When you're Big, You can be you own B2B E-Marketplace

 

 

Q1: Volkswagen operates its own proprietary B2B e-marketplaces in which its suppliers participate. What are the disadvantages to Volkswagen of not using a generic B2B e-marketplace with even more suppliers? What are the advantages to Volkswagen of developing and using its own proprietary B2B e-marketplace?

Disadvantages:

· Volkswagen could be missing out on using a new supplier who are just started to enter into the market. The new supplier would mostly go to a generic e-marketplace and start its advertising campaign rather than using Volkswagen own proprietary B2B e-marketplaces. In such, to attract the attention of Volkswagen, the new supplier would have to go directly to Volkswagen by offline and not online.

· Volkswagen could out on some demand aggregation as it does not let other buyers participate in its e-marketplace.
· Volkswagen needs to put a lot of funds to maintain its owned B2B e-marketplaces.

Advantages:
· Volkswagen can determine and control how the e-marketplace will operate.
· Volkswagen can gather vast amounts of competitive intelligence on it suppliers.
· Volkswagen has greatly reduced supplier power because Volkswagen is the only buyer in its own B2B e-marketplaces.

Q2 : When Volkswagen needs a new part design, it uses VWsupplygroup.com to get its suppliers involved in the design process early. This creates a tremendous amount of inter-organizational collaboration. What are the advantages to the suppliers and to Volkswagen in doing so?

The suppliers could work closely with one of their biggest buyers, Volkswagen. They can be sure to develop the part exactly as what Volkswagen wants it. Besides, the suppliers could have better understanding on what Volkswagen wants and why it wants it. Furthermore, Volkswagen can work closely with the supplier and it could choose its most trusted suppliers. It can get the suppliers to design the exact product needed and it can utilize the expertise of the supplier organizations in designing a new part.

Q3: How is Volkswagen’s VWgroupsupply.com B2B e-marketplace an example of a vertical e-marketplace implementation? How is it an example of a horizontal e-marketplace implementation? Why is it necessary that Volkswagen combine both of these e-marketplaces into one e-marketplace? What would be the drawbacks to creating two different e-marketplaces – one for suppliers of direct materials and one for suppliers of MRO material?

Volkswagen’s e-marketplace is a vertical e-marketplace because it is only for it and suppliers in the automotive industry. Volkswagen’s e-marketplace is a horizontal e-marketplace because it also include suppliers to MRO materials that Volkswagen needs. Both of these beinge combined because Volkswagen is the only participation in this e-marketplace and needs both direct and MRO materials. By creating two different e-marketplaces, Volkswagen would be duplicating many processes and have redundant information.

Q4: To make effective purchasing decisions, Volkswagen’s purchasing agents need business intelligence. What kind of business intelligence does iPAD provide to purchasing agents for carrying out their tasks? What additional kinds of business intelligence not discussed in this case could Volkswagen’s purchasing agents take advantage of to make more effective decisions?

IPAD provides a variety of business intelligence including the need for inventory parts, lists of potential suppliers, and the costs of the parts for each supplier. The iPAD system could include other forms of business intelligence (and it may very well) including suppliers according to their number of defective parts per million and suppliers according to how long they take to deliver their parts.

Q5: IPAD manages the workflow for purchasing agents. Describe how iPAD manages this process including information provided, steps to be executed, and the presentation of information.

IPAD provides the necessary information in the native language of the purchasing agent (which is the presentation of information through a Web browser) including the needed inventory, the list of potential suppliers, and the costs associated with each supplier. The steps in the workflow process include:

 

1) presenting the business event

2) providing the supporting information

3) sending the work flows electronically once they are completed.