization. Some studies highlight that procurement is less likely to benefit from artificial intelligence emphasizing its potential in other functions, i.e., in marketing. A case study in the automotive industry of the bundling problem utilizing the design science approach is conducted from the perspective of the buying organization contributing to theory and practice. We rely on information processing theory to create a practical tool that is augmenting the skills of expert buyers through a recommendation engine to make better decisions in a novel way to further save costs. Thereby, we are adding to the literature on spend analysis that has mainly been looking backward using historical data of purchasing orders and invoices to infer saving potentials in the future – our study supplements this approach with forward-looking planning data with inherent challenges of precision and information-richness

The critical success factors of e-procurement adoption

E-Procurement is electronic used system for making the purchases through online by a single click. Some of the companies all over the world implement E-Procurement and succeed while some companies was failed. There are two main objectives of this research study; To identity the critical success factors influencing the success of E Procurement and at the same time to establish the challenges that face E-Procurement adoption in Top Glove Sdn. Bhd. With the rapid changes in dynamic society, organizations must adopt and adapt with the new paperless procurement process to be on par with the competitors. This research is a qualitative research study and it involves interview session with expert and experience staffs particularly from a manufacturing industry which produces its own products. Information and data are some first and secondary data which were collected and compiled from the particular organization. At the end of the research, it is indeed the embracing of new procurement process has increased the performance of procurement in the industry. Organizations are able to minimize cost, supply chain players, on the other hand, are able to share information at real time to avoid future production line down which will cost much on the changeover. The longer the changeover duration in production line, the higher the loss to the organization. In addition, the paperless way of work flow will reduce bureaucracy which means it will result in less time consumption. In a nutshell, the adoption of E-Procurement in manufacturing industry will exert higher procurement performance. Managers, buyers, planners, schedulers, suppliers, and master planners are able to foster stronger bond and understanding to achieve the common ultimate goals and aims