Phillip L. Carter

B2B e‐marketplaces: a typology by functionality

Purpose – The purpose of this article is to develop a typology of e‐marketplace functionality and then link the typology to the associated value creation potential of differing types of e‐marketplaces.Design/methodology/approach – In‐depth interviews with the executives of 50 e‐marketplaces, a web/mail‐based survey of another 350 e‐marketplaces and interviews with several e‐marketplace customers were conducted.Findings – B2B e‐marketplaces offer a variety of different value propositions. Leading e‐marketplaces have a well‐developed strategy for reaching a particular segment of the buying community, based on service needs. Developing e‐marketplaces do not demonstrate the same focus. On one hand, only a few e‐marketplaces had developed the same winning constellations of services, while on the other hand, most were planning a roll‐out of a wide variety of services that would carry them far beyond a focused strategy. The success of this approach seems problematic.Practical implications – The prudent customer ...

The supply base reduction process : an empirical investigation

Purpose – This research seeks to better understand the supply base reduction approaches and processes utilized by organizations.Design/methodology/approach – In‐depth case studies were conducted with ten organizations that recently reduced their supply bases. These organizations represented a variety of industries, type of product or service being purchased, and number of suppliers reduced from the supply base.Findings – Three different types of supply base reduction approaches are identified (systematic elimination, standardization, and tiering), examples of each are provided, and guidance is provided about situations in which each would be useful. A basic supply base reduction process is developed and outlined based on the similarities observed among these three different approaches.Practical implications – A better understanding of these supply base reduction approaches and processes can help organizations successfully implement such efforts by learning from the experiences of other organizations.Origi...

The Center for Advanced Purchasing Studies

The Center for Advanced Purchasing Studies (CAPS) is an international research center that serves the interests of academia, industry, and the purchasing/supply profession. Established in 1986 as the result of an affiliation agreement between the National Association of Purchasing Management (NAPM) and Arizona State University’s (ASU) College of Business, CAPS’ mission is to “contribute competitive advantage to organizations by providing leading-edge research to support the evolution of strategic purchasing/supply management.”

Explaining the Key Elements of Information Systems-Based Supply-Chain Strategy that are Necessary for Business-to-Business Electronic Marketplace Survival

Business-to-business electronic marketplaces (EMs) were hyped as the future of efficient supply chains and as essential to the growth of e-commerce, but in spite of this promise, many EMs failed in the first few years after 2000. Although numerous studies have involved EMs, little research has focused on the degree to which an EM’s automated supply- chain strategy contributed to its survival or failure. Accordingly, this study examines 400 EMs through an extensive survey of the strategic supply- chain capabilities in conjunction with McKinsey & Company and CAPS Research. These results are interpreted using existing strategy literature. The following factors were found to be positively related to EM survival: capturing detailed spend data, providing sourcing and process change recommendations, allowing international contracts, offering the ability to track supplier product availability, and having more than 100 employees. In contrast, the following factors led to EM failure: providing warranties, employing low to medium transaction functionality, integrating with a buyer’s accounting system, allowing buyers to “punch through” to supplier Web sites, permitting the online creation of requisition and purchase orders, transacting a daily volume less than

The Future of Purchasing and Supply: A Ten‐Year Forecast1

1,000, and having 25–75 employees. These results highlight the need for EMs to create network effects of economies of scale and scope for buyers, focus on core competencies, and create buyer lock-in through high switching costs. Existing EMs should focus their strategy on developing the factors found to lead to EM survival and eliminating the factors leading to failure.